Vicarious Surgical (US:RBOT)2025-05-12 21:00PART I: FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) Unaudited Q1 2025 financials show a $15.4 million net loss, reduced cash, and substantial doubt about going concern Condensed Consolidated Balance Sheets Total assets decreased to $55.1 million by March 31, 2025, driven by reduced cash and investments Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,599 | $9,737 | | Short-term investments | $34,763 | $39,360 | | Total Assets | $55,052 | $67,719 | | Total Liabilities | $20,976 | $21,021 | | Total Stockholders' Equity | $34,076 | $46,698 | Condensed Consolidated Statements of Operations Q1 2025 net loss improved to $15.4 million from $17.0 million in Q1 2024 Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Income Statement Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Research and development | $9,415 | $9,968 | | General and administrative | $5,291 | $5,000 | | Total operating expenses | $15,747 | $16,109 | | Loss from operations | $(15,747) | $(16,109) | | Net loss | $(15,394) | $(17,001) | | Net loss per share, basic and diluted | $(2.60) | $(2.90) | Condensed Consolidated Statements of Cash Flows Net cash used in operations improved to $11.8 million in Q1 2025, with total cash decreasing by $7.1 million Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,768) | $(14,458) | | Net cash provided by (used in) investing activities | $4,613 | $(144) | | Net cash provided by financing activities | $17 | $2 | | Change in cash, cash equivalents and restricted cash | $(7,138) | $(14,600) | Notes to the Condensed Consolidated Financial Statements Notes highlight pre-revenue status, going concern doubt, 1-for-30 reverse stock split, and stock-based compensation - The company is developing a surgical robotic system and has not yet generated any revenue, with an accumulated deficit of $211.3 million as of March 31, 20252829 - Management concluded there is substantial doubt about the company's ability to continue as a going concern, as cash, cash equivalents, and short-term investments of $37.4 million are not sufficient to fund operations for the next 12 months, and the company is actively pursuing additional financing30 - On June 12, 2024, the company effected a 1-for-30 reverse stock split of its Class A and Class B common stock, with all share and per-share data retroactively adjusted3778 - Total stock-based compensation expense was $2.8 million for the three months ended March 31, 2025, down from $3.1 million in the prior-year period95 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses pre-revenue status, NYSE non-compliance, Q1 2025 net loss, and going concern issues - The company is developing a single-port surgical robot to address limitations of current open and robot-assisted surgeries, targeting a market of over 45 million annual soft tissue procedures worldwide107108 - On April 10, 2025, the company received a notice from the NYSE for non-compliance with the minimum market capitalization standard, as its average market cap fell below $50 million while stockholders' equity was also below $50 million, and the company intends to submit a compliance plan112 - The company's cash, cash equivalents, and short-term investments of $37.4 million as of March 31, 2025, are expected to fund operations into the first quarter of 2026, raising substantial doubt about the company's ability to continue as a going concern131 - The company has a universal shelf registration statement on Form S-3, allowing it to raise up to $400 million, which includes an "at-the-market" equity program, though no shares were sold under this program in Q1 2025 or 2024134 Results of Operations Q1 2025 operating expenses decreased by 2% to $15.7 million, with R&D and S&M down, and G&A up Comparison of Operating Expenses (in thousands) | Operating Expense | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Research and development | $9,415 | $9,968 | $(553) | (6)% | | Sales and marketing | $1,041 | $1,141 | $(100) | (9)% | | General and administrative | $5,291 | $5,000 | $291 | 6% | | Total operating expenses | $15,747 | $16,109 | $(362) | (2)% | - The decrease in R&D expenses was primarily due to a $658 thousand reduction in personnel-related costs, driven by a 6% decrease in average R&D headcount124 - The increase in G&A expenses was mainly due to a $374 thousand rise in professional fees, partially offset by a $112 thousand decrease in insurance expenses126 Liquidity and Capital Resources Cash of $37.4 million as of March 31, 2025, is insufficient for 12 months, raising going concern doubt - The company's cash, cash equivalents, and short-term investments balance of $37,362 thousand as of March 31, 2025, is not believed to be sufficient to support operations for the next 12 months131 - The company expects its current cash to be sufficient to support operations into the first quarter of 2026131 - Net cash used in operating activities decreased to $11.8 million in Q1 2025 from $14.5 million in Q1 2024136137138 - The company will need to obtain substantial additional funding to complete clinical trials, obtain market authorization, and commercialize the Vicarious Surgical System133 Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, the company is exempt from market risk disclosures - As a smaller reporting company, Vicarious Surgical is not required to provide quantitative and qualitative disclosures about market risk149 Controls and Procedures Material weaknesses in internal controls persisted through Q1 2025, rendering disclosure controls ineffective; remediation is ongoing - Material weaknesses in internal control over financial reporting were identified, including issues with segregation of duties, IT controls, risk assessment, and monitoring of control processes150 - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were not effective as of March 31, 2025152 - Remediation efforts include hiring additional experienced personnel and implementing enhanced review controls and processes151155 PART II: OTHER INFORMATION Legal Proceedings The company is not currently involved in any material pending legal proceedings - As of the filing date, the company is not party to any material pending legal proceedings157 Risk Factors Significant risk factors include NYSE non-compliance due to minimum market capitalization failure, risking delisting - On April 10, 2025, the company received a notice from the NYSE for non-compliance with the minimum market capitalization standard, as its average market cap and stockholders' equity both fell below $50 million159 - The company must submit a compliance plan to the NYSE; if the plan is not accepted or if compliance is not regained within the cure period, the company's stock will be subject to delisting procedures160 - Potential delisting could result in limited market quotations, reduced stock liquidity, less news and analyst coverage, and a decreased ability to obtain future financing161164 Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales or repurchases of equity securities occurred during the quarter - The company did not have any unregistered sales of equity securities in the period161 - The company did not repurchase any of its equity securities during the three months ended March 31, 2025162 Defaults Upon Senior Securities There were no defaults upon senior securities - There were no defaults upon senior securities163 Mine Safety Disclosures This item is not applicable to the company - This item is not applicable to the company165 Other Information No Rule 10b5-1 trading plans were adopted or terminated by directors or officers during the quarter - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the three months ended March 31, 2025166 Exhibits The report includes filed exhibits such as agreements and required CEO/CFO certifications