Company Updates & Weekly Activity (Jul 17th-28th)

Q2 Earnings & Weekly Activity July 17th-28th

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Company Updates

1. Vicarious Surgical (RBOT)

There’s really nothing new happening with RBOT, they are a pre-rev medical device company. So, they are still trying to make progress with the FDA… looks like, from what management has been saying, we are heading in the right direction. Here is a snapshot of their Q2 earnings results and highlights:

Q2 2023 Financial Results

• Operating expenses were $21.5M for the second quarter of 2023, compared to $19.1M in the corresponding prior year period, an increase of 12%.

• R&D expenses for the second quarter of 2023 were $12.7M, compared to $10.1M in the second quarter of 2022.

• General and administrative expenses for the second quarter of 2023 were $7.1M, compared to $7.8M in the second quarter of 2022.

• Sales and marketing expenses for the second quarter of 2023 were $1.7M, compared to $1.3M in the second quarter of 2022.

• GAAP net loss for the second quarter was $15.3M, equating to a net loss per share of $0.12, as compared to a GAAP net loss of $1.5M, equating to a net loss per share of $0.01 for the same period of the prior year. Adjusted net loss for the second quarter was $20.4M, equating to a net loss of $0.16 per share, as compared to an adjusted net loss of $19.1M, or a net loss of $0.16 per share, for the same period of the prior year.

• The company had $82.8M in cash, cash equivalents and short-term investments as of June 30, 2023 representing a quarterly cash burn of $14.9M. The Company continues to expect FY 2023 cash burn of $55-$65M.

Now, the only concerning metrics we need to watch is R&D and cash burn. We want to see R&D increase slightly or remain relatively unchanged, but when we start to see significant decreases or increases in this number, that’s a yellow flag. Cash burn is another worry, although they do remain on track for funding until early 2025. Not saying it will happen, but they will probably end up diluting shareholders if they come across any hurdles with FDA.

Q2 Highlights

• Received clarity on the clinical and regulatory pathway with the expectation to complete the first ventral hernia procedure in a patient mid-2024.

• Signed a fourth major U.S. hospital system agreement, bringing the total number of hospitals represented by Vicarious Surgical partners to over 250.

• Completed design freeze of the Vicarious Surgical Version 1.0 System in April with integration and build of system units on-track for Fall 2023.

• Promoted John Mazzola, previously SVP of Operations, to the newly created Chief Operating Officer role. John has over 35 years of medical device industry experience and direct involvement in over 25 Class II and Class III medical device product launches.

All of these highlights are great signs, especially their partnership agreements with hospitals increasing. John Mazzola was an excellent hire for RBOT too.

My Take

Doing nothing… this will remain a hold for me until I see significant progress. We have to treat this like a NNOX or any pre-rev biotech company.

2. Lockheed Martin (LMT)