Vicarious Surgical Inc. Q2 FY2024 earnings call

• The team built on momentum from earlier in the year, with design optimizations for surgeon console and patient cart underway. The patient cart underwent a first 4-minute assessment of bedside user experiences. Work continues on instrument arms. V1.0 system integration is on track for fall.
• Plans include informal and formal verification/validation activities, including cadaveric procedures, animal labs, and comprehensive benchmark testing.
• Announced a partnership with LSU Health New Orleans, marking the fifth hospital system alliance, providing insights for market strategy and clinician training.

In the second quarter of 2024, operating expenses totaled $17.7 million, a 17% year-over-year increase. R&D expenses were $10.9 million compared to $12.7 million in the second quarter of 2023. General and administrative expenses were $5.6 million, down from $7.1 million in the prior year. Sales and marketing expenses were $1.2 million versus $1.7 million in the second quarter of 2023. Adjusted net loss for the second quarter was $16.8 million, and GAAP net loss was $15.2 million. The company ended the second quarter with $73 million in cash, cash equivalents, and short-term investments, and expects a full-year cash burn of approximately $50 million.

• Full-year cash burn expected to be approximately $50 million.
• On track for V1.0 system integration in fall.
• First clinical patient anticipated around this time next year.
• Intends to enroll in clinical trial quickly after evaluating sites and protocols.

• Material risks and uncertainties in forward-looking statements, including regulatory changes, clinical trial outcomes, and manufacturing process risks. Refer to SEC filings for detailed risk factors.

Q: How do you think about funding your clinical trial now that it's set to kick off in 2025?

A: We ended the period with $73 million and have enough cash for another 1.5 years. Focus is on executing milestones like V1.0 integration and first clinical patient.

Q: Any early thoughts about where you think it's appropriate geographically for the clinical trial?

A: Currently top of mind for sites are South America and Australia, with CROs evaluating potential sites.

Q: Do you feel like you have enough partnerships? Should we expect more between now and commercial approval?

A: Each partnership needs to offer incremental and different value. LSU Health New Orleans offers unique regional insights, and partnerships are evaluated based on added value.

Q: Any change in indication strategy for the U.S.?

A: No change, still focusing on the same number of patients and indication.

Q: Where could there be potential risk in the integration process and how derisked are the timelines?

A: Complexity is the main risk area. There are no specific single areas, but time is built in to remediate issues, and we're as confident as possible given the complexity.