Production and Commercialization - Sarcos Technology and Robotics Corporation plans to begin initial production of commercial units for the Guardian XT and Sapien 6M by the end of 2022, with deliveries expected in early 2023[119]. - Customer interest in the Guardian XO, Guardian XT, and Sapien units has been noted, although these products are not yet commercially available[124]. - The commercialization of the Guardian XO has been delayed due to prioritization of the Guardian XT and Sapien 6M products, with initial production of the Guardian XO now anticipated in the second half of 2023[119]. - The company expects to manufacture between 300 to 500 units of its products in 2023, depending on the mix, but does not anticipate using all of that capacity[126]. - The company plans to offer its Guardian XO and Guardian XT primarily through a RaaS subscription model, which may lower upfront costs and enhance market adoption[125]. Financial Performance - Revenue for the three months ended June 30, 2022, increased by $1.9 million, or 166%, to $3.0 million compared to $1.1 million for the same period in 2021[130]. - Revenue from research and development services rose by $2.0 million, or 190%, from $1.0 million in Q2 2021 to $3.0 million in Q2 2022, primarily due to the inclusion of RE2 revenues[131]. - Revenue for the six months ended June 30, 2022, increased by $0.8 million, or 29%, to $3.8 million compared to $2.9 million for the same period in 2021[143]. - Product revenue for the six months ended June 30, 2022, decreased by $0.2 million, or 79%, to $0.1 million compared to $0.3 million in the same period in 2021[145]. Operating Expenses - Total operating expenses for the three months ended June 30, 2022, increased by $23.2 million, or 263%, to $32.0 million compared to $8.8 million in Q2 2021[133]. - Total operating expenses increased by $42.6 million, or 270%, from $15.8 million in the first half of 2021 to $58.4 million in the first half of 2022[146]. - Cost of revenue surged by $2.5 million, or 365%, from $0.7 million in Q2 2021 to $3.1 million in Q2 2022, driven by increased labor and material costs[134]. - Cost of revenue rose by $1.8 million, or 94%, from $1.9 million in the first half of 2021 to $3.6 million in the first half of 2022, primarily due to increased labor and material costs[147]. - General and administrative expenses increased by $15.2 million, or 521%, from $2.9 million in Q2 2021 to $18.1 million in Q2 2022, largely due to stock-based compensation[136]. - General and administrative expenses surged by $30.7 million, or 586%, from $5.2 million in the first half of 2021 to $35.9 million in the first half of 2022, largely due to stock-based compensation[149]. - Sales and marketing expenses rose by $3.0 million, or 164%, from $1.8 million in the first half of 2021 to $4.8 million in the first half of 2022, influenced by increased professional service fees and headcount[150]. Cash Flow and Financing - Net cash used in operating activities increased by $14.3 million, or 104%, from $13.7 million in the first half of 2021 to $27.9 million in the first half of 2022[164]. - Net cash used in investing activities rose by $107.6 million, or 4,715%, from $2.3 million in the first half of 2021 to $109.9 million in the first half of 2022, primarily due to the purchase of marketable securities and the RE2 acquisition[166]. - As of June 30, 2022, the company had $152.8 million in cash, cash equivalents, and marketable securities, which is expected to support operations for at least the next 12 months[158]. - The company anticipates seeking additional financing to bolster cash reserves and support working capital requirements, especially prior to achieving positive operating cash flows[161]. Strategic Initiatives - The company is focusing on a Robot-as-a-Service (RaaS) subscription model for its products, although no RaaS agreements are currently in place[111]. - The company is leveraging a multi-generational product roadmap to maximize near-term revenue potential from its robotic systems[110]. - Integration with RE2 is in early stages, with potential risks that could affect product development and commercialization timelines[123].
Sarcos Technology and Robotics (STRC) - 2022 Q2 - Quarterly Report