Vicarious Surgical Reports Fourth Quarter and Full Year 2023 Financial Results

Business Wire

Mon, Mar 4, 2024, 1:10 PM 13 min read

WALTHAM, Mass., March 04, 2024--(BUSINESS WIRE)--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 and full year ended December 31, 2023. Management will host a corresponding conference call at 4:30 p.m. ET today, March 4, 2024.

"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 $100 million in cash and investments. We are well positioned to execute upon our 2024 milestones and look forward to our spring cadaveric testing, and completing the integration of our Version 1.0 system this fall."

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 equity follow-on offering, meaningfully extending the Company’s cash runway.
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 for the fourth quarter of 2023, compared to $20.6 million in the corresponding prior year period, a decrease of 25%.
R&D expenses for the fourth quarter of 2023 were $8.5 million, compared to $11.9 million in the fourth quarter of 2022.
General and administrative expenses for the fourth quarter of 2023 were $5.9 million, compared to $6.9 million in the fourth quarter of 2022.
Sales and marketing expenses for the fourth quarter of 2023 were $1.2 million, compared to $1.8 million in the fourth quarter of 2022.
Adjusted net loss for the fourth quarter was $14.6 million, equating to a loss of $0.07 per share, as compared to an adjusted net loss of $19.9 million, or a loss of $0.16 per share, for the same period of the prior year. GAAP net loss for the fourth quarter was $13.1 million, equating to a net loss per share of $0.06, as compared to a GAAP net loss of $11.2 million or a net loss per share of $0.09 for the same period of the prior year.

Full Year 2023 Financial Results

Operating expenses were $80.7 million for the full year of 2023, compared to $80.1 million in the corresponding prior year period, an increase of 1%.
R&D expenses for the full year of 2023 were $47.6 million, compared to $43.9 million for the full year of 2022.
General and administrative expenses for the full year of 2023 were $26.9 million, compared to $29.7 million for the full year of 2022.
Sales and marketing expenses for the full year of 2023 were $6.2 million, compared to $6.5 million for the full year of 2022.
Adjusted net loss for the full year of 2023 was $76.3 million, equating to a net loss of $0.52 per share, as compared to an adjusted net loss of $78.8 million, or a net loss of $0.65 per share, for the same period of the prior year. GAAP net loss for the full year of 2023 was $71.1 million, equating to a net loss per share of $0.49, as compared to a net income of $5.2 million or a net income per share of $0.04 for the same period of the prior year.
The Company had $98.2 million cash and investments as of December 31, 2023. The Company’s cash burn rate for the full year of 2023 was $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 Waltham, Massachusetts. Learn more at www.vicarioussurgical.com.

Use of Non-GAAP Financial Measures

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, including net loss.

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.

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 December 31,						Year Ended December 31,
	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 December 31,						Year Ended December 31,
	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