Vicarious Surgical (US:RBOT)2023-11-14 01:05Financial Data and Key Metrics Changes - Total operating expenses for Q3 2023 were $21.4 million, down from $22.2 million in Q3 2022 [10] - GAAP net loss for Q3 2023 was $15.7 million, or $0.10 per share, compared to a net loss of $24.7 million, or $0.20 per share in the prior year [11] - Adjusted net loss for Q3 2023 was $20.4 million, or $0.12 per share, compared to an adjusted net loss of $21.7 million, or $0.18 per share in the prior year [11] - Cash, cash equivalents, and short-term investments at the end of Q3 were approximately $110 million, including $47 million from a follow-on offering [12] - Full year 2023 cash burn is expected to be between $60 million and $65 million, while preliminary full year 2024 cash burn is estimated to be between $40 million and $55 million [12] Business Line Data and Key Metrics Changes - R&D expenses for Q3 2023 were $13 million, up 8% from $12.1 million in the prior year [11] - General and administrative expenses decreased to $6.9 million from $8.1 million year-over-year [10] - Sales and marketing expenses decreased to $1.4 million from $1.9 million year-over-year [10] Market Data and Key Metrics Changes - The company announced a partnership with Intermountain Health, marking its fourth hospital system partnership [6] - Surgeons and hospitals expressed strong interest in the differentiated surgical platform offered by the company [9] Company Strategy and Development Direction - The company is focused on capital efficiency and has downsized its team to prioritize long-term success [6] - A 12 to 18-month delay in the overall program is anticipated due to integration challenges and cost-cutting initiatives, pushing the completion of the V1.0 build to fall of 2024 [7] - The company remains committed to delivering a differentiated technology that can revolutionize robotic surgery [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenging market conditions and the need for cost adjustments to align with economic realities [10] - Despite setbacks, management remains optimistic about the potential to improve patient lives and the excitement surrounding the company's offerings [9] Other Important Information - The integration process for the V1.0 system is ongoing, with some software and hardware components requiring additional development [7] - The company plans to conduct its first cadaver procedures with the V1.0 system in spring 2024, with clinical use expected in mid to late 2025 [15] Q&A Session Summary Question: What are the milestones and cash sufficiency for the clinical trial? - Management outlined key milestones for the V1.0 system integration and confirmed sufficient cash to support the timeline [15][16] Question: What specific areas were cut back in spending? - Significant cuts were made to team size and external spending, focusing on capital efficiency [19] Question: What is the expected cost of the IDE study for ventral hernia? - The trial is expected to involve about 30 to 60 patients, with costs being manageable within the current cash burn guidance [22] Question: What are the integration challenges faced? - Integration challenges include software bugs and hardware issues, with a focus on remediating these before moving forward [24][25] Question: What is the current state of the R&D organization? - The internal team has been reduced from approximately 230 to about 130, with a focus on maintaining product development capabilities [28] Question: Are there risks to hospital or surgeon partnerships due to delays? - Management believes the risk is low, as hospital partners remain supportive despite the extended timeline [39]