Revenue Performance - Revenue for the three months ended March 31, 2024, increased by $1.1 million, or 50%, to $3.4 million compared to $2.3 million for the same period in 2023[106] - Product development contract revenue decreased by $1.4 million, or 62%, from $2.3 million in Q1 2023 to $0.9 million in Q1 2024, primarily due to the completion of certain contracts[108] - Revenue from product sales increased by $2.6 million in Q1 2024, attributed mainly to legacy product sales[109] AI/ML Software Platform - The AI/ML Software Platform is expected to be ready for initial customer testing by June 2024, with revenue generation anticipated in 2025[97] - The AI/ML Software Platform is designed to be hardware agnostic, compatible with most industrial robots, enhancing operational efficiency[97] - The company is focusing on its AI/ML Software Platform, suspending the development of hardware products due to limited resources[98] - The market demand for the AI/ML Software Platform remains unproven, with risks related to customer adoption and pricing strategies[102] Operating Expenses - Total operating expenses decreased by $14.7 million, or 58%, from $25.5 million in Q1 2023 to $10.8 million in Q1 2024[110] - Research and development expenses fell by $6.5 million, or 69%, from $9.4 million in Q1 2023 to $2.9 million in Q1 2024, primarily due to reduced labor costs[112] - General and administrative expenses decreased by $4.6 million, or 47%, from $9.7 million in Q1 2023 to $5.1 million in Q1 2024, mainly due to lower labor-related expenses[113] - Sales and marketing expenses dropped by $2.9 million, or 78%, from $3.7 million in Q1 2023 to $0.8 million in Q1 2024, attributed to reduced professional service fees[114] Cash Flow and Liquidity - Net cash used in operating activities improved by $12.9 million, or 64%, from $20.1 million in Q1 2023 to $7.2 million in Q1 2024[126] - Net cash provided by investing activities increased by $5.6 million, or 54%, from $10.3 million in Q1 2023 to $15.9 million in Q1 2024[128] - As of March 31, 2024, the company had $31.8 million in cash, cash equivalents, and marketable securities, sufficient to support operations for at least the next 12 months[120] - The company believes it has sufficient liquidity to operate for at least the next twelve months without needing additional capital[101] - The company may need to seek additional financing to support working capital requirements and potential acquisitions, which could impact its financial condition[122] External Factors - Geopolitical and macroeconomic factors, including inflation and international conflicts, could significantly impact the company's operations and demand for its products[105] Backlog - The backlog as of March 31, 2024, was $4.2 million, with a total estimated contract value of $14.1 million[119] Workforce Management - The company has implemented reductions in force in July and November 2023 to conserve cash and manage operating expenses[101]
Sarcos Technology and Robotics (STRC) - 2024 Q1 - Quarterly Report