• uncertainty of regulatory actions and marketing approvals or certifications;

• reliance on a network of international distributors and a network of

• levels of coverage and reimbursement by government or other third-party

payors for procedures using our products;

• patients' willingness and ability to pay for procedures with significant

costs not covered by or reimbursable through government or other third-party

• the ongoing impact of the COVID-19 pandemic and all safety requirements and

suggestions regarding patient treatment as required or suggested by health

• clearance or certification by regulatory agencies, including the FDA, or

notified bodies for our ALLY System;

• supply chain shortages and price increases resulting from the COVID-19

We cannot provide assurance that we will generate significant revenues or achieve and sustain profitability in the future. In addition, we can provide no assurance that we will have sufficient funding to meet our future capital requirements.

As a result of these and other factors, our historical results are not necessarily indicative of future performance, and any interim results we present are not indicative of the results that may be expected for the full fiscal year.

Components of Our Results of Operations

Total cost of revenue comprises cost of product revenue, cost of lease revenue and cost of service revenue.

Selling, General and Administrative Expense

Our selling, general and administrative expenses consist primarily of personnel costs, such as salaries and wages, including stock-based compensation and benefits, professional fees, marketing, insurance, travel and other expenses.

Comparison of the Three and Six Months Ended June 30, 2022 and 2021

Three Months Ended June 30, 2022 compared with Three Months Ended June 30, 2021

Total revenue for the three months ended June 30, 2022 increased by $0.1 million, or 1%, compared to the three months ended June 30, 2021.

Service revenue for the three months ended June 30, 2022 increased by $0.2 million, or 23%, compared to the three months ended June 30, 2021.

Lease revenue for the three months ended June 30, 2022 increased by $0.3 million, or 24%, compared to the three months ended June 30, 2021.

Six Months Ended June 30, 2022 compared with Six Months Ended June 30, 2021

Total revenue for the six months ended June 30, 2022 increased by $2.4 million, or 16%, compared to the six months ended June 30, 2021.

Service revenue for the six months ended June 30, 2022 increased by $0.4 million, or 24%, compared to the six months ended June 30, 2021 primarily due to the increased number of systems installed.

Lease revenue for the six months ended June 30, 2022 increased by $0.6 million, or 25%, compared to the six months ended June 30, 2021.

Three Months Ended June 30, 2022 compared with Three Months Ended June 30, 2021

Total cost of revenue for the three months ended June 30, 2022 decreased by $0.3 million, or 9%, compared to the three months ended June 30, 2021.

Six Months Ended June 30, 2022 compared with Six Months Ended June 30, 2021

Total cost of revenue for the six months ended June 30, 2022 increased by $1.2 million, or 18%, compared to the six months ended June 30, 2021.

Three Months Ended June 30, 2022 compared with Three Months Ended June 30, 2021

Amortization of Intangible Assets. Amortization of intangible assets was $0.3 million for the three months ended June 30, 2022, consistent with the three months ended June 30, 2021.

Six Months Ended June 30, 2022 compared with Six Months Ended June 30, 2021

As discussed above, the ongoing COVID-19 pandemic has negatively affected our capital requirements and more operating capital may be needed to fund our operations in the future.

Our liquidity needs will be largely determined by the success of our operations regarding the successful commercialization of our existing products and the launch of the ALLY System in the future.

The following table summarizes, for the periods indicated, selected items in our condensed statements of cash flows:

Net cash (used in) provided by financing activities (988 ) 170 Net decrease in cash and cash equivalents

Net cash used in investing activities for the six months ended June 30, 2022 was $56,000, which consisted primarily of capital expenditures for property and equipment.

Total unrecognized stock-based compensation expense $ 9,101

As of June 30, 2022, we did not have any off-balance sheet arrangements, as defined under Regulation S-K, Item 303(a)(4)(ii).

See Note 2, Summary of Significant Accounting Policies, to our unaudited condensed financial statements included in this Quarterly Report for a discussion of recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted as of June 30, 2022.

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