MAKO Surgical Corp.

CIK:0001411861|SEC Filings

Condensed Statements Of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue:
Procedures	$ 16,224	$ 12,042	$ 47,438	$ 36,622
Systems	2,695	14,413	17,425	28,467
Service	3,843	2,722	10,933	7,402
Total revenue	22,762	29,177	75,796	72,491
Cost of revenue:
Procedures	4,139	6,226	15,755	12,001
Systems	1,773	5,453	7,353	10,697
Service	522	295	1,306	1,127
Total cost of revenue	6,434	11,974	24,414	23,825
Gross profit	16,328	17,203	51,382	48,666
Operating costs and expenses:
Selling, general and administrative (exclusive of depreciation and amortization)	22,556	19,794	64,535	57,953
Research and development (exclusive of depreciation and amortization)	6,235	4,973	16,881	15,071
Merger transaction expenses	6,611		6,611
Depreciation and amortization	2,174	1,787	6,323	5,244
Total operating costs and expenses	37,576	26,554	94,350	78,268
Loss from operations	(21,248)	(9,351)	(42,968)	(29,602)
Other income (expense), net	(8)	2,842	(7,621)	2,867
Loss before income taxes	(21,256)	(6,509)	(50,589)	(26,735)
Income tax expense		45	15	84
Net loss	$ (21,256)	$ (6,554)	$ (50,604)	$ (26,819)
Net loss per share - Basic and diluted	$ (0.45)	$ (0.15)	$ (1.08)	$ (0.64)
Weighted average common shares outstanding - Basic and diluted	47,036	42,306	46,926	42,054

Condensed Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Operating activities:
Net loss	$ (50,604)	$ (26,819)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	5,395	4,281
Amortization of intangible assets	1,357	1,269
Stock-based compensation	8,972	10,418
Provision for inventory reserve	4,549	3,262
Amortization of premium on investment securities	209	297
Loss on asset impairment	2,465	828
Provision for doubtful accounts	337	245
Issuance of stock under development agreement	1,361	681
Non-cash changes under credit facility	7,608	(3,204)
Changes in operating assets and liabilities:
Accounts receivable	5,670	939
Inventory	(6,101)	(10,568)
Deferred cost of revenue	(381)	(384)
Prepaid and other current assets	(1,323)	(2,540)
Other assets	(4)	(37)
Accounts payable	(1,231)	(1,734)
Accrued compensation and employee benefits	520	(5,287)
Other accrued liabilities	7,374	(2,545)
Deferred revenue	(179)	3,215
Net cash used in operating activities	(14,006)	(27,683)
Investing activities:
Purchase of investments	(59,219)	(3,159)
Proceeds from sales and maturities of investments	27,541	30,813
Acquisition of property and equipment	(5,272)	(7,325)
Acquisition of intangible assets	(998)	(65)
Net cash provided by (used in) investing activities	(37,948)	20,264
Financing activities:
Payment under credit facility (Note 8)	(1,000)
Proceeds from employee stock purchase plan	1,241	1,344
Exercise of common stock options and warrants for cash	3,441	3,989
Payment of payroll taxes relating to vesting of restricted stock	(156)	(172)
Net cash provided by financing activities	3,526	5,161
Net decrease in cash and cash equivalents	(48,428)	(2,258)
Cash and cash equivalents at beginning of period	61,367	13,438
Cash and cash equivalents at end of period	12,939	11,180
Non-cash investing and financing activities:
Receipt of 13,110 and 4,556 shares of common stock delivered in payment of payroll taxes for the nine months ended September 30, 2013 and 2012, respectively	156	172
Transfers of inventory to property and equipment	2,043	2,273
Issuance of stock under development agreement	1,361	681
Reclassification of warrants under credit facility (Note 8)	$ 8,029

Condensed Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 12,939,000	$ 61,367,000
Short-term investments	39,938,000	11,899,000
Accounts receivable, net of allowances of $703 and $381, at September 30, 2013 and December 31, 2012, respectively	16,382,000	22,389,000
Inventory	24,589,000	25,080,000
Deferred cost of revenue	1,348,000	967,000
Financing commitment asset (Note 8)		7,608,000
Prepaids and other current assets	3,295,000	1,972,000
Total current assets	98,491,000	131,282,000
Long-term investments	3,403,000
Cost method investment (Note 4)	4,181,000	4,181,000
Property and equipment, net	22,451,000	22,996,000
Intangible assets, net	5,298,000	5,657,000
Other assets	2,790,000	2,786,000
Total assets	136,614,000	166,902,000
Current liabilities:
Accounts payable	1,036,000	2,267,000
Accrued compensation and employee benefits	4,818,000	4,298,000
Other accrued liabilities	15,101,000	8,727,000
Deferred revenue	9,839,000	9,973,000
Warrant liability	8,029,000
Total current liabilities	38,823,000	25,265,000
Deferred revenue, non-current	755,000	800,000
Total liabilities	39,578,000	26,065,000
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.001 par value; 27,000,000 authorized; 0 shares issued and outstanding as of September 30, 2013 and December 31, 2012
Common stock, $0.001 par value; 135,000,000 authorized; 47,189,076 and 46,601,252 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively	47,000	47,000
Additional paid-in capital	369,194,000	362,364,000
Accumulated deficit	(272,180,000)	(221,576,000)
Accumulated other comprehensive income (loss)	(25,000)	2,000
Total stockholders' equity	97,036,000	140,837,000
Total liabilities and stockholders' equity	$ 136,614,000	$ 166,902,000