InvestorPresentation

3Q2017
 Stereotaxis
at a Glance

Global Leader in Endovascular Robotics

Focused on the Treatment of Cardiac Arrhythmias

Extensive Presence
300+ Physicians | 100+ Active Systems | 31 Countries

Validated & Protected

100,000+ Procedures | 250+ Publications | 100+ Issued Patents

Attractive Market
$4B+ Existing Market | 10-15% Annual Growth | No Robotic Competitor

Financial Highlights
$32m Sales | 82% Recurring Revenue | 77% Gross Margin *2016

$5.0m Cash and No Debt *6/30/2017

Market Cap ~$35m

2 Confidential
 Surgical Progress

Open Laparoscopic Endovascular

Open surgical incision used to access patient Use rods with cameras and surgical tools on Catheter inserted into blood vessel through
anatomy. Large incisions as surgeons hands, the distal ends to perform surgical operations one small incision and navigated through the
instruments and light must reach procedure through multiple small incisions. Reduced vascular system to procedure site. Functional
site. Significant trauma, risk and recovery. trauma. Increased skill and complexity. capabilities at tip perform procedure.

Less Invasive. Less Risk. Improved Patient Care.

Technological innovation has enabled various procedures to progress to less invasive surgery.
This progress shifts clinical practice but more importantly causes a significant overall increase
in the number of patients treated as reduced surgical risk and invasiveness increases access to therapy.

3 Confidential
 Endovascular
Surgery
TraditionalEndovascularSurgeryisWidelyUtilizedAcrossBroadClinicalApplications. butwithInherentLimitations.
Partial List of Multi-Billion Dollar
Endovascular Surgery Markets:
Clot Aspiration/Retrieval
& Endovascular Coils
Transcatheter Valves
Coronary Angioplasty & Stents
Cardiac Ablation
Endovascular Stent Grafts
Peripheral Vascular Stents,
Balloons and Atherectomy
4 Confidential
Mechanism of Action
Manipulation of the tip of the
catheter is accomplished in an
indirect inelegant fashion. Force is
transferred from the physicians
fingers/hands to the base of the
catheter and then over the entire
length of the catheter.
Limited Catheter
Precision, Reach and Stability
Reliance on X-Ray
Navigation and visualization of the
catheter in the vascular system is
accomplished using x-ray imaging.
Radiation Exposure to
Patients, Physicians and Staff
Catheter Design
In order to allow for the transfer of
force along its length, catheters
must be designed with rigid shafts
and internal pull wires.
Increased Catheter Rigidity
Reduces Patient Safety
Difficult & Complex
Performing endovascular surgeries
requires significant training and
skill. Procedures often take
significant amounts of time. Often
simple movements are difficult to
accomplish.
Complex Long Procedures,
Operator Dependent
 Robotics in Surgery

Thelastdecadehasseendramaticadoptionofrobotictechnologiesthataddressthelimitationsofopenandlaparoscopicsurgery.

Intuitive Surgical: Pioneered Robotics for Laparoscopic Surgery Manyothercompaniesspendinghundredsof

>4,000 Systems Installed and >750,000 Procedures in 2016 millionsofdollarstoparticipate:
Used in ~85% of US Prostatectomy and ~45% of US Hysterectomy
$36 Billion Valuation, $2.7 Billion 2016 Revenue

MAKO Surgical: Pioneered Robotics for Knee and Hip Arthroplasty

>400 Systems Installed, 86 Sold in 2016, 40% to Competitive Accounts
Acquired by Stryker for $1.65 Billion or ~16x Sales in 2013

Mazor Robotics: Pioneered Robotics for Spine Surgery

Strategic Collaboration with Medtronic in 2016
$1 Billion Valuation, ~$60 Million Revenue Expected in 2017

Twoobservations:
Roboticscapturedsignificantmarketsharedespitealackofmaterialclinicalsuperioritydata
RoboticsprovidesforDemocratizationofSkill:moresurgeonsenabledtoperformmoreproceduresmoreeffectively

Butthefieldofrobotictechnologiesforendovascularapplicationsissparse
5 Confidential
 Endovascular Robotics
Mechanisms of Action

Three Mechanisms of Action:

Robotic-lite
Description
The handle of a standard catheter is placed in a
mechanical grasper that is computer-controlled.
Examples
Stereotaxis V-Drive system for robotic control
of sheaths and ICE or Lasso catheters.
Corindus CorPath system for coronary stents.
Push
A computer-controlled catheter or sheath is
designed with additional pull-wires for
additional degrees of motion.
Hansens Sensei system for cardiac ablation.
Pull
A catheter with tiny magnets at the tip and with
no pull-wires or rigidity along the shaft is
robotically manipulated by modifying external
magnetic fields with a computer interface.
Stereotaxis Niobe system for cardiac ablation.

Comments
Relatively simple and inexpensive system can
be used with existing catheters. Does not
address the inherent limitations or expand the
capabilities of traditional catheters.
Increased navigational capabilities compared Control of a catheter directly at the tip allows
with traditional catheter. More rigid catheter for unmatched catheter precision, reach and
and increased size raises safety concerns. stability. Removal of pull-wires and shaft
rigidity creates a very safe catheter.

The pull mechanism of action is the most elegant in allowing for the
design and control of catheters in ways otherwise unachievable.
Stereotaxis is the only company that has developed a functional pull robotic system. The
system is robust with significant validation in >100,000 procedures at >100 hospitals.
The benefits of robotics can be combined in a synergistic and additive fashion with the
advances in mapping and manual ablation tip technology.
6 Confidential
 Cardiac Ablation
Market

Large Rapidly Growing

$4 Billion Existing Annual Sales 10-15% Annual Growth

Annualsalesofablationandmappingproductsused Consistent,longterm,robustgrowthdrivenbyclinical
incatheterbasedablationprocedures evidence,agingpopulationandimprovedtechnology

7 Confidential
 Setup of
Robotic Ablation
Robotic Magnetic
Navigation System
External computer controlled
permanent magnets create a
magnetic field within which a
catheter with a magnetic tip
can be precisely controlled.
8 Confidential
Physician Computer
Control Station
Physician sits at a control
station, views procedure data
on a large computer screen,
and uses a mouse/joystick to
perform the procedure.
Disposables &
Magnetic Catheter
A disposable device advances
and retracts a cardiac ablation
catheter with a magnetic tip
developed exclusively for our
robot by J&J.
Other Synergistic
Products
Nonmagnetic robot for
ancillary catheters. Large
screen displays for non
robotic rooms. Information
Systems.
 Current Benefits of
Robotic Ablation

Patient Physician Hospital

Safer Procedure: Health Benefits: Procedure Growth:
Gentle Catheter: lower perforations Radiation Reduction Improve Skill: Enable Difficult Cases
Radiation Reduction Orthopedic Injury: no lead vest Perform Procedures Not Possible with
Extend Career Manual Catheters
Effective Procedure: Competitive Differentiation
Catheter Precision, Reach & Stability Successful Procedures: Lab Efficiency: Complex Procedure
Consistent Catheter Contact Catheter Precision, Reach & Stability Time Reduced and Consistent
Focus on Essentials of Therapy
Pronounced Benefits In: Lower Complications Risk Reduction
Pediatric & Young Adults Democratization of Skill Health Benefits to Staff
Elderly Patient Safety
Frail Convenience:
Pregnant Seated and Unscrubbed Differentiation:
Complicated Anatomy Attracting Patients
Pronounced Benefits In Complex Cases: Attracting Staff
Improved Safety, Efficacy & Efficiency

Robust Clinical & Real-World Validation

250+ Peer-Reviewed Publications | 100,000+ Procedures Performed at Over 100 Hospitals by Hundreds of Physicians

9 Confidential
 Global Commercial
Presence
>9,000 Procedures Annually at >100 Hospitals by >300 Physicians

Europe
North America

Asia Pacific

~15 Person Direct Sales Team

Complemented by Distributors ~5 Person Direct Sales Team
>20 Person Direct Sales Team ~35 Active Hospitals Complemented by Distributors
>60 Active Hospitals >4,000 Procedures/Year ~10 Active Hospitals
>4,000 Procedures/Year ~1,000 Procedures/Year

10 Confidential
 Leadership in
Complex Procedures

Stereotaxis is the most effective, and sometimes only option,

for the most complicated ablation procedures.

The benefits of robotics are applicable across a broad range of

cardiac ablation procedures, but are pronounced in the most
complex procedures. The unmatched precision, reach and
stability of a magnetic catheter enables the effective treatment
of arrhythmias that otherwise could not be treated at all using
a manual catheter, or could not be treated effectively by the
vast majority of physicians. In ventricular arrhythmias,
congenital procedures, and certain other special situations,
Stereotaxis provides increased efficacy and efficiency in
combination with a first-in-class safety profile.

Stereotaxis identified complex arrhythmias as a beachhead

indication only recently. The market for these procedures is
large and significantly underpenetrated. The value provided in
these procedures is validated by many leading hospitals that
have recently adopted Stereotaxis for all of their ventricular
procedures and seen significant growth following adoption of
the technology.

11 Confidential
 Automation

Robotics is the only technology providing the opportunity for

fully automated ablation procedures.

Automation enables efficient patient-specific therapy.

Stereotaxis currently has functional automation software designed into its system. The
software allows for automated movement of the catheter to specific points, along defined
paths, and in preprogrammed motions. A plan is in place to methodically improve the
software towards reliable, reproducible and rapid automation. This would allow rapid
mapping using software as a replacement for expensive mapping catheters. It would also
allow efficient ablation in both the atrium and ventricle in a patient-specific
individualized fashion. Automation will be transformational for the EP field by enabling
physicians to focus on the planning and design of treatment rather than the physical
manipulation of a catheter. Only a robotic platform can allow for automation.

12 Confidential
 Cardiac Ablation
Market Outlook
Convergence & Differentiation
Ablation Market Convergence of Features
While the cardiac ablation market is highly attractive, the
challenge for companies operating in it over the coming
years will be maintaining differentiation and avoiding
commoditization.
The convergence of features is characterized by:
Ablation Catheters - the development of balloon-based
technologies for rapid pulmonary vein isolation, high-
flow and contact force sensing capability in single point
catheters, and tools for lesion prediction and assessment.
Mapping Systems - localization is being performed
using electric fields as well as an imbedded sensor, and
more rapid and detailed anatomic and electrical mapping
is being pursued using multi-electrode catheters.
13
Differentiation of Stereotaxis Technology
Robotics has a differentiated mechanism of action providing
additive clinical benefits to patients and physicians when
combined with manual technologies. Stereotaxis is the only
robotic EP company and significant barriers to entry exist.
The advances in manual technologies do not address four
key ways robotics provides meaningful differentiation:
Safety - Unmatched safety for patients and physicians.
Gentle catheter significantly reduces perforation risk.
Reduced radiation exposure to patients and physicians.
Reduced orthopedic injury to physicians.
Catheter Precision & Reach - Navigation of catheter
from the tip allows precise access to difficult to reach
anatomies, enabling otherwise impossible procedures.
Catheter Stability - Magnetic catheter maintains contact
with beating heart tissue at consistent force ensuring
effective lesions and maintained contact.
Automation - Robotics is the only technology that will
enable full automation of procedures, allowing
physicians to focus on designing and planning
individualized therapy of patients rather than mechanics
of catheter manipulation.
Confidential
 Primary Focus

Ensure Existing Customers Build Successful Robotic Ablation Practices

Sales &
Customer
Related

Training/Education Clinical Literature Clinical/Technical Support Market Development

R&D Robust innovation plan across key aspects of robotic cardiac ablation
&
BusDev Planting initial seeds for potential broader applications

14 Confidential
 Innovation Plan

3GuidingGoals:

1 2 3
Patient Physician Technology
Care Choice Availability

5CoreTechnologiesinRoboticAblationProcedure:

Navigation Software X-Ray Fluoroscopy Robotic System Ablation Catheter Mapping System

15 Confidential
 Financial Summary
& Commentary
Revenue
Robust and High Margin: >$30m annual revenue at >75% GM%
Recurring Revenue: ~85% of revenue is recurring at >80% GM%
Loyal & Sticky Customers and Revenue Model
No robotic competitor; Users long-term and loyal
Service contracts often multi-year terms
Diversification of Revenue: >100 customers; largest ~2% of revenue
Significant Growth Opportunities: ~1% share in $4B market
Market growing >10% per year; Only robotic option
Current revenue has no system replacement cycle or catheter
Balance Sheet
Clean Balance Sheet: $5.0m cash and no debt at 6/30/2017
Clean Liability Profile
No lawsuits. Top-tier service providers and clean financial,
regulatory, and compliance history. No IP disputes.
Guaranteed Future Revenue at High Margin
Multi-year service contracts provide assured future revenue/income
16
Profitability
Low Cash Utilization
~$700,000 negative free cash flow in 2Q17
Efficient Organization
Breakeven or positive free cash flow achievable with modest
increase in sales
Ownership
Financial Strength/Depth & Medical Device Experience/Expertise
DAFNA Capital, Mr. Joe Kiani, and limited partners of DAFNA
own majority of Stereotaxis following $24m investment late 2016
DAFNA Capital - $200 million assets managed, 18+ year track
record, focus on life sciences, >21% annualized net return
Mr. Joe Kiani - Founder, CEO, Chairman and largest shareholder
of Masimo, global leader in noninvasive patient monitoring. $4.5B
valuation, ~$350m net cash, >$700m sales, >$150m profit
Alignment of Interest
CEO and Board Members are majority shareholders of Stereotaxis
Confidential