ClearPoint Neuro (CLPT) 10-Q 10 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 04, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-34822
Entity Registrant Name	ClearPoint Neuro, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	58-2394628
Entity Address, Address Line One	120 S. Sierra Ave.
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Solana Beach
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92075
City Area Code	(888)
Local Phone Number	287-9109
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	CLPT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		24,488,255
Entity Central Index Key	0001285550
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 23,524	$ 54,109
Short-term investments	21,613	0
Accounts receivable, net	3,348	2,337
Inventory, net	6,639	4,938
Prepaid expenses and other current assets	1,517	508
Total current assets	56,641	61,892
Property and equipment, net	689	539
Operating lease rights of use	1,992	2,241
Software license inventory	504	519
Licensing rights	320	265
Other assets	94	125
Total assets	60,240	65,581
Current liabilities:
Accounts payable	1,592	427
Accrued compensation	1,814	2,604
Other accrued liabilities	870	537
Operating lease liabilities, current portion	532	507
Deferred product and service revenue, current portion	675	678
Total current liabilities	5,483	4,753
Operating lease liabilities, net of current portion	1,671	1,939
Deferred product and service revenue, net of current portion	401	264
2020 senior secured convertible notes payable, net	9,865	9,838
Total liabilities	17,420	16,794
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued and outstanding at June 30, 2022 and December 31, 2021	0	0
Common stock, $0.01 par value; 200,000,000 shares authorized; 24,480,600 shares issued and outstanding at June 30, 2022; and 23,665,991 issued and outstanding at December 31, 2021	245	237
Additional paid-in capital	184,769	182,482
Accumulated deficit	(142,194)	(133,932)
Total stockholders’ equity	42,820	48,787
Total liabilities and stockholders’ equity	$ 60,240	$ 65,581

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares issued (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	24,480,600	23,665,991
Common stock, shares outstanding (in shares)	24,480,600	23,665,991

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue:
Total revenue	$ 5,200	$ 3,413	$ 10,231	$ 7,443
Cost of revenue	1,943	1,139	3,728	2,555
Gross profit	3,257	2,274	6,503	4,888
Research and development costs	2,284	2,109	4,817	3,673
Sales and marketing expenses	2,187	1,590	4,032	3,165
General and administrative expenses	2,990	1,982	5,722	3,638
Operating loss	(4,204)	(3,407)	(8,068)	(5,588)
Other expense:
Other expense, net	(8)	(96)	3	(122)
Interest expense, net	(91)	(240)	(197)	(571)
Net loss	$ (4,303)	$ (3,743)	$ (8,262)	$ (6,281)
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.18)	$ (0.17)	$ (0.35)	$ (0.31)
Diluted (in dollars per share)	$ (0.18)	$ (0.17)	$ (0.35)	$ (0.31)
Weighted average shares used in computing net loss per share:
Basic (in shares)	23,985,577	21,523,393	23,834,847	20,195,488
Diluted (in shares)	23,985,577	21,523,393	23,834,847	20,195,488
Product revenue
Revenue:
Total revenue	$ 3,457	$ 2,363	$ 6,620	$ 5,525
Service and other revenue
Revenue:
Total revenue	$ 1,743	$ 1,050	$ 3,611	$ 1,918

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Revision of Prior Period, Accounting Standards Update, Adjustment	Common Stock	Additional Paid-in Capital	Additional Paid-in Capital Revision of Prior Period, Accounting Standards Update, Adjustment	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020			17,047,584
Beginning balance at Dec. 31, 2020	$ 2,377	$ (3,107)	$ 170	$ 121,729	$ (3,107)	$ (119,522)
Issuances of common stock:
Public offering of common stock (in shares)			2,127,660
Public offering of common stock	46,785		$ 21	46,764
Share-based compensation (in shares)			20,709
Share-based compensation	320		$ 1	319
Warrant and option exercises (cash and cashless) (in shares)			1,482,327
Warrant and option exercises (cash and cashless)	145		$ 15	130
Net loss for the period	(2,538)					(2,538)
Ending balance (in shares) at Mar. 31, 2021			20,678,280
Ending balance at Mar. 31, 2021	43,982		$ 207	165,835		(122,060)
Beginning balance (in shares) at Dec. 31, 2020			17,047,584
Beginning balance at Dec. 31, 2020	2,377	$ (3,107)	$ 170	121,729	$ (3,107)	(119,522)
Issuances of common stock:
Net loss for the period	(6,281)
Ending balance (in shares) at Jun. 30, 2021			22,322,344
Ending balance at Jun. 30, 2021	47,966		$ 223	173,546		(125,803)
Beginning balance (in shares) at Mar. 31, 2021			20,678,280
Beginning balance at Mar. 31, 2021	43,982		$ 207	165,835		(122,060)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of 2020 senior secured convertible note (in shares)			1,256,143
Conversion of 2020 senior secured convertible note	7,131		$ 13	7,118
Issuances of common stock:
Share-based compensation (in shares)			26,435
Share-based compensation	247			247
Warrant and option exercises (cash and cashless) (in shares)			361,486
Warrant and option exercises (cash and cashless)	349		$ 3	346
Net loss for the period	(3,743)					(3,743)
Ending balance (in shares) at Jun. 30, 2021			22,322,344
Ending balance at Jun. 30, 2021	47,966		$ 223	173,546		(125,803)
Beginning balance (in shares) at Dec. 31, 2021			23,665,991
Beginning balance at Dec. 31, 2021	48,787		$ 237	182,482		(133,932)
Issuances of common stock:
Share-based compensation (in shares)			29,916
Share-based compensation	899			899
Warrant and option exercises (cash and cashless) (in shares)			12,211
Warrant and option exercises (cash and cashless)	3			3
Net loss for the period	(3,959)					(3,959)
Ending balance (in shares) at Mar. 31, 2022			23,708,118
Ending balance at Mar. 31, 2022	45,730		$ 237	183,384		(137,891)
Beginning balance (in shares) at Dec. 31, 2021			23,665,991
Beginning balance at Dec. 31, 2021	48,787		$ 237	182,482		(133,932)
Issuances of common stock:
Net loss for the period	(8,262)
Ending balance (in shares) at Jun. 30, 2022			24,480,600
Ending balance at Jun. 30, 2022	42,820		$ 245	184,769		(142,194)
Beginning balance (in shares) at Mar. 31, 2022			23,708,118
Beginning balance at Mar. 31, 2022	45,730		$ 237	183,384		(137,891)
Issuances of common stock:
Share-based compensation (in shares)			379,122
Share-based compensation	880		$ 4	876
Warrant exercises (cash and cashless) (in shares)			367,006
Warrant exercises (cash and cashless)	253		$ 4	249
Issuance of common stock under employee stock purchase plan (in shares)			26,354
Issuance of common stock under employee stock purchase plan	260			260
Net loss for the period	(4,303)					(4,303)
Ending balance (in shares) at Jun. 30, 2022			24,480,600
Ending balance at Jun. 30, 2022	$ 42,820		$ 245	$ 184,769		$ (142,194)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Cash flows from operating activities:
Net loss	$ (4,303)	$ (3,959)	$ (3,743)	$ (2,538)	$ (8,262)	$ (6,281)
Adjustments to reconcile net loss to net cash flows from operating activities:
Allowance for doubtful accounts					(10)	92
Depreciation and amortization					187	62
Share-based compensation	880		247		1,779	567
Payment-in-kind interest					0	189
Amortization of debt issuance costs and original issue discounts					27	54
Amortization of lease rights of use, net of accretion in lease liabilities					267	267
Accretion of discounts on short-term investments					(23)	0
Increase (decrease) in cash resulting from changes in:
Accounts receivable					(1,001)	(617)
Inventory, net					(1,786)	(304)
Prepaid expenses and other current assets					(1,010)	(760)
Other assets					30	(93)
Accounts payable and accrued expenses					679	1,312
Lease liabilities					(261)	(195)
Deferred revenue					134	(142)
Net cash flows from operating activities					(9,250)	(5,849)	$ (12,700)
Cash flows from investing activities:
Purchases of property and equipment					(145)	(5)
Acquisition of licensing rights					(116)	0
Purchase of short-term investments					21,590	0
Net cash flows from investing activities					(21,851)	(5)
Cash flows from financing activities:
Proceeds from public offering of common stock, net of offering costs					0	46,785
Proceeds from stock option and warrant exercises					256	494
Proceeds from issuance of common stock under employee stock purchase plan					260	0
Net cash flows from financing activities					516	47,279
Net change in cash and cash equivalents					(30,585)	41,425
Cash and cash equivalents, beginning of period		$ 54,109		$ 20,099	54,109	20,099	20,099
Cash and cash equivalents, end of period	$ 23,524		$ 61,524		23,524	61,524	$ 54,109
Cash paid for:
Income taxes					0	0
Interest					$ 207	$ 353

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions		6 Months Ended
	Jan. 01, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Cash Flows [Abstract]
Capital expenditures accrued, not yet paid		$ 0.1
Net transfers of reusable components from loaned systems (less than)		$ 0.1	$ 0.1
Reduction of additional paid-in-capital	$ 3.1

Description of the Business and

Description of the Business and Financial Condition	6 Months Ended
	Jun. 30, 2022
Description Of Business And Liquidity [Abstract]
Description of the Business and Financial Condition	1. Description of the Business and Financial Condition ClearPoint Neuro, Inc. (the “Company”) is a commercial-stage medical device company focused on the development and commercialization of innovative platforms for performing minimally invasive surgical procedures in the brain. From the Company’s inception in 1998, the Company deployed significant resources to fund its efforts to develop the foundational capabilities for enabling MRI-guided interventions, building an intellectual property portfolio, and identifying and building out commercial applications for the technologies it develops. In 2021, the Company’s efforts expanded beyond the MRI suite to encompass development and commercialization of new neurosurgical device products for the operating room setting, as well as consulting services for pharmaceutical and biotech companies, academic institutions, and contract research organizations. The Company’s initial product offering, the ClearPoint system, is an integrated system comprised of capital equipment and disposable products, designed to allow minimally invasive procedures in the brain to be performed in an MRI suite. The ClearPoint Array Neuro Navigation System and its principal disposable component, introduced in 2021, is designed to be deployed in an operating room setting while also being usable in an MRI suite. Both systems provide guidance for the placement and operation of instruments or devices during the planning and operation of neurosurgical procedures. The Company received 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) in 2010 to market the ClearPoint system in the United States for general neurosurgical interventional procedures; in February 2011, the Company also obtained CE marking approval for its ClearPoint system. In 2011 and 2018, the Company received 510(k) clearance and CE marking approval, respectively, for its SmartFlow cannula which is being used, or is under evaluation, by more than 45 pharmaceutical and biotech companies, academic institutions, or contract research organizations having a focus on biologics and drug delivery. COVID-19 The extraordinary measures taken beginning in 2020 by governmental authorities in response to the novel strain of the coronavirus (“COVID-19”) pandemic led to reduced economic activity, including the postponement or cancellation of elective surgical procedures. Although economic activity is returning to normalized levels, new variants of COVID-19 continue to spread in the United States and across the globe. Furthermore, recessionary conditions on the global economy caused by the COVID-19 pandemic could have a material adverse effect on the Company’s business. Although most segments of the United States economy have reopened, future surges of COVID-19 due to new variants could occur in the future, and directives, such as the postponement or cancellation of elective surgeries, which historically have represented approximately 80% of the number of surgical procedures using the Company’s ClearPoint system, could be reinstated. Additionally, global economic and supply chain disruptions, labor shortages and inflationary conditions caused by the COVID-19 pandemic and geopolitical instability could have a material adverse effect on the Company’s business. The rapid development and fluidity of the situation precludes any prediction as to the ultimate impact COVID-19 will have on the Company’s business, financial condition, results of operation and cash flows, which will depend largely on future developments, including vaccination rates, the effectiveness of vaccines, the response by governmental authorities and regulators and the duration and scope of the COVID-19 outbreak in the United States. Liquidity The Company has incurred net losses since its inception, which has resulted in a cumulative deficit at June 30, 2022 of $142.2 million. In addition, the Company’s use of cash from operations amounted to $9.3 million for the six months ended June 30, 2022 and $12.7 million for the year ended December 31, 2021. Since its inception, the Company has financed its operations principally from the sale of equity securities and the issuance of notes payable. In January 2020, the Company entered into a Securities Purchase Agreement (the “SPA”) with two investors (each, a “2020 Convertible Noteholder,” and together, the “2020 Convertible Noteholders”) under which the Company issued an aggregate principal amount of $17.5 million of floating rate secured convertible notes with a five-year term (the “First Closing Notes”), resulting in proceeds, net of financing costs and a commitment fee paid to one of the 2020 Convertible Noteholders, of approximately $16.8 million. The SPA also gave the Company the right, but not the obligation, to request one of the 2020 Convertible Noteholders to purchase an additional $5.0 million in principal amount of a note (the “Second Closing Note”, and, together with the First Closing Notes, the “2020 Secured Notes”). On December 29, 2020, under the terms of an amendment to the SPA (the “Amendment”) which, among other provisions, increased the principal amount of the Second Closing Note, the Company issued the Second Closing Note in the principal amount of $7.5 million to one of the 2020 Convertible Noteholders. See Note 6 for additional information with respect to the 2020 Secured Notes. As discussed in Note 8, on February 23, 2021, the Company completed a public offering of 2,127,660 shares of its common stock. Net proceeds from the offering were approximately $46.8 million after deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company. Based on the foregoing, in management’s opinion, cash and cash equivalent balances and short-term investments at June 30, 2022 are sufficient to support the Company’s operations and meet its obligations for at least the next twelve months.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on a basis consistent with the Company’s December 31, 2021 audited consolidated financial statements, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth therein. These condensed consolidated financial statements have been prepared in accordance with SEC rules for interim financial information, and, therefore, omit certain information and footnote disclosures necessary to present such statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”). The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2021 Form 10-K. The accompanying condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by GAAP for a complete set of financial statements. The results of operations for the three and six months ended June 30, 2022 may not be indicative of the results to be expected for the entire year or any future periods. Inventory Inventory is carried at the lower of cost (first-in, first-out method) or net realizable value. Items in inventory relate predominantly to the Company’s ClearPoint system. Software license inventory related to ClearPoint systems undergoing on-site customer evaluation is included in inventory in the accompanying condensed consolidated balance sheets. All other software license inventory is classified as a non-current asset. The Company periodically reviews its inventory for obsolete items and provides a reserve upon identification of potentially obsolete items. Intangible Assets The Company is a party to certain license agreements that provide rights to the Company for the development and commercialization of products. Under the terms of those license agreements, the Company made payments to the licensors upon execution of the license agreements for access to the underlying technologies and will make future payments based on the achievement of regulatory and commercialization milestones as defined in the license agreements. In conformity with Accounting Standards Codification Section 350, “Intangibles – Goodwill and Other,” the Company amortizes its investment in the license rights described above over an expected useful life of five years. In addition, the Company periodically evaluates the recoverability of its investment in the license rights and records an impairment charge in the event such evaluation indicates that the Company’s investment is not likely to be recovered. Revenue Recognition The Company’s revenue is comprised primarily of: (1) product revenue resulting from the sale of functional neurosurgery, navigation, therapy, and biologics and drug delivery disposable products; (2) product revenue resulting from the sale of ClearPoint capital equipment and software; (3) revenue resulting from the service, installation, training and shipping related to ClearPoint capital equipment and software; and (4) consultation revenue and clinical case support revenue in connection with customer-sponsored clinical trials. The Company recognizes revenue when control of the Company’s products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services, in a process that involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. When a contract calls for the satisfaction of multiple performance obligations for a single contract price, the Company allocates the contract price among the performance obligations based on the relative stand-alone prices for each such performance obligation customarily charged by the Company. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Lines of Business; Timing of Revenue Recognition • Functional neurosurgery navigation product, biologics and drug delivery systems product, and therapy product sales: Revenue from the sale of functional neurosurgery navigation products (consisting of disposable products sold commercially and related to cases utilizing the Company’s ClearPoint system), biologics and drug delivery systems products (consisting primarily of disposable products related to customer-sponsored clinical trials utilizing the ClearPoint system), and therapy products (consisting primarily of disposable laser-related products used in non-neurosurgical procedures), is generally based on customer purchase orders, the predominance of which require delivery within one week of the order having been placed, and are generally recognized at the point in time of shipping to the customer, which is the point at which legal title, and risks and rewards of ownership, transfer to the customer. For certain customers, legal title and risks and rewards of ownership transfer upon delivery to the customer as stated in their respective contracts, in which case revenue is recognized upon delivery. • Capital equipment and software sales ◦ Capital equipment and software sales preceded by evaluation periods: The predominance of capital equipment and software sales (consisting of integrated computer hardware and software that are integral components of the Company’s ClearPoint system) are preceded by customer evaluation periods. During these evaluation periods, installation of, and training of customer personnel on, the systems have been completed and the systems have been in operation. Accordingly, revenue from capital equipment and software sales following such evaluation periods is recognized at the point in time the Company is in receipt of an executed purchase agreement or purchase order. ◦ Capital equipment and software sales not preceded by evaluation periods: Revenue from sales of capital equipment and software not preceded by an evaluation period is recognized upon delivery to the customer and installation. For capital equipment that does not require installation, revenue is recognized upon shipment, however, for those customers where legal title and risks and rewards of ownership transfer upon delivery, revenue is recognized at such time. For both types of capital equipment and software sales described above, the Company’s determination of the point in time at which to recognize revenue represents that point at which the customer has legal title, physical possession, and the risks and rewards of ownership, and the Company has a present right to payment. • Functional neurosurgery navigation and therapy services: The Company recognizes revenue for such services at the point in time that the performance obligation has been satisfied. • Biologics and drug delivery services: ◦ Consultation Services: The Company recognizes consultation revenue at the point in time such services are performed. ◦ Clinical Service Access Fees: For contracts in which the Company receives a periodic fixed fee, irrespective of the number of cases attended by Company personnel or hours of services provided to the customer during such periods, revenue is recognized ratably over the period covered by such fees. A time-elapsed output method is used for such fees because the Company transfers control evenly by providing a stand-ready service. ◦ Clinical Service Procedure-Based Fees: The Company recognizes revenue at the point in time a case is attended by Company personnel. • Capital equipment-related services: ◦ Equipment service: Revenue from service of ClearPoint capital equipment and software previously sold to customers is based on agreements with terms ranging from one The Company may also enter into contracts with customers who own ClearPoint capital equipment, which bundle maintenance and support services and access to software and hardware upgrades made commercially available over the term of the contract, for a single contract price, typically paid on an annual basis. The Company allocates the contract price among the performance obligations based on the relative stand-alone prices for each such performance obligation and recognizes the revenue ratably on a monthly basis. In line with equipment service, a time-elapsed output method is used as the Company is providing a stand-ready service. ◦ Installation, training and shipping: Consistent with the Company’s recognition of revenue for capital equipment and software sales as described above, fees for installation, training and shipping in connection with sales of capital equipment and software that have been preceded by customer evaluation periods are recognized as revenue at the point in time the Company is in receipt of an executed purchase order for the equipment and software. Installation, training and shipping fees related to capital equipment and software sales not having been preceded by an evaluation period are recognized as revenue concurrent with the recognition of revenue of the related capital equipment. The Company operates in one industry segment, and the predominance of its sales are to U.S.-based customers. Payment terms under contracts with customers generally are in a range of 30-60 days after the customers’ receipt of the Company’s invoices. The Company’s terms and conditions do not provide for a right of return unless for: (a) product defects; or (b) other conditions subject to the Company’s approval. See Note 3 for additional information regarding revenue recognition. Net Loss Per Share The Company computes net loss per share using the weighted-average number of common shares outstanding during the period. Basic and diluted net loss per share are the same because the conversion, exercise or issuance of all potential common stock equivalents, which comprise the entire amount of the Company’s outstanding common stock options and warrants, as described in Note 8, and the potential conversion of the First Closing Note, as described in Note 6, would be anti-dilutive, due to the reporting of a net loss for each of the periods in the accompanying condensed consolidated statements of operations. Concentration Risks and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company may at times invest its excess cash in interest bearing accounts and U.S. Treasury Bills. It classifies all highly liquid investments with original stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months but less than twelve months as short term investments. The Company classifies the U.S. Treasury Bills as held-to-maturity in accordance with ASC 320, "Investments - Debt and Equity Securities." Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity and are recorded at amortized cost on the accompanying condensed consolidated balance sheet, adjusted for the accretion of discounts using the interest method. The Company holds the remainder of its cash and cash equivalents on deposit with financial institutions in the U.S. insured by the Federal Deposit Insurance Corporation. At June 30, 2022, the Company had approximately $12.4 million in bank balances that were in excess of the insured limits. At June 30, 2022, there were two customers whose accounts receivable balances represented 18% and 11% of accounts receivable at that date. At December 31, 2021, one customer accounted for 15% of accounts receivable at that date. One pharmaceutical customer, a related party who is a stockholder, a noteholder, and who has a representative on the Company's Board of Directors (see Note 6), for whom the Company provides hardware, software, clinical services and market development services in support of the customer's clinical trials, and from whom the Company earns a quarterly fee, accounted for 14% and 21% of total sales in the three-month periods ended June 30, 2022 and 2021, respectively, and 16% and 19% of total sales in the six-month periods ended June 30, 2022 and 2021, respectively. There was an additional customer who comprised 11% of total sales in the three-month period ended June 30, 2022. Prior to granting credit, the Company performs credit evaluations of its customers’ financial condition, and generally does not require collateral from its customers. The Company will provide an allowance for doubtful accounts when collections become doubtful. The allowance for doubtful accounts at June 30, 2022 and December 31, 2021 was $0.2 million and $0.3 million, respectively. The Company is subject to risks common to emerging companies in the medical device industry, including, but not limited to: new technological innovations; acceptance and competitiveness of its products; dependence on key personnel; dependence on key suppliers; dependence on third-party collaboration, license and joint development partners; changes in general economic conditions and interest rates; protection of proprietary technology; compliance with changing government regulations; uncertainty of widespread market acceptance of products; access to credit for capital purchases by customers; and product liability claims. Certain components used in manufacturing have relatively few alternative sources of supply and establishing additional or replacement suppliers for such components cannot be accomplished quickly. The inability of any of these suppliers to fulfill the Company’s supply requirements may negatively impact future operating results. Adoption of New Accounting Standard Effective January 1, 2021, the Company adopted, on a modified retrospective method of transition, the provisions of Accounting Standards Update No. 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (the “ASU”). The ASU is effective for public companies, other than smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, and for smaller reporting companies, which is the Company’s current classification, for fiscal years beginning after December 31, 2023. However, the ASU permits early adoption no earlier than for fiscal years beginning after December 31, 2020, and the Company elected such early adoption. The ASU amends prior authoritative literature to reduce the number of accounting models for, among others, convertible debt instruments for which the embedded conversion features of such instruments had previously been required to be separated from the host contract. The Company determined that the conversion feature embedded in the Second Closing Note (see Note 6) was within the scope of the ASU. Accordingly, the discount originally recorded in connection with the issuance of the Second Closing Note and a corresponding amount recorded in additional paid-in capital, each in the amount of approximately $3.1 million at the date of issuance of the Second Closing Note, were reversed as of the date of adoption of the ASU. Reclassifications The accompanying consolidated statement of operations for the three and six months ended June 30, 2022 contains certain items formerly classified as sales and marketing expenses and research and development expenses that have been reclassified to cost of revenue. The accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2021 have been conformed to the 2022 presentation.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	3. Revenue Recognition Revenue by Service Line Three Months Ended June 30, (in thousands) 2022 2021 Functional neurosurgery navigation and therapy Disposable products $ 1,798 $ 1,861 Services 375 — Subtotal – Functional neurosurgery navigation and therapy 2,173 1,861 Biologics and drug delivery Disposable products 1,225 450 Services 1,183 940 Subtotal – Biologics and drug delivery revenue 2,408 1,390 Capital equipment and software Systems and software products 434 52 Services 185 110 Subtotal – Capital equipment and software revenue 619 162 Total revenue $ 5,200 $ 3,413 Six Months Ended June 30, (in thousands) 2022 2021 Functional neurosurgery navigation and therapy Disposable products $ 3,661 $ 3,779 Services 750 — Subtotal – Functional neurosurgery navigation and therapy 4,411 3,779 Biologics and drug delivery Disposable products 2,075 1,364 Services 2,487 1,685 Subtotal – Biologics and drug delivery revenue 4,562 3,049 Capital equipment and software Systems and software products 884 382 Services 374 233 Subtotal – Capital equipment and software revenue 1,258 615 Total revenue $ 10,231 $ 7,443 Contract Balances • Contract assets – Substantially all the Company’s contracts with customers are based on customer-issued purchase orders for distinct products or services. Customers are billed generally upon shipment of such products or delivery of such services, and the related contract assets comprise the accounts receivable balances included in the accompanying condensed consolidated balance sheets. • Contract liabilities – The Company generally bills and collects capital equipment and software-related service fees at the inception of the service agreements, which have terms ranging from one During the three and six months ended June 30, 2022, the Company recognized capital equipment and software-related service revenue of approximately $0.1 million and $0.3 million, respectively, which was previously included in deferred revenue in the accompanying condensed consolidated balance sheet at December 31, 2021. Revenue with respect to remaining performance obligations related to capital equipment and software-related service agreements and the upfront payments discussed under the heading "Contract Balances" above amounted to approximately $0.8 million at June 30, 2022. The Company expects to recognize approximately 53% of this revenue over the next twelve months and the remainder thereafter.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurement	4. Fair Value Measurement Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value of cash and cash equivalents of $23.5 million and $54.1 million as of June 30, 2022 and December 31, 2021, respectively, is derived using Level 1 inputs. The cash equivalents are comprised of short-term bank deposits, money market funds, and U.S. Treasury bills with original maturities of three months or less, and the carrying value is a reasonable estimate of fair value. At June 30, 2022, the Company had $21.6 million of short-term investments, consisting of six and twelve month U.S. Treasury Bills, which are classified as held to maturity and carried at amortized cost, adjusted for the accretion of discounts using the interest method. The carrying value of the debt securities approximates fair value based on Level 1 inputs. The Company has the intent and ability to hold these investments to maturity in order to collect interest payments over the life of the investments.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
Inventory	5. Inventory Inventory consists of the following as of June 30, 2022 and 2021: (in thousands) June 30, December 31, Raw materials and work in process $ 4,753 $ 2,718 Software licenses 210 210 Finished goods 1,676 2,010 Inventory, net, included in current assets 6,639 4,938 Software licenses – non-current 504 519 Total $ 7,143 $ 5,457

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Notes Payable	6. Notes Payable As a result of the transactions described below, an aggregate principal amount of $10 million of the 2020 Secured Convertible Notes was outstanding at June 30, 2022. At the option of the holder, who is a customer and has a representative on the Company's Board of Directors, at any time prior to maturity, the principal amount may be convertible to the Company’s common stock at a conversion price of $6.00, subject to adjustments as set forth in the SPA and the note agreement. On January 29, 2020 (the “Closing Date”), the Company completed a financing transaction (the “2020 Financing Transaction”) with two investors (the "2020 Convertible Noteholders"), whereby the Company issued an aggregate principal amount of $17.5 million of First Closing Notes pursuant to the SPA, which, unless earlier converted or redeemed, mature on the fifth anniversary of the Closing Date and bear interest at a rate equal to the sum of (i) the greater of (a) the three (3)-month London Interbank Offered Rate (“LIBOR”) and (b) two percent (2%), plus (ii) a margin of 2% on the outstanding balance of the First Closing Notes, payable quarterly on the first business day of each calendar quarter. The First Closing Notes may be converted at a price of $6.00 per share, subject to certain adjustments set forth in the SPA, and may not be pre-paid without the consent of the noteholder, provided that the Company must offer to pre-pay such other noteholder on the same terms and conditions. In May 2021, one of the 2020 Convertible Noteholders (the “Converting Noteholder”) converted the entire $7.5 million principal amount of such Converting Noteholder’s First Closing Note, and related accrued interest, amounting to approximately $0.04 million, into 1,256,143 shares of the Company’s common stock. At the Closing Date, the SPA gave the Company the right, but not the obligation, to request at any time on or prior to January 11, 2022, that one of the 2020 Convertible Noteholders purchase an additional $5.0 million in aggregate principal amount of Second Closing Note and an additional $10.0 million in aggregate principal amount of Third Closing Note (as defined in the SPA; together, with the Second Closing Note, the “Additional Convertible Notes”), provided that such 2020 Convertible Noteholder has the right, but not the obligation, to purchase such notes. The Additional Convertible Notes would also mature on the fifth anniversary of the Closing Date. On December 29, 2020, the Company and the 2020 Convertible Noteholders entered into the Amendment to the SPA, the terms of which, among other provisions, provided for: (a) an increase in the principal amount of the Second Closing Note to $7.5 million; (b) a revision of the interest rate to be borne by the Second Closing Note to consist of: (i) cash interest of 2% per annum, payable quarterly; and (ii) payment-in-kind interest of 5% per annum, accruable quarterly as an addition to the unpaid principal balance of the Second Closing Note; and (c) an increase in the conversion price of the Second Closing Notes to $10.14 per share, subject to certain adjustments set forth in the SPA. Upon execution of the Amendment, the Company issued the Second Closing Note to one of the 2020 Convertible Noteholders. On November 3, 2021, the holder of the Second Closing Note converted the entire $7.5 million principal amount of such note, along with related accrued and payment in-kind interest aggregating $0.3 million, into 773,446 shares of the Company's common stock. The aggregate carrying amounts of the First Closing Notes in the accompanying June 30, 2022 and December 31, 2021 condensed consolidated balance sheets are presented net of financing costs, comprised of commissions and legal expenses, having an unamortized balance of $0.1 million and $0.2 million at those respective dates. Prior to the conversion of the First Closing Note, the aggregate carrying amount was presented net of a discount, comprised of a commitment fee paid to the Converting Noteholder, amounting to $0.2 million. Upon conversion of the related note, the discount was reversed, with a corresponding amount being recorded as a reduction of additional paid-in capital. The unamortized balances of the financing costs and the discount, during the period prior to the conversion of the related First Closing Note, were charged to interest expense over the respective terms of the First Closing Notes under the effective interest method. Upon issuance of the Second Closing Note, the carrying amount was presented net of a discount, amounting to approximately $3.1 million, which represented the value of the deemed beneficial conversion feature embedded in the Second Closing Note. A conversion feature is deemed to be beneficial when the conversion price, discussed above, is lower than the closing price per share of the Company’s common stock, which was $14.34 on the date of issuance of the Second Closing Note. As discussed in Note 2, effective January 1, 2021, the Company adopted the provisions of ASU 2020-06 which no longer required such beneficial conversion features to be separately accounted for, and as a result, the accompanying December 31, 2021 condensed consolidated balance sheet reflects the elimination of both the discount and a corresponding increase to additional paid-in capital. Under the terms of the SPA, as amended, the Company had the right, but not the obligation, to request a 2020 Convertible Noteholder to purchase the Third Closing Note, and the 2020 Convertible Noteholder had the right, but not the obligation, to purchase such note. As of January 11, 2022, the Company's right expired. The 2020 Secured Notes are secured by all the assets of the Company. An executive officer of one of the 2020 Convertible Noteholders is a member of the Company’s Board of Directors. Scheduled Notes Payable Maturities Scheduled principal payments as of June 30, 2022 with respect to notes payable are summarized as follows: Year ending December 31, (in thousands) 2025 $ 10,000 Total scheduled principal payments 10,000 Less: Unamortized financing costs (135) Total $ 9,865

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Leases	7. Leases The Company leases space in Irvine, California that houses office space and a manufacturing facility under a non-cancellable lease. The lease term commenced on October 1, 2018 and expires in September 2023. The Company has the option to renew the lease for two additional periods of five years each. The Company also leases office space in Solana Beach, California that serves as its corporate headquarters and houses certain management and research and development personnel. The lease term commenced on December 15, 2020, is set to expire on December 31, 2026, and is renewable for an additional five-year period, at the Company’s option, provided that the Company’s landlord has entered into an extension of its lease for the office space that encompasses the Company’s office space for at least five years. Both leases are classified as operating leases in conformity with GAAP. The aggregate lease costs, included in general and administrative expense, were $0.1 million for each of the three months ended June 30, 2022 and 2021, and was $0.3 million for the six months ended June 30, 2022 and 2021.

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Stockholders' Equity	8. Stockholders’ Equity 2021 Public Offering On February 23, 2021, the Company completed a public offering of 2,127,660 shares of its common stock, composed of 1,850,140 shares of common stock initially offered at a public offering price of $23.50 per share and an additional 277,520 shares of common stock sold pursuant to the exercise of the underwriters’ option to purchase additional shares at the price of $22.09 per share. Net proceeds from the offering totaled approximately $46.8 million after deducting underwriting discounts and commissions, and other offering expenses paid by the Company. The underwriting agreement contains representations, warranties, agreements and indemnification obligations by the Company that are customary for this type of transaction. Share-Based Compensation Expense The Company records share-based compensation expense on a straight-line basis over the related vesting period and recognizes forfeitures as they occur. The following table sets forth share-based compensation expense included in general and administrative expense in the condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, (in thousands) (in thousands) 2022 2021 2022 2021 $880 $247 $1,779 $567 As of June 30, 2022, there was $1.8 million and $6.6 million of total unrecognized compensation expense related to stock options and restricted stock, respectively, which is expected to be recognized over a weighted-average period of 2.2 years and 2.4 years, respectively. Stock Option Activity Stock option activity under all of the Company’s plans during the six months ended June 30, 2022 is summarized below: Stock Options Weighted-average Weighted-average Intrinsic Value (1) (in thousands) Outstanding at December 31, 2021 1,350,473 $ 10.10 Granted 147,723 $ 10.91 Exercised (1,000) $ 2.60 Forfeited or expired (75,723) $ 40.07 Outstanding at June 30, 2022 1,421,473 $ 8.59 6.6 $ 10,479 (1) Intrinsic value is calculated as the estimated fair value of the Company’s stock at the end of the related period less the option exercise price of in-the-money options. Restricted Stock Activity Restricted stock activity, which includes restricted stock awards ("RSA") and restricted stock unit awards ("RSU"), for the six months ended June 30, 2022 is summarized below: Restricted Stock Weighted - Average Outstanding at December 31, 2021 380,105 $ 10.41 Granted 447,175 $ 10.90 Vested (32,107) $ 10.01 Forfeited (22,991) $ 14.41 Outstanding at June 30, 2022 772,182 $ 10.25 ESPP On June 3, 2021, the Company’s stockholders adopted and approved the ClearPoint Neuro, Inc. Employee Stock Purchase Plan (the “ESPP”), which allows eligible employees to acquire shares of the Company’s common stock through payroll deductions at a discount to market price. A total of 400,000 shares of the Company’s common stock were made available for issuance pursuant to the terms of the ESPP. The first offering period commenced on July 1, 2021. During the six months ended June 30, 2022, 26,354 shares were purchased at an average per share price of $9.86. Warrants Warrants to purchase shares of the Company's common stock were issued in connection with financing transactions in 2015 and 2017. These warrants contain net exercise provisions giving the holder the option of acquiring a number of shares having a value equal to the difference between the exercise price and the current stock price, in lieu of paying the exercise price to acquire the full number of stated shares. All of the warrants outstanding at June 30, 2022 will terminate in 2023. Common stock warrant activity for the six months ended June 30, 2022 is as follows: Warrant Weighted-average Intrinsic Value (1) (in thousands) Outstanding at December 31, 2021 668,907 $ 2.97 Exercised (462,353) $ 2.20 Terminated (170,000) $ 2.20 Outstanding at June 30, 2022 36,554 $ 16.23 $ — (1) Intrinsic value is calculated as the estimated fair value of the Company’s stock at the end of the related period less the warrant exercise price of in-the-money warrants.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Use of Estimates	Basis of Presentation and Use of Estimates In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on a basis consistent with the Company’s December 31, 2021 audited consolidated financial statements, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth therein. These condensed consolidated financial statements have been prepared in accordance with SEC rules for interim financial information, and, therefore, omit certain information and footnote disclosures necessary to present such statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”). The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2021 Form 10-K. The accompanying condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by GAAP for a complete set of financial statements. The results of operations for the three and six months ended June 30, 2022 may not be indicative of the results to be expected for the entire year or any future periods.
Inventory	Inventory Inventory is carried at the lower of cost (first-in, first-out method) or net realizable value. Items in inventory relate predominantly to the Company’s ClearPoint system. Software license inventory related to ClearPoint systems undergoing on-site customer evaluation is included in inventory in the accompanying condensed consolidated balance sheets. All other software license inventory is classified as a non-current asset. The Company periodically reviews its inventory for obsolete items and provides a reserve upon identification of potentially obsolete items.
Intangible Assets	Intangible Assets The Company is a party to certain license agreements that provide rights to the Company for the development and commercialization of products. Under the terms of those license agreements, the Company made payments to the licensors upon execution of the license agreements for access to the underlying technologies and will make future payments based on the achievement of regulatory and commercialization milestones as defined in the license agreements.
Revenue Recognition	Revenue Recognition The Company’s revenue is comprised primarily of: (1) product revenue resulting from the sale of functional neurosurgery, navigation, therapy, and biologics and drug delivery disposable products; (2) product revenue resulting from the sale of ClearPoint capital equipment and software; (3) revenue resulting from the service, installation, training and shipping related to ClearPoint capital equipment and software; and (4) consultation revenue and clinical case support revenue in connection with customer-sponsored clinical trials. The Company recognizes revenue when control of the Company’s products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services, in a process that involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. When a contract calls for the satisfaction of multiple performance obligations for a single contract price, the Company allocates the contract price among the performance obligations based on the relative stand-alone prices for each such performance obligation customarily charged by the Company. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Lines of Business; Timing of Revenue Recognition • Functional neurosurgery navigation product, biologics and drug delivery systems product, and therapy product sales: Revenue from the sale of functional neurosurgery navigation products (consisting of disposable products sold commercially and related to cases utilizing the Company’s ClearPoint system), biologics and drug delivery systems products (consisting primarily of disposable products related to customer-sponsored clinical trials utilizing the ClearPoint system), and therapy products (consisting primarily of disposable laser-related products used in non-neurosurgical procedures), is generally based on customer purchase orders, the predominance of which require delivery within one week of the order having been placed, and are generally recognized at the point in time of shipping to the customer, which is the point at which legal title, and risks and rewards of ownership, transfer to the customer. For certain customers, legal title and risks and rewards of ownership transfer upon delivery to the customer as stated in their respective contracts, in which case revenue is recognized upon delivery. • Capital equipment and software sales ◦ Capital equipment and software sales preceded by evaluation periods: The predominance of capital equipment and software sales (consisting of integrated computer hardware and software that are integral components of the Company’s ClearPoint system) are preceded by customer evaluation periods. During these evaluation periods, installation of, and training of customer personnel on, the systems have been completed and the systems have been in operation. Accordingly, revenue from capital equipment and software sales following such evaluation periods is recognized at the point in time the Company is in receipt of an executed purchase agreement or purchase order. ◦ Capital equipment and software sales not preceded by evaluation periods: Revenue from sales of capital equipment and software not preceded by an evaluation period is recognized upon delivery to the customer and installation. For capital equipment that does not require installation, revenue is recognized upon shipment, however, for those customers where legal title and risks and rewards of ownership transfer upon delivery, revenue is recognized at such time. For both types of capital equipment and software sales described above, the Company’s determination of the point in time at which to recognize revenue represents that point at which the customer has legal title, physical possession, and the risks and rewards of ownership, and the Company has a present right to payment. • Functional neurosurgery navigation and therapy services: The Company recognizes revenue for such services at the point in time that the performance obligation has been satisfied. • Biologics and drug delivery services: ◦ Consultation Services: The Company recognizes consultation revenue at the point in time such services are performed. ◦ Clinical Service Access Fees: For contracts in which the Company receives a periodic fixed fee, irrespective of the number of cases attended by Company personnel or hours of services provided to the customer during such periods, revenue is recognized ratably over the period covered by such fees. A time-elapsed output method is used for such fees because the Company transfers control evenly by providing a stand-ready service. ◦ Clinical Service Procedure-Based Fees: The Company recognizes revenue at the point in time a case is attended by Company personnel. • Capital equipment-related services: ◦ Equipment service: Revenue from service of ClearPoint capital equipment and software previously sold to customers is based on agreements with terms ranging from one The Company may also enter into contracts with customers who own ClearPoint capital equipment, which bundle maintenance and support services and access to software and hardware upgrades made commercially available over the term of the contract, for a single contract price, typically paid on an annual basis. The Company allocates the contract price among the performance obligations based on the relative stand-alone prices for each such performance obligation and recognizes the revenue ratably on a monthly basis. In line with equipment service, a time-elapsed output method is used as the Company is providing a stand-ready service. ◦ Installation, training and shipping: Consistent with the Company’s recognition of revenue for capital equipment and software sales as described above, fees for installation, training and shipping in connection with sales of capital equipment and software that have been preceded by customer evaluation periods are recognized as revenue at the point in time the Company is in receipt of an executed purchase order for the equipment and software. Installation, training and shipping fees related to capital equipment and software sales not having been preceded by an evaluation period are recognized as revenue concurrent with the recognition of revenue of the related capital equipment. The Company operates in one industry segment, and the predominance of its sales are to U.S.-based customers. Payment terms under contracts with customers generally are in a range of 30-60 days after the customers’ receipt of the Company’s invoices. The Company’s terms and conditions do not provide for a right of return unless for: (a) product defects; or (b) other conditions subject to the Company’s approval. See Note 3 for additional information regarding revenue recognition.
Net Loss Per Share	Net Loss Per Share The Company computes net loss per share using the weighted-average number of common shares outstanding during the period. Basic and diluted net loss per share are the same because the conversion, exercise or issuance of all potential common stock equivalents, which comprise the entire amount of the Company’s outstanding common stock options and warrants, as described in Note 8, and the potential conversion of the First Closing Note, as described in Note 6, would be anti-dilutive, due to the reporting of a net loss for each of the periods in the accompanying condensed consolidated statements of operations.
Concentration Risks and Other Risks and Uncertainties	Concentration Risks and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company may at times invest its excess cash in interest bearing accounts and U.S. Treasury Bills. It classifies all highly liquid investments with original stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months but less than twelve months as short term investments. The Company classifies the U.S. Treasury Bills as held-to-maturity in accordance with ASC 320, "Investments - Debt and Equity Securities." Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity and are recorded at amortized cost on the accompanying condensed consolidated balance sheet, adjusted for the accretion of discounts using the interest method. The Company holds the remainder of its cash and cash equivalents on deposit with financial institutions in the U.S. insured by the Federal Deposit Insurance Corporation. At June 30, 2022, the Company had approximately $12.4 million in bank balances that were in excess of the insured limits. At June 30, 2022, there were two customers whose accounts receivable balances represented 18% and 11% of accounts receivable at that date. At December 31, 2021, one customer accounted for 15% of accounts receivable at that date. One pharmaceutical customer, a related party who is a stockholder, a noteholder, and who has a representative on the Company's Board of Directors (see Note 6), for whom the Company provides hardware, software, clinical services and market development services in support of the customer's clinical trials, and from whom the Company earns a quarterly fee, accounted for 14% and 21% of total sales in the three-month periods ended June 30, 2022 and 2021, respectively, and 16% and 19% of total sales in the six-month periods ended June 30, 2022 and 2021, respectively. There was an additional customer who comprised 11% of total sales in the three-month period ended June 30, 2022. Prior to granting credit, the Company performs credit evaluations of its customers’ financial condition, and generally does not require collateral from its customers. The Company will provide an allowance for doubtful accounts when collections become doubtful. The allowance for doubtful accounts at June 30, 2022 and December 31, 2021 was $0.2 million and $0.3 million, respectively. The Company is subject to risks common to emerging companies in the medical device industry, including, but not limited to: new technological innovations; acceptance and competitiveness of its products; dependence on key personnel; dependence on key suppliers; dependence on third-party collaboration, license and joint development partners; changes in general economic conditions and interest rates; protection of proprietary technology; compliance with changing government regulations; uncertainty of widespread market acceptance of products; access to credit for capital purchases by customers; and product liability claims. Certain components used in manufacturing have relatively few alternative sources of supply and establishing additional or replacement suppliers for such components cannot be accomplished quickly. The inability of any of these suppliers to fulfill the Company’s supply requirements may negatively impact future operating results.
Adoption of New Accounting Standard	Adoption of New Accounting Standard Effective January 1, 2021, the Company adopted, on a modified retrospective method of transition, the provisions of Accounting Standards Update No. 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (the “ASU”). The ASU is effective for public companies, other
Reclassifications	Reclassifications The accompanying consolidated statement of operations for the three and six months ended June 30, 2022 contains certain items formerly classified as sales and marketing expenses and research and development expenses that have been reclassified to cost of revenue. The accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2021 have been conformed to the 2022 presentation.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue from External Customers by Products and Services	Three Months Ended June 30, (in thousands) 2022 2021 Functional neurosurgery navigation and therapy Disposable products $ 1,798 $ 1,861 Services 375 — Subtotal – Functional neurosurgery navigation and therapy 2,173 1,861 Biologics and drug delivery Disposable products 1,225 450 Services 1,183 940 Subtotal – Biologics and drug delivery revenue 2,408 1,390 Capital equipment and software Systems and software products 434 52 Services 185 110 Subtotal – Capital equipment and software revenue 619 162 Total revenue $ 5,200 $ 3,413 Six Months Ended June 30, (in thousands) 2022 2021 Functional neurosurgery navigation and therapy Disposable products $ 3,661 $ 3,779 Services 750 — Subtotal – Functional neurosurgery navigation and therapy 4,411 3,779 Biologics and drug delivery Disposable products 2,075 1,364 Services 2,487 1,685 Subtotal – Biologics and drug delivery revenue 4,562 3,049 Capital equipment and software Systems and software products 884 382 Services 374 233 Subtotal – Capital equipment and software revenue 1,258 615 Total revenue $ 10,231 $ 7,443

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consists of the following as of June 30, 2022 and 2021: (in thousands) June 30, December 31, Raw materials and work in process $ 4,753 $ 2,718 Software licenses 210 210 Finished goods 1,676 2,010 Inventory, net, included in current assets 6,639 4,938 Software licenses – non-current 504 519 Total $ 7,143 $ 5,457

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Schedule of Notes Payable	Scheduled principal payments as of June 30, 2022 with respect to notes payable are summarized as follows: Year ending December 31, (in thousands) 2025 $ 10,000 Total scheduled principal payments 10,000 Less: Unamortized financing costs (135) Total $ 9,865

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Share-Based Compensation Expense	Share-Based Compensation Expense The Company records share-based compensation expense on a straight-line basis over the related vesting period and recognizes forfeitures as they occur. The following table sets forth share-based compensation expense included in general and administrative expense in the condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, (in thousands) (in thousands) 2022 2021 2022 2021 $880 $247 $1,779 $567
Schedule of Stock Option Activity	Stock option activity under all of the Company’s plans during the six months ended June 30, 2022 is summarized below: Stock Options Weighted-average Weighted-average Intrinsic Value (1) (in thousands) Outstanding at December 31, 2021 1,350,473 $ 10.10 Granted 147,723 $ 10.91 Exercised (1,000) $ 2.60 Forfeited or expired (75,723) $ 40.07 Outstanding at June 30, 2022 1,421,473 $ 8.59 6.6 $ 10,479 (1) Intrinsic value is calculated as the estimated fair value of the Company’s stock at the end of the related period less the option exercise price of in-the-money options.
Schedule of Restricted Stock Awards Activity	Restricted Stock Activity Restricted stock activity, which includes restricted stock awards ("RSA") and restricted stock unit awards ("RSU"), for the six months ended June 30, 2022 is summarized below: Restricted Stock Weighted - Average Outstanding at December 31, 2021 380,105 $ 10.41 Granted 447,175 $ 10.90 Vested (32,107) $ 10.01 Forfeited (22,991) $ 14.41 Outstanding at June 30, 2022 772,182 $ 10.25
Schedule of Common Stock Warrant Activity	Common stock warrant activity for the six months ended June 30, 2022 is as follows: Warrant Weighted-average Intrinsic Value (1) (in thousands) Outstanding at December 31, 2021 668,907 $ 2.97 Exercised (462,353) $ 2.20 Terminated (170,000) $ 2.20 Outstanding at June 30, 2022 36,554 $ 16.23 $ — (1) Intrinsic value is calculated as the estimated fair value of the Company’s stock at the end of the related period less the warrant exercise price of in-the-money warrants.

Description of the Business a_2

Description of the Business and Financial Condition (Details) $ in Thousands			1 Months Ended	6 Months Ended		12 Months Ended
	Feb. 23, 2021 USD ($) shares	Dec. 29, 2020 USD ($)	Jan. 31, 2020 USD ($)	Jun. 30, 2022 USD ($) company	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of pharmaceutical companies (more than) | company				45
Cumulative net loss				$ 142,194		$ 133,932
Net cash used in operations				9,250	$ 5,849	12,700
Secured convertible notes				9,865		$ 9,838
Public offering (in shares) | shares	2,127,660
Net proceeds from offering	$ 46,800			$ 0	$ 46,785
Security Purchase Agreement | 2020 Convertible Noteholders
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Secured convertible notes			$ 17,500
Term of secured notes			5 years
Security Purchase Agreement | 2020 Convertible Noteholders | One 2020 Convertible Noteholder
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from debt, net of issuance costs			$ 16,800
Security Purchase Agreement | Second Closing Note | One 2020 Convertible Noteholder
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Increase in secured convertible notes		$ 7,500
Security Purchase Agreement | 2020 Secured Notes | One 2020 Convertible Noteholder
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Additional rights, principal amount			$ 5,000

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021	Dec. 31, 2021 USD ($)
Product Information [Line Items]
Number of operating segments | segment			1
Cash, uninsured amount	$ 12.4		$ 12.4
Allowance for doubtful accounts	$ 0.2		$ 0.2		$ 0.3
Adjustments to additional paid in capital, convertible debt					$ 3.1
Accounts Receivable | Customer Concentration Risk | Customer 1
Product Information [Line Items]
Concentration risk, percentage			18%
Accounts Receivable | Customer Concentration Risk | Customer 2
Product Information [Line Items]
Concentration risk, percentage			11%
Accounts Receivable | Customer Concentration Risk | One Customer
Product Information [Line Items]
Concentration risk, percentage					15%
Revenue Benchmark | Customer Concentration Risk | Investor
Product Information [Line Items]
Concentration risk, percentage	14%	21%	16%	19%
Revenue Benchmark | Customer Concentration Risk | One Customer
Product Information [Line Items]
Concentration risk, percentage			11%
Minimum
Product Information [Line Items]
Estimated useful life (in years)			5 years
Term of service agreements (in years)			1 year
Payment terms (in days)	30 days		30 days
Maximum
Product Information [Line Items]
Term of service agreements (in years)			3 years
Payment terms (in days)	60 days		60 days

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 5,200	$ 3,413	$ 10,231	$ 7,443
Functional Neurosurgery Navigation and Therapy - Disposable Products
Disaggregation of Revenue [Line Items]
Total revenue	1,798	1,861	3,661	3,779
Functional Neurosurgery Navigation and Therapy - Services
Disaggregation of Revenue [Line Items]
Total revenue	375	0	750	0
Functional Neurosurgery Navigation and Therapy
Disaggregation of Revenue [Line Items]
Total revenue	2,173	1,861	4,411	3,779
Biologics and Drug Delivery - Disposable Products
Disaggregation of Revenue [Line Items]
Total revenue	1,225	450	2,075	1,364
Biologics and Drug Delivery - Services
Disaggregation of Revenue [Line Items]
Total revenue	1,183	940	2,487	1,685
Biologics and Drug Delivery
Disaggregation of Revenue [Line Items]
Total revenue	2,408	1,390	4,562	3,049
Capital Equipment and Software - Systems and Software Products
Disaggregation of Revenue [Line Items]
Total revenue	434	52	884	382
Capital Equipment and Software - Services
Disaggregation of Revenue [Line Items]
Total revenue	185	110	374	233
Capital Equipment and Software
Disaggregation of Revenue [Line Items]
Total revenue	$ 619	$ 162	$ 1,258	$ 615

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 5,200	$ 3,413	$ 10,231	$ 7,443
Minimum
Disaggregation of Revenue [Line Items]
Contract liabilities, service agreements, terms (in years)	1 year		1 year
Maximum
Disaggregation of Revenue [Line Items]
Contract liabilities, service agreements, terms (in years)	3 years		3 years
Capital Equipment Related Service Revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 100		$ 300
Remaining Performance Obligations Capital Equipment-Related Service Revenue
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation amount	$ 800		$ 800
Capital Equipment and Software-Related Service
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, percentage	53%		53%

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Cash and cash equivalents	$ 23,524	$ 54,109
Short-term investments	$ 21,613	$ 0

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials and work in process	$ 4,753	$ 2,718
Software licenses	210	210
Finished goods	1,676	2,010
Inventory, net, included in current assets	6,639	4,938
Software licenses – non-current	504	519
Total	$ 7,143	$ 5,457

Notes Payable - Narratives (Det

Notes Payable - Narratives (Details) $ / shares in Units, $ in Thousands				1 Months Ended
	Nov. 03, 2021 USD ($) $ / shares shares	Apr. 30, 2021 USD ($)	Jan. 29, 2020 USD ($) $ / shares	May 31, 2021 USD ($) shares	Jun. 30, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($)	Dec. 29, 2020 USD ($) $ / shares
Debt Instrument [Line Items]
Secured convertible notes					$ 9,865	$ 9,838
Security Purchase Agreement | First Closing Notes
Debt Instrument [Line Items]
Debt related commitment fees and debt issuance costs		$ 200
Security Purchase Agreement | First Closing Notes | Convertible Debt
Debt Instrument [Line Items]
Secured convertible notes					100	$ 200
Debt instrument, conversion price (in usd per share) | $ / shares			$ 6
Debt instrument, conversion amount				$ 7,500
Debt conversion, shares issued (in shares) | shares				1,256,143
Debt instrument, face amount			$ 17,500
Accrued interest included in the conversion of debt				$ 40
Debt instrument, basis spread on variable rate			2%
Debt instrument, variable interest rate			0.02
Security Purchase Agreement | Second Closing Note | Convertible Debt
Debt Instrument [Line Items]
Secured convertible notes	$ 3,100
Debt conversion, shares issued (in shares) | shares	773,446,000
Additional rights, principal amount			$ 5,000
Amount of accrued and paid-in-kind interest included in converted debt	$ 300
Share price (in usd per share) | $ / shares	$ 14.34
Security Purchase Agreement | Third Closing Note | Convertible Debt
Debt Instrument [Line Items]
Additional rights, principal amount			$ 10,000
Security Purchase Agreement | Investor | 2020 Convertible Notes | Convertible Debt
Debt Instrument [Line Items]
Secured convertible notes					$ 10,000
Debt instrument, conversion price (in usd per share) | $ / shares					$ 6
Security Purchase Agreement Amended | Second Closing Note | Convertible Debt
Debt Instrument [Line Items]
Debt instrument, conversion price (in usd per share) | $ / shares							$ 10.14
Debt instrument, face amount	$ 7,500						$ 7,500
Cash interest rate							2%
Payment in-kind interest rate							5%

Notes Payable - Maturities Of N

Notes Payable - Maturities Of Notes Payable (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Debt Disclosure [Abstract]
2025	$ 10,000
Total scheduled principal payments	10,000
Less: Unamortized financing costs	(135)
Total	$ 9,865

Leases (Details)

Leases (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) period	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) period	Jun. 30, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Lessee, operating lease, number of renewal periods | period	2		2
Lease cost | $	$ 0.1	$ 0.1	$ 0.3	$ 0.3
Office Lease - Irvine, California
Lessee, Lease, Description [Line Items]
Renew the lease for two additional periods	5 years		5 years
Lessee, operating lease, term of contract (in years)	5 years		5 years
Office Lease - Solana Beach, California
Lessee, Lease, Description [Line Items]
Renew the lease for two additional periods	5 years		5 years
Lessee, operating lease, term of contract (in years)	5 years		5 years

Stockholders_ Equity - Narrativ

Stockholders’ Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended
	Feb. 23, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 03, 2021
Subsidiary, Sale of Stock [Line Items]
Public offering (in shares)	2,127,660
Proceeds from public offering of common stock, net of offering costs	$ 46,800	$ 0	$ 46,785
Unrecognized compensation expense		$ 1,800
Weighted average period (in years)		2 years 2 months 12 days
Purchase plan, shares purchased (in shares)		26,354
Restricted Stock
Subsidiary, Sale of Stock [Line Items]
Unrecognized compensation expense		$ 6,600
Weighted average period (in years)		2 years 4 months 24 days
Employee Stock Purchase Plan
Subsidiary, Sale of Stock [Line Items]
Grant (in shares)				400,000
Purchase plan, per share weighted average price of shares purchased (in dollars per share)		$ 9.86
IPO
Subsidiary, Sale of Stock [Line Items]
Public offering (in shares)	2,127,660
Common stock initially offered at public offering (in shares)	1,850,140
Sale of stock, price per share (in dollars per share)	$ 23.50
Shares sold pursuant to exercise of underwriters option (in shares)	277,520
Price per share for underwriters option to purchase (in dollars per share)	$ 22.09
Proceeds from public offering of common stock, net of offering costs	$ 46,800

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Share Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Equity [Abstract]
Share-based compensation expense	$ 880	$ 247	$ 1,779	$ 567

Stockholders_ Equity - Schedule

Stockholders’ Equity - Schedule of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Stock Options
Outstanding, beginning balance (in shares) | shares	1,350,473
Granted (in shares) | shares	147,723
Exercised (in shares) | shares	(1,000)
Forfeited or expired (in shares) | shares	(75,723)
Outstanding, ending balance (in shares) | shares	1,421,473
Weighted-average Exercise price per share
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 10.10
Granted (in dollars per share) | $ / shares	10.91
Exercised (in dollars per share) | $ / shares	2.60
Forfeited or expired (in dollars per share) | $ / shares	40.07
Outstanding, ending balance (in dollars per share) | $ / shares	$ 8.59
Weighted-average Remaining Contractual Life (in years) and Intrinsic Value
Outstanding, at ending (in years)	6 years 7 months 6 days
Intrinsic value | $	$ 10,479

Stockholders_ Equity - Schedu_2

Stockholders’ Equity - Schedule of Restricted Stock Award Activity (Details) - Restricted Stock - $ / shares	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Restricted Stock
Outstanding, beginning balance (in shares)	772,182	380,105
Granted (in shares)	447,175
Vested (in shares)	(32,107)
Forfeited or expired (in shares)	(22,991)
Outstanding, ending balance (in shares)	772,182
Weighted - Average Grant Date Fair Value
Outstanding, beginning balance (in dollars per share)	$ 10.41
Granted (in dollars per share)	10.90
Vested (in dollars per share)	10.01
Forfeited or expired (in dollars per share)	14.41
Outstanding, ending balance (in dollars per share)	$ 10.25

Stockholders_ Equity - Schedu_3

Stockholders’ Equity - Schedule of Common Stock Warrant Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Weighted-average Exercise price per share
Beginning balance (in dollars per share) | $ / shares	$ 2.97
Exercised (in dollars per share) | $ / shares	2.20
Terminated (in dollars per share) | $ / shares	2.20
Ending balance (in dollars per share) | $ / shares	$ 16.23
Intrinsic Value
Outstanding, intrinsic value | $	$ 0
Common Stock Warrants
Restricted Stock
Outstanding, beginning balance (in shares) | shares	668,907
Exercised (in shares) | shares	(462,353)
Terminated (in shares) | shares	170,000
Outstanding, ending balance (in shares) | shares	36,554

Uncategorized Items - clpt-2022

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2020-06 [Member]