Revenue Growth - Revenue increased by $1.6 million, or 209%, from $0.7 million for the three months ended March 31, 2022, to $2.3 million for the three months ended March 31, 2023[114]. - Product Development Contract Revenue rose to $2.296 million in Q1 2023, compared to $733,000 in Q1 2022, reflecting a 213% increase[114]. - Product development contract revenue increased by $1.6 million, or 213%, from $0.7 million in Q1 2022 to $2.3 million in Q1 2023, primarily due to revenue from contracts acquired in the RE2 acquisition[115][116]. Production and Capacity - The company began initial production of commercial units of the Guardian XM in September 2022 and the Guardian XT in December 2022[106]. - The company expects to manufacture between 300 to 500 systems in 2023, although it does not anticipate using all of that capacity[110]. Acquisitions - The acquisition of RE2, Inc. was completed on April 25, 2022, and its financial results are included from the acquisition date through March 31, 2023[108]. Business Model - The company plans to offer its systems primarily through a sales business model with one-time upfront payments, along with software upgrades and add-on hardware components[99]. Financial Position - The company has sufficient capital to fund operations for at least the next 12 months without seeking additional capital[107]. - As of March 31, 2023, the company had $94.7 million in cash, cash equivalents, and marketable securities, expected to support operations for at least the next 12 months[126]. - The company may seek additional financing to support operations and capital expenditures, particularly as it aims to achieve positive operating cash flows by 2025[128][129]. Research and Development - The company is focused on maintaining its leading position in the robotic systems industry through continuous investment in research and development[111]. - Research and development expenses rose by $3.5 million, or 60%, from $5.9 million in Q1 2022 to $9.4 million in Q1 2023, driven by increased labor and overhead costs[120]. Operating Expenses - Total operating expenses decreased by $888,000, or 3%, from $26.4 million in Q1 2022 to $25.5 million in Q1 2023, with significant changes in various expense categories[118]. - General and administrative expenses decreased by $8.1 million, or 45%, from $17.8 million in Q1 2022 to $9.7 million in Q1 2023, mainly due to reduced stock-based compensation[121]. - Sales and marketing expenses increased by $1.5 million, or 69%, from $2.2 million in Q1 2022 to $3.7 million in Q1 2023, attributed to higher professional service fees and additional headcount[123]. Cash Flow - Net cash used in operating activities increased by $7.7 million to $20.1 million in Q1 2023 from $12.5 million in Q1 2022, primarily due to a higher net loss and changes in operating assets and liabilities[132]. - Cash provided by investing activities increased by $10.9 million, mainly due to $10.7 million from maturities of marketable securities during Q1 2023[133]. Market Challenges - The company is facing supply chain challenges due to the COVID-19 pandemic, which may impact its ability to meet production timelines[102]. - Geopolitical and macro-economic factors, such as inflation and rising interest rates, could significantly impact demand for the company's products[112].
Sarcos Technology and Robotics (STRC) - 2023 Q1 - Quarterly Report