Vicarious Surgical Reports Fourth Quarter and Full Year 2023 Financial Results
- Successful transition of Beta 2 surgical system to Version 1.0 in 2023.
- Signed a fourth major U.S. hospital system agreement with Intermountain Health.
- Executed a $47 million equity follow-on offering to extend cash runway.
- Appointed Randy Clark as Company President for core business functions.
- Operating expenses decreased in Q4 2023 compared to the prior year.
- Cash burn rate for 2023 was $63.4 million.
- Full year 2024 cash burn guidance of approximately $50 million.
- Increase in operating expenses for full year 2023 compared to the prior year.
- Adjusted net loss for full year 2023 was $76.3 million.
- GAAP net loss for full year 2023 was $71.1 million.
- Negative net loss per share for full year 2023 compared to a net income in the prior year.
The financial performance of Vicarious Surgical indicates a strategic shift towards capital efficiency, as seen by the reduced operating expenses and a narrowed adjusted net loss in the fourth quarter of 2023 compared to the same period in the previous year. The company's decision to execute a $47 million equity follow-on offering, which extended the cash runway, is a critical move for a company in the growth phase, especially in a capital-intensive industry like medical robotics. Investors should note the cash burn reduction from $63.4 million in 2023 to the projected $50 million in 2024, suggesting improved financial management and the impact of prior cost reduction initiatives. However, the GAAP net loss widening in the full year compared to the net income in the prior year could raise concerns about the company's profitability trajectory and warrants close monitoring of future financials.
From a market adoption perspective, Vicarious Surgical's partnership with over 250 hospitals, including a new agreement with Intermountain Health, is significant. It reflects the company's potential to penetrate the market and suggests confidence among healthcare providers in the company's technology. The transition from the Beta 2 surgical system to the Version 1.0 indicates a maturity in product development that could be pivotal for the company's growth. The anticipation of cadaveric testing in the spring and the integration of the V1.0 system in the fall are key milestones that could impact the company's valuation, as they are critical steps towards commercialization. The appointment of Randy Clark as Company President may also streamline operations and strengthen the company's commercial strategy, which is crucial for the successful rollout of new medical technologies.
The development of Vicarious Surgical's Version 1.0 Surgical System and its upcoming cadaveric testing are pivotal in the clinical validation process of medical devices. Successful testing outcomes can lead to increased investor confidence and potentially accelerate FDA approval processes. As the company refines its regulatory strategy, stakeholders should consider the stringent requirements for medical device approval and the associated risks and delays that can affect the company's timelines and financials. The integration hurdles mentioned could also signal complexities in the system that may require additional R&D investment, potentially affecting the company's long-term financial health and market position.
Version 1.0 Surgical System On Track for Cadaveric Testing this Spring
Achieves 2023 Cash Burn Objective of
2024 Cash Burn Guidance of
“We made meaningful progress transitioning our Beta 2 surgical system into our highly anticipated Version 1.0 product in 2023. Through close collaboration with our surgeon and major hospital system partners, we refined our V1.0 system design and successfully constructed each subsystem,” stated Adam Sachs, Co-Founder and CEO of Vicarious Surgical. “Although market headwinds and certain system integration hurdles drove us to prioritize capital efficiency and extend our timeline to build completion, we ended the year with a more resilient business structure, a defined regulatory strategy, and just under
Recent Business Highlights
-
Signed a fourth major
U.S. hospital system agreement with Intermountain Health, bringing the total number of Vicarious Surgical partner hospitals to over 250. -
Successfully executed a
$47 million dollar - Gained clarity on development and clinical pathway, with V1.0 integration expected in the fall of 2024.
- Appointed Randy Clark as Company President to assume responsibility for day-to-day oversight of various core business functions, including product development, operations, commercial strategy, clinical, regulatory and quality affairs, and human resources.
Fourth Quarter 2023 Financial Results
-
Operating expenses were
$15.5 million $20.6 million 25% . -
R&D expenses for the fourth quarter of 2023 were
$8.5 million $11.9 million -
General and administrative expenses for the fourth quarter of 2023 were
$5.9 million $6.9 million -
Sales and marketing expenses for the fourth quarter of 2023 were
$1.2 million $1.8 million -
Adjusted net loss for the fourth quarter was
$14.6 million $0.07 $19.9 million $0.16 $13.1 million $0.06 $11.2 million $0.09
Full Year 2023 Financial Results
-
Operating expenses were
$80.7 million $80.1 million 1% . -
R&D expenses for the full year of 2023 were
$47.6 million $43.9 million -
General and administrative expenses for the full year of 2023 were
$26.9 million $29.7 million -
Sales and marketing expenses for the full year of 2023 were
$6.2 million $6.5 million -
Adjusted net loss for the full year of 2023 was
$76.3 million $0.52 $78.8 million $0.65 $71.1 million $0.49 $5.2 million $0.04 -
The Company had
$98.2 million $63.4 million
Full Year 2024 Cash Burn Guidance
-
Vicarious Surgical expects full year 2024 cash burn of approximately
$50 million
Conference Call
Vicarious Surgical will host a conference call at 4:30 p.m. ET on Monday, March 4, 2024, to discuss its fourth quarter and full year 2023 financial results. The call may be accessed through an operator by dialing +1 833 470 1428 for domestic callers or +1 404 975 4839 for international callers, using access code: 608739. 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 virtually 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
Use of Non-GAAP Financial Measures
In addition to providing financial measurements that have been prepared in accordance with accounting principles generally accepted in
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
The Non-GAAP Financial Measures do not replace the presentation of Vicarious Surgical’s
Forward-Looking Statements
This press release 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: the ability to maintain the listing of Vicarious Surgical’s Class A common stock on the New York Stock Exchange; the approval, commercialization and adoption of Vicarious Surgical’s initial product candidates and the success of its single-port surgical robot, called the Vicarious Surgical System, and any of its future product candidates and service offerings; 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 Surgical System, 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; 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; 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 estimates regarding expenses, revenue, capital requirements and needs for additional financing; Vicarious Surgical’s financial performance; economic downturns, political and market conditions and their potential to adversely affect Vicarious Surgical’s business, financial condition and results of operations; Vicarious Surgical’s intellectual property rights and its ability to protect or enforce those rights, and the impact on its business, results and financial condition if it is unsuccessful in doing so; 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 is based.
VICARIOUS SURGICAL INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
$ |
8,468 |
|
|
$ |
11,877 |
|
|
$ |
47,578 |
|
|
$ |
43,900 |
|
Sales and marketing |
|
|
1,203 |
|
|
|
1,838 |
|
|
|
6,230 |
|
|
|
6,463 |
|
General and administrative |
|
|
5,870 |
|
|
|
6,895 |
|
|
|
26,858 |
|
|
|
29,715 |
|
Total operating expenses |
|
|
15,541 |
|
|
|
20,610 |
|
|
|
80,666 |
|
|
|
80,078 |
|
Loss from operations |
|
|
(15,541 |
) |
|
|
(20,610 |
) |
|
|
(80,666 |
) |
|
|
(80,078 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in fair value of warrant liabilities |
|
|
1,486 |
|
|
|
8,709 |
|
|
|
5,191 |
|
|
|
84,000 |
|
Interest and other income |
|
|
966 |
|
|
|
832 |
|
|
|
4,429 |
|
|
|
1,435 |
|
Interest expense |
|
|
(22 |
) |
|
|
(111 |
) |
|
|
(25 |
) |
|
|
(200 |
) |
Income/(loss) before income taxes |
|
|
(13,111 |
) |
|
|
(11,180 |
) |
|
|
(71,071 |
) |
|
|
5,157 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income/(loss) |
|
$ |
(13,111 |
) |
|
$ |
(11,180 |
) |
|
$ |
(71,071 |
) |
|
$ |
5,157 |
|
Net income/(loss) per share of Class A and Class B common stock, basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.49 |
) |
|
$ |
0.04 |
|
Weighted average shares, basic |
|
|
175,123,050 |
|
|
|
123,515,191 |
|
|
|
146,006,388 |
|
|
|
121,791,878 |
|
Weighted average shares, diluted |
|
|
175,123,050 |
|
|
|
123,515,191 |
|
|
|
146,006,388 |
|
|
|
127,528,509 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income: |
|
|
|
|
|
|
|
|
||||||||
Net unrealized income on investments |
|
|
99 |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
Other comprehensive income |
|
|
99 |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
Comprehensive net income/(loss) |
|
$ |
(13,012 |
) |
|
$ |
(11,180 |
) |
|
$ |
(71,061 |
) |
|
$ |
5,157 |
|
VICARIOUS SURGICAL INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(in thousands, except share and per share data) |
||||||||
|
|
December 31, |
||||||
|
|
2023 |
|
|
2022 |
|
||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
52,822 |
|
|
$ |
116,208 |
|
Short-term investments |
|
|
45,355 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
2,776 |
|
|
|
4,196 |
|
Total current assets |
|
|
100,953 |
|
|
|
120,404 |
|
Restricted cash |
|
|
936 |
|
|
|
936 |
|
Property and equipment, net |
|
|
6,402 |
|
|
|
6,586 |
|
Right-of-use assets |
|
|
11,459 |
|
|
|
12,273 |
|
Other long-term assets |
|
|
114 |
|
|
|
92 |
|
Total assets |
|
$ |
119,864 |
|
|
$ |
140,291 |
|
|
|
|
|
|
|
|
||
Liabilities, Convertible Preferred Stock and Stockholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
1,258 |
|
|
$ |
1,731 |
|
Accrued expenses |
|
|
4,975 |
|
|
|
5,808 |
|
Lease liabilities, current portion |
|
|
1,047 |
|
|
|
838 |
|
Current portion of equipment loans |
|
|
— |
|
|
|
16 |
|
Total current liabilities |
|
|
7,280 |
|
|
|
8,393 |
|
Lease liabilities, net of current portion |
|
|
13,785 |
|
|
|
14,832 |
|
Warrant liabilities |
|
|
830 |
|
|
|
6,021 |
|
Total liabilities |
|
|
21,895 |
|
|
|
29,246 |
|
Stockholders’ equity: |
|
|
|
|
|
|
||
Class A Common Stock |
|
|
15 |
|
|
|
11 |
|
Class B Common Stock |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
230,654 |
|
|
|
172,673 |
|
Accumulated other comprehensive income |
|
|
10 |
|
|
|
— |
|
Accumulated deficit |
|
|
(132,712 |
) |
|
|
(61,641 |
) |
Total stockholders’ equity |
|
|
97,969 |
|
|
|
111,045 |
|
Total liabilities and stockholders’ equity |
|
$ |
119,864 |
|
|
$ |
140,291 |
|
VICARIOUS SURGICAL INC. |
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
Adjusted net loss and Adjusted EPS |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net income/(loss) |
|
$ |
(13,111 |
) |
|
$ |
(11,180 |
) |
|
$ |
(71,071 |
) |
|
$ |
5,157 |
|
Change in fair value of warrant liabilities |
|
|
1,486 |
|
|
|
8,709 |
|
|
|
5,191 |
|
|
|
84,000 |
|
Adjusted net loss |
|
|
(14,597 |
) |
|
|
(19,889 |
) |
|
|
(76,262 |
) |
|
|
(78,843 |
) |
Adjusted EPS, basic and diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.52 |
) |
|
$ |
(0.65 |
) |
Weighted average shares, basic and diluted |
|
|
175,123,050 |
|
|
|
123,515,191 |
|
|
|
146,006,388 |
|
|
|
121,791,878 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240304077017/en/
Investor Contact
Kaitlyn Brosco
Vicarious Surgical
Kbrosco@vicarioussurgical.com
Marissa Bych
Gilmartin Group
Marissa@gilmartinir.com
Media Inquiries
media@vicarioussurgical.com
Source: Vicarious Surgical Inc.
