Full Press Release Details
Reports Third Quarter 2023 Financial Results
WALTHAM, Mass.-- (BUSINESS WIRE) -
November 13, 2023 - Vicarious Surgical Inc. ("Vicarious Surgical" or the "Company") (NYSE: RBOT, RBOT WS),
a next-generation robotics technology company seeking to improve patient outcomes as well as both the cost and efficiency of surgical
procedures, today announced financial results for the quarter ended September 30, 2023. Management
will host a corresponding conference call at 4:30 p.m. ET today, November 13, 2023.
"The third quarter brought several
successes for our business, but also introduced new challenges as we focused on the build and integration of our Version 1.0 System,"
said Adam Sachs, Co-founder and Chief Executive Officer. "While we were pleased with our ability to
extend our cash runway through an equity follow-on offering and make meaningful progress on our individual sub-system builds, the impact
from recent market-driven cost cutting initiatives combined with certain integration challenges have compelled us to revise our
development schedule. We now expect to complete the Version 1.0 System build and integration during
the Fall of 2024, and consequently anticipate a De Novo submission around early to mid 2026. Although there is still work ahead, we remain
confident that our differentiated technology will allow us to revolutionize surgical robotics and transform the standard of care."
Quarter 2023 Financial Results
will host a conference call at 4:30 p.m. ET on Monday, November 13, 2023, to discuss its third quarter 2023 financial results. Investors
interested in listening to the conference call may do so by dialing +1 (404) 975 4839 for domestic callers or +1 (929) 526 1599 for international
callers, and using access code: 083118. A live and archived webcast of the event will be available at https://investor.vicarioussurgical.com.
About Vicarious Surgical
Founded in 2014, Vicarious Surgical is a
next generation robotics company, developing a unique disruptive technology with the multiple goals of substantially increasing the efficiency
of surgical procedures, improving patient outcomes, and reducing healthcare costs. The Company's novel surgical approach uses proprietary
human-like surgical robots to transport surgeons inside the patient to perform minimally invasive surgery. The Company is led by an experienced
team of technologists, medical device professionals and physicians, and is backed by technology luminaries including Bill Gates, Vinod
Khosla's Khosla Ventures, Innovation Endeavors, Jerry Yang's AME Cloud Ventures, Sun Hung Kai & Co. Ltd and Philip Liang's
E15 VC. The Company is headquartered in Waltham, Massachusetts. Learn more at www.vicarioussurgical.com.
In addition to providing
financial measurements that have been prepared in accordance with accounting principles generally accepted in the United States of America
("U.S. GAAP"), Vicarious Surgical provides additional financial metrics that are not prepared in accordance with U.S. GAAP
("non-GAAP"). The non-GAAP financial measures included in this press release are Adjusted Net Loss and Adjusted Net Loss
Per Share ("Adjusted EPS", and together with Adjusted Net Loss, "Non-GAAP Financial Measures"). The Company presents
Non-GAAP Financial Measures in order to assist readers of its consolidated financial statements in understanding the core operating results
that its management uses to evaluate the business and for financial planning purposes. Vicarious Surgical's Non-GAAP financial
measures provide an additional tool for investors to use in comparing its financial performance over multiple periods.
Adjusted Net Loss and
Adjusted EPS are key performance measures that Vicarious Surgical's management uses to assess its operating performance. These
Non-GAAP Financial Measures facilitate internal comparisons of Vicarious Surgical's operating performance on a more consistent
basis. Vicarious Surgical uses these performance measures for business planning purposes and forecasting. Vicarious Surgical believes
that the Non-GAAP Financial Measures enhance an investor's understanding of Vicarious Surgical's financial performance as
it is useful in assessing its operating performance from period-to-period, by excluding certain items that Vicarious Surgical believes
are not representative of its core business.
The Non-GAAP Financials
Measures may not be comparable to similarly titled measures of other companies because they may not calculate this measure in the same
manner. Adjusted Net Loss and Adjusted EPS are not prepared in accordance with U.S. GAAP and should not be considered in isolation of,
or as an alternative to, measures prepared in accordance with U.S. GAAP. When evaluating Vicarious Surgical's performance, you
should consider the Non-GAAP Financial Measures alongside other financial performance measures prepared in accordance with U.S. GAAP,
The Non-GAAP Financial
Measures do not replace the presentation of Vicarious Surgical's U.S. GAAP financial results and should only be used as a supplement
to, not as a substitute for, Vicarious Surgical's financial results presented in accordance with U.S. GAAP. In this press release,
Vicarious Surgical has provided a reconciliation of Adjusted Net Loss to net loss, the most directly comparable U.S. GAAP financial measure,
and the calculation for Adjusted EPS.
includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. The company's actual results may differ from its expectations, estimates, and
projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. All statements
other than statements of historical facts contained herein, including without limitation the quotations of our Chief Executive Officer
regarding Vicarious Surgical's opportunity, among other things, are forward-looking statements that reflect the current beliefs
and expectations of management. These forward-looking statements involve significant risks and uncertainties that could cause the actual
results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Vicarious Surgical's
control and are difficult to predict. Factors that may cause such differences include, but are not limited to: changes in applicable
laws or regulations; the ability of Vicarious Surgical to raise financing in the future; the success, cost and timing of Vicarious Surgical's
product and service development activities; the potential attributes and benefits of Vicarious Surgical's product candidates and
services; Vicarious Surgical's ability to obtain and maintain regulatory approval for the Vicarious System on the timeline it expects,
and any related restrictions and limitations of any approved product; the size and duration of human clinical trials for the Vicarious
Surgical; Vicarious Surgical's ability to identify, in-license or acquire additional technology; Vicarious Surgical's ability
to maintain its existing license, manufacture, supply and distribution agreements and scale manufacturing of the Vicarious Surgical System
and any future product candidates to commercial quantities; Vicarious Surgical's ability to compete with other companies currently
marketing or engaged in the development of products and services that Vicarious Surgical is currently marketing or developing, as well
as with the use of open surgeries; the size and growth potential of the markets for Vicarious Surgical's product candidates and
services, and its ability to serve those markets, either alone or in partnership with others; the pricing of Vicarious Surgical's
product candidates and services and reimbursement for medical procedures conducted using its product candidates and services; the company's
ability to meet its estimates regarding expenses, revenue, capital requirements, cash runway and needs for additional financing; Vicarious
Surgical's financial performance; Vicarious Surgical's intellectual property rights, its ability to protect or enforce these
rights, and the impact on its business, results and financial condition if it is unsuccessful in doing so; economic downturns, political
and market conditions and their potential to adversely affect Vicarious Surgical's business, financial condition and results of
operations; the impact of COVID-19 on Vicarious Surgical's business; and other risks and uncertainties indicated from time to time
in Vicarious Surgical's filings with the SEC. Vicarious Surgical cautions that the foregoing list of factors is not exclusive.
The company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Vicarious
Surgical does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 13,040 | $ | 12,120 | $ | 39,110 | $ | 32,023 | ||||||||
| Sales and marketing | 1,401 | 1,912 | 5,027 | 4,625 | ||||||||||||
| General and administrative | 6,911 | 8,130 | 20,988 | 22,820 | ||||||||||||
| Total operating expenses | 21,352 | 22,162 | 65,125 | 59,468 | ||||||||||||
| Loss from operations | (21,352 | ) | (22,162 | ) | (65,125 | ) | (59,468 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Change in fair value of warrant liabilities | 4,703 | (3,038 | ) | 3,705 | 75,291 | |||||||||||
| Interest and other income | 946 | 494 | 3,463 | 603 | ||||||||||||
| Interest expense | (1 | ) | (31 | ) | (3 | ) | (89 | ) | ||||||||
| Income/(loss) before income taxes | (15,704 | ) | (24,737 | ) | (57,960 | ) | 16,337 | |||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net income/(loss) | $ | (15,704 | ) | $ | (24,737 | ) | $ | (57,960 | ) | $ | 16,337 | |||||
| Net income/(loss) per share of Class A and Class B common stock, basic | $ | (0.10 | ) | $ | (0.20 | ) | $ | (0.43 | ) | $ | 0.14 | |||||
| Net income/(loss) per share of Class A and Class B common stock, diluted | $ | (0.10 | ) | $ | (0.20 | ) | $ | (0.43 | ) | $ | 0.12 | |||||
| Weighted average shares, basic | 155,141,393 | 121,965,277 | 136,194,179 | 121,201,693 | ||||||||||||
| Weighted average shares, diluted | 155,141,393 | 121,965,277 | 136,194,179 | 131,102,132 | ||||||||||||
| Other comprehensive income/(loss): | ||||||||||||||||
| Net unrealized income/(loss) on investments | 41 | - | (89 | ) | - | |||||||||||
| Other comprehensive income/(loss) | 41 | - | (89 | ) | - | |||||||||||
| Comprehensive net income/(loss) | $ | (15,663 | ) | $ | (24,737 | ) | $ | (58,049 | ) | $ | 16,337 |
CONDENSED CONSOLIDATED
(in thousands, except
share and per share data)
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 59,113 | $ | 116,208 | ||||
| Short-term investments | 51,076 | $ | - | |||||
| Prepaid expenses and other current assets | 3,222 | 4,196 | ||||||
| Total current assets | 113,411 | 120,404 | ||||||
| Restricted cash | 936 | 936 | ||||||
| Property and equipment, net | 5,889 | 6,586 | ||||||
| Right-of-use assets | 11,669 | 12,273 | ||||||
| Other long-term assets | 146 | 92 | ||||||
| Total assets | $ | 132,051 | $ | 140,291 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,529 | $ | 1,731 | ||||
| Accrued expenses | 5,267 | 5,808 | ||||||
| Lease liabilities, current portion | 1,007 | 838 | ||||||
| Current portion of equipment loans | - | 16 | ||||||
| Total current liabilities | 7,803 | 8,393 | ||||||
| Lease liabilities, net of current portion | 14,060 | 14,832 | ||||||
| Warrant liabilities | 2,316 | 6,021 | ||||||
| Total liabilities | 24,179 | 29,246 | ||||||
| Stockholders' equity: | ||||||||
| Class A Common stock | 15 | 11 | ||||||
| Class B Common stock | 2 | 2 | ||||||
| Additional paid-in capital | 227,545 | 172,673 | ||||||
| Accumulated other comprehensive loss | (89 | ) | - | |||||
| Accumulated deficit | (119,601 | ) | (61,641 | ) | ||||
| Total stockholders' equity | 107,872 | 111,045 | ||||||
| Total liabilities and stockholders' equity | $ | 132,051 | $ | 140,291 |
GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except
share and per share data)
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net income/(loss) | $ | (15,704 | ) | $ | (24,737 | ) | $ | (57,960 | ) | $ | 16,337 | |||||
| Change in fair value of warrant liabilities | 4,703 | (3,038 | ) | 3,705 | 75,291 | |||||||||||
| Adjusted net loss | (20,407 | ) | (21,699 | ) | (61,665 | ) | (58,954 | ) | ||||||||
| Adjusted EPS, basic and diluted | $ | (0.12 | ) | $ | (0.18 | ) | $ | (0.45 | ) | $ | (0.49 | ) | ||||
| Weighted average shares, basic and diluted | 155,141,393 | 121,965,277 | 136,194,179 | 121,201,693 |
Abby Mayo for Matter Health