Product Development and Commercialization - Sarcos Technology and Robotics Corporation has prioritized the commercialization of the Guardian XT and Sapien 6M products, which are expected to maximize near-term revenue potential [116]. - Initial production of commercial units for the Sapien 6M began in Q3 2022, with the Guardian XT expected to start production by the end of 2022, aiming for delivery in the first half of 2023 [125]. - The company expects to begin initial production of the Guardian XO in the second half of 2023, subject to potential delays due to supply chain challenges [126]. - Customer interest has been noted for the Guardian XO and Guardian XT, although these units are not yet commercially available, indicating unproven market demand [130]. - The company plans to offer its robotic systems primarily through a Robot-as-a-Service (RaaS) model, which includes ongoing maintenance and support [117]. Financial Performance - Revenue for the three months ended September 30, 2022, increased by $3.5 million, or 313%, to $4.7 million compared to $1.1 million for the same period in 2021 [137]. - Revenue from research and development services rose by $3.8 million, or 547%, from $0.7 million in Q3 2021 to $4.5 million in Q3 2022, primarily due to contributions from RE2 [138]. - Product revenue decreased by $0.3 million, or 59%, from $0.4 million in Q3 2021 to $0.2 million in Q3 2022, reflecting minimal sales of legacy products [139]. - Revenue for the nine months ended September 30, 2022, increased by $4.4 million, or 108%, to $8.4 million compared to $4.1 million for the same period in 2021 [149]. - Revenue from research and development services for the nine months ended September 30, 2022, increased by $4.9 million, or 147%, to $8.2 million compared to $3.3 million in 2021 [150]. Operating Expenses - Total operating expenses for Q3 2022 were $31.9 million, a decrease of $9.7 million, or 23%, from $41.6 million in Q3 2021 [140]. - Research and development expenses increased by $6.0 million, or 132%, from $4.5 million in Q3 2021 to $10.5 million in Q3 2022, driven by increased headcount and third-party service costs [142]. - General and administrative expenses decreased by $19.2 million, or 57%, from $33.9 million in Q3 2021 to $14.6 million in Q3 2022, mainly due to reduced stock-based compensation [143]. - Total operating expenses for the nine months ended September 30, 2022, were $90.3 million, an increase of $32.9 million, or 57%, from $57.4 million in 2021 [153]. - Research and development expenses increased by $12.5 million, or 110%, from $11.4 million for the nine months ended September 30, 2021, to $23.9 million for the nine months ended September 30, 2022 [155]. - General and administrative expenses increased by $11.5 million, or 29%, from $39.1 million for the nine months ended September 30, 2021, to $50.6 million for the nine months ended September 30, 2022 [156]. - Sales and marketing expenses increased by $3.1 million, or 75%, from $4.1 million for the nine months ended September 30, 2021, to $7.2 million for the nine months ended September 30, 2022 [158]. Cash Flow and Financing - Sarcos Technology and Robotics Corporation believes it has sufficient capital to fund operations for at least the next 12 months but plans to seek additional financing to bolster cash reserves [127]. - Net cash used in operating activities increased by $23.5 million to $44.4 million for the nine months ended September 30, 2022, from $20.9 million in the same period in 2021 [170]. - Net cash used in investing activities increased by $146.4 million to $149.4 million for the nine months ended September 30, 2022, from $3.0 million in the prior year [172]. - Net cash provided by financing activities decreased by $238.6 million, primarily due to the absence of cash proceeds from the Business Combination and PIPE Financing in 2022 [173]. - As of September 30, 2022, the company had $135.4 million in cash, cash equivalents, and marketable securities, which is expected to support operations for at least the next 12 months [164]. Supply Chain and Market Conditions - Supply chain disruptions, partly due to the COVID-19 pandemic, have impacted the availability of components and materials, affecting production timelines [121]. - Revenue is currently derived mainly from development and sales contracts rather than subscription arrangements, with no existing RaaS subscription agreements [117]. - The acquisition of RE2 on April 25, 2022, involved a payment of approximately $30 million in cash and the issuance of about 10.8 million shares of Common Stock [128]. - The company anticipates significant increases in both capital and operating expenditures to support product development, manufacturing, and personnel recruitment [118].
Sarcos Technology and Robotics (STRC) - 2022 Q3 - Quarterly Report