13D Filing: DAFNA Capital Management and Stereotaxis Inc. (STXS)

The Preferred Stock bears dividends at a rate of six percent (6.0%) per annum, which are cumulative and accrue
daily from the date of issuance on the $1,000 stated value. Such dividends will not be paid in cash, except in connection with any liquidation, dissolution or winding up of the Company or any redemption of the Preferred Stock. Instead, the value of
the accrued dividends is added to the liquidation preference of the Preferred Stock and will increase the number of shares of common stock issuable upon conversion (The Common Stock Dividend Accrual).

As of the date of this filing, if the Beneficial Ownership Limitation were waived or removed, and after accounting for the Common Stock Dividend Accrual, the
Reporting Persons would be entitled to receive about 13,364,103 shares issuable upon conversion of the Preferred Stock and an aggregate of 1,041,357 shares of Common Stock issuable upon exercise of the Warrants held by the Funds.

Item 7. Material to Be Filed as Exhibits

The following exhibits
will be added to Item 7:

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