Vicarious Surgical (RBOT)2024-11-12 22:00Financial Performance - The company reported net losses of $49,927,000 for the nine months ended September 30, 2024, compared to $57,960,000 for the same period in 2023, representing a 14% decrease in losses [121]. - Loss from operations prior to warrant adjustments was $51,577,000 for the nine months ended September 30, 2024, a 21% improvement from $65,125,000 in the prior year [121]. - Net cash used in operating activities was $38,168 for the nine months ended September 30, 2024, compared to $50,935 for the same period in 2023, reflecting a net loss of $49,297 [157]. - The company expects net losses to continue as it invests in commercialization and new product development, with current cash and short-term investments of $60,864 sufficient to support operations beyond the next twelve months [150]. Expenses - Research and Development (R&D) expenses decreased by $2,240,000, or 17%, to $10,800,000 for the three months ended September 30, 2024, compared to $13,040,000 in the same period of 2023 [132]. - Sales and Marketing (S&M) expenses decreased by $193,000, or 14%, to $1,208,000 for the three months ended September 30, 2024, from $1,401,000 in the prior year [133]. - General and Administrative (G&A) expenses decreased by $1,164,000, or 17%, to $5,747,000 for the three months ended September 30, 2024, compared to $6,911,000 in 2023 [135]. - Total operating expenses decreased by $13,548, or 21%, to $51,577 during the three months ended September 30, 2024, compared to $65,125 in the same period in 2023 [140]. - Research and development expenses decreased by $7,418, or 19%, to $31,692 during the nine months ended September 30, 2024, compared to $39,110 in the same period in 2023, mainly due to a 32% decrease in average headcount [141]. - Sales and marketing expenses decreased by $1,481, or 29%, to $3,546 during the nine months ended September 30, 2024, compared to $5,027 in the same period in 2023, primarily due to a 47% decrease in average headcount [142]. - General and administrative expenses decreased by $4,649, or 22%, to $16,339 during the nine months ended September 30, 2024, compared to $20,988 in the same period in 2023, largely due to a 43% decrease in average headcount [143]. Revenue and Market Potential - The company has not generated any revenue as of September 30, 2024, and does not expect to do so until FDA authorization is received for its product candidate [122]. - The company estimates that over 45 million soft tissue surgical procedures are addressable annually worldwide by its technology, with more than 50% currently performed using open surgery [112]. - The company plans to file a de novo application with the FDA for its Vicarious Surgical System for use in ventral hernia procedures as its first indication [116]. Cash and Investments - As of September 30, 2024, the company held cash and cash equivalents of $7,069 and short-term investments of $53,795, with an accumulated deficit of $182,009 [149]. - Net cash used by investing activities for the nine months ended September 30, 2024 was $7,587, compared to $50,828 for the same period in 2023, indicating a significant decrease of approximately 85.1% [160][161]. - Proceeds from sales and maturities of available-for-sale investments for the nine months ended September 30, 2024 were $45,182, while in 2023, they were $12,535, showing an increase of approximately 260.5% [160][161]. - Net cash provided by financing activities for the nine months ended September 30, 2024 was $2, a substantial decrease from $44,668 in 2023, reflecting a decline of approximately 99.99% [162][163]. Compliance and Regulatory - The company regained compliance with NYSE continued listing requirements as of July 26, 2024, with an average closing share price of at least $1.00 [119]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to adopt new accounting standards within the same time periods as private companies [169]. - The company takes advantage of reduced regulatory and reporting requirements as an emerging growth company, including exemptions from certain auditor attestation requirements [170]. - The company is not required to provide quantitative and qualitative disclosures about market risk as it qualifies as a smaller reporting company [171]. Warrant Liabilities - The change in fair value of warrant liabilities resulted in a $415 loss during the nine months ended September 30, 2024, due to remeasurement of warrant liabilities [144]. - The company recognizes warrant liabilities at fair value, which are subject to re-measurement at each balance sheet date until exercised, impacting the statement of operations [165]. - The company estimates the volatility of its warrants based on implied volatility from Public Warrants and historical volatility of peer companies, which influences the fair value calculations [166].