Q1 2022 Vicarious Surgical Inc Earnings Call
40 years. It is estimated that more than 50% of the 39 million annual procedures addressable by surgical robots are currently performed using open surgical tech.
Surgical technique.
Pharma from large incisions associated with these techniques results in long hospitalization and recovery time.
Trauma from large incisions associated with these techniques results in long hospitalization and recovery time, high long-term cost of care, and significant pain and suffering.
<unk> long term cost of care and significant pain and suffering.
While current minimally invasive techniques seek to address this substantial unmet need, these techniques fall short.
While current minimally invasive techniques seek to address the substantial unmet need these techniques fall short.
Laparoscopic instruments are difficult to manipulate, have limited degrees of freedom, limited reach, and reduced depth perception and visibility, requiring significant coordination among the surgical team to perform the procedure.
Laparoscopic instruments are difficult to manipulate have limited degrees of freedom limited reach and reduced reduced depth preceptorship and visibility requiring significant coordination among the surgical team to perform the procedure.
Currently marketed robotic systems offer some advantages as compared to laparoscopic surgery, but require extensive training, have high associated costs, and see limited adoption.
Currently marketed robotic systems offer some advantages as compared to laparoscopic surgery, but require extensive training have high associated cost Cincy limited adoption.
At Vicarious Surgical, we intend to deliver the next generation of robotic assisted surgery to solve the shortcomings of open surgery and current laparoscopic and robotically assisted minimally invasive surgery.
And vicarious surgical we intend to deliver the next generation of robotic assisted surgery, just solve the shortcomings of open surgery and current laparoscopic and Robotically assisted minimally invasive surgery the.
The Vicarious system combines advanced miniaturized robotics and software.
The vicarious system combines advanced many tries to robotics and software to.
build an intelligent single incision surgical robot that virtually transports surgeons inside the patient to perform minimally invasive surgical procedures.
To build an intelligent single incision surgical robot that virtually transports surgeons inside the patient to perform minimally invasive surgical procedures, our proprietary decoupled actuators enable human equivalent motion with a full nine degrees of freedom per robotic arm, providing an experience that.
Our proprietary decoupled actuators enable human equivalent motion with a full nine degrees of freedom per robotic arm, providing an experience that is more natural and more akin to the surgeon's own upper body.
It's more natural and more akin to the surgeons one upper body movements.
In surgical procedures conducted on cadavers, the system allows surgeons to enter the abdomen from nearly any angle and work in nearly any direction without the need to manually reposition the system. A stereoscopic camera that rotates in three degrees of freedom provides the surgeon with imaging of nearly every surface in the abdomen.
In surgical procedures conducted on cadavers. The system allows surgeons to enter the abdomen from nearly any angle and working nearly any direction without the need to manually reposition the system.
Stereoscopic camera that rotate them three degrees of freedom provides the surgeon with imaging of nearly every surface in the abdomen.
The Vicarious System contains 28 sensors per instrument arm designed to enable real-time feedback to the surgeon on force, motion, and other key data intended to enhance the surgical procedures and patient outcome.
The vicarious system contains 28 centers per instrument arent designed to enable real time feedback to the surgeon on force motion and other key data intended to enhance the surgical procedures and patient outcomes.
With its significant technical advantages, our system's value proposition to hospitals and ambulatory surgical centers is clear. The vicarious system is designed to provide excellent surgical dexterity with flexible setup to enable indicated procedures to be performed faster and more effectively with less injury and risk too.
With its significant technical advantages, our system's value proposition to hospitals and ambulatory surgical centers is clear. The Vicarious System is designed to provide excellent surgical dexterity with flexible setup to enable indicated procedures to be performed faster and more effectively with less injury and risk to the patient, significantly reducing overall healthcare costs.
Patient significantly reducing overall health care costs.
Unlike legacy robotic systems, our system is also much smaller, easily moving to any operating room throughout a medical facility.
Unlike legacy robotic systems. Our system is also much smaller easily moving to any operating room throughout a medical facility.
Further, we intend for our product to be much more efficient to learn, set up, and use during a procedure.
Further we intend for our product to be much more efficient to learn setup and use during a procedure.
Hospitals and ambulatory surgical centers would not be required to dedicate permanent space reducing expenses related to operating room turnover.
Hospitals, and ambulatory surgical centers would not be required to dedicate permanent space, reducing expenses related to operating room turnover.
Finally, our system's efficient size and design will allow a cost-effective price point.
Finally, our systems efficient size and design will allow a cost effective price point.
Considering these advantages we remain incredibly excited about the unique opportunity for our system to benefit patients surgeons hospitals and payors.
Considering these advantages, we remain incredibly excited about the unique opportunity for our system to benefit patients, surgeons, hospitals, and payers.
Shifting to our recent progress, first, we are pleased to have completed the qualification of our clean room for the manufacturing of the vicarious system. The clean room substantially augments our existing capabilities by providing an environmentally controlled and easily expandable space for precision assembly.
Shifting to our recent progress.
First we are pleased to have completed the qualification of our clean room for the manufacturing of the vicarious system, the clean room substantially augment our existing capabilities by providing an environmentally controlled and easily expandable space for precision Assembly.
Through rigorous testing, the qualification process ensures that our states meet stringent efficiency and quality criteria, an essential step as we prepare for manufacturing our systems.
Through rigorous testing the qualification process ensures that our state meet stringent efficiency and quality criteria and essential steps as we prepare for manufacturing our system.
Secondly, we are excited to share that we have concluded cat or barrick testing of our beta one units and have begun testing. Some features of our beta to system with surgeons we.
Secondly, we are excited to share that we have concluded cadaveric testing of our Beta-1 units and have begun testing some features of our Beta-2 system with surgeons.
We have partnered closely with a select group of well-respected surgeons to integrate their thoughts and feedback as we refine the nuances of our technology, and we have high expectations in our final product.
We have partnered closely with a select group of well respected surgeon to integrate their thoughts and feedback as we refine the nuances of our technology and we have high expectations in our final product.
By engaging thought leaders core to the trajectory of surgical robotics, we know we will deliver a more thoughtful and comprehensive product prepared for efficient surgeon adoption.
Engaging thought leader court to the trajectory of surgical robotics, we know we will deliver a more thoughtful and comprehensive product prepared for efficient surgeon adoption.
Over the past month, we have rigorously tested the first iteration of our beta to surgeon console in order to help answer questions about the final data to which we intend to lock for production shortly feed.
Over the past month, we have rigorously tested the first iteration of our Beta 2 Surgeon Console in order to help answer questions about the final Beta 2, which we intend to lock for production shortly.
Feedback on ergonomic changes introduced between beta-1 and beta-2 has been well-received, with surgeons additionally excited for the improved visualization beta-2 provides, as well as the enhanced sensing and motion capabilities, which enable the surgeon to move freely within the abdominal cavity, further expanding their access and ability to operate.
Feedback on ergonomic changes introduced between beta one beta two has been well received with surgeons. Additionally, excited for the improved visualization beta two provides as well as the enhanced sensing and motion capabilities, which enable the surgeon to move freely within the abdominal cavity further expanding their access and ability to offer.
Great.
On the note of surgeon partnerships. We are pleased to announce that we have recently formed a surgeon luminary grip.
On the note of surgeon partnerships, we are pleased to announce we have recently formed a surgeon luminary group. This is a group of 20 of the most talented, experienced, and innovative surgeons providing critical expertise and thought leadership to guide all clinical aspects of our technology.
This is a group of 20 of the most talented experienced an innovative surgeons, providing critical expertise and thought leadership to guide all critical aspects of our technology.
These surgeons include Dr. Igor <unk>, who is credited with being the first to describe robotics each have access technique for repair ventral hernias and who is globally recognized as an expert and robotic abdominal wall reconstruction.
These surgeons include Dr. Igor Belyansky, who is credited with being the first to describe robotic ETEF access technique for repair of ventral hernias and who is globally recognized as an expert in robotic abdominal wall reconstruction.
Dr. Bell Emt is excited to work with our company because of our technology has potential to change the paradigm of cross surgery as well as the ability of our company to rapidly iterate and incorporate surgeon feedback into our product offering.
Dr. Belianski is excited to work with our company because of our technology's potential to change the paradigm across surgery, as well as the ability of our company to rapidly iterate and incorporate surgeon feedback into our product offering.
It is truly an honor to have this incredible group of surgeons working alongside us to create the future of surgery.
It is truly an honor to have this incredible group of surgeons working alongside us to create the future of surgery.
Leveraging the experience from Beta-1 and our many hospital and surgeon partnerships as well as the expertise of our newly formed surgeon luminary group, we are now exploring opportunities for Beta-2 cadaveric testing in a hospital setting as we finalize our product design. We look forward to continuing to update you on this progress in the coming months.
Leveraging the experience from beta one and there are many hospital in search and partnerships as well as the expertise of our newly formed surgeon Luminary group. We're now exploring opportunities for beta two cat of their testing in a hospital setting as we finalize our product design, we look forward to continuing to update you on this.
Progress in the coming months.
Shifting to our early awareness and training efforts, we strongly believe that simulation outside of the operating room will play an increasing role in surgeon and staff training for surgical robotics, we have a talented team of software engineers, who have developed a simulation platform and we are pleased to announce that we have begun allow.
Shifting to our early awareness and training efforts, we strongly believe that simulation outside of the operating room will play an increasing role in surgeon and staff training for surgical robotics. We have a talented team of software engineers who have developed a simulation platform, and we are pleased to announce that we have begun allowing surgeons to use our robotic simulator for clinical and technical testing.
<unk> surgeons to use our robotic stimulator for clinical and technical testing.
Our simulator allows surgeons to virtually test beta-tube features in realistic scenarios, even from remote locations and without physical contact.
Our simulator allows surgeons to virtually test beta two features and realistic scenarios even from remote locations.
And without physical access to our system.
This simulation program allows us to get surgeon feedback more quickly from more surgeons and with broader reach, ultimately ensuring that our launch meets the needs of surgeons in hospital.
This stimulation program allows us to get surgeon feedback more quickly for more surgeons and with broader reach ultimately ensuring that our launch meets the needs of surgeons and hospitals.
We look forward to making our simulation for robotic hernia repair and additional use cases available to more surgeons across a broader set of hospitals later this year.
We look forward to making our stimulation for robotic hernia repair and additional use cases available to more surgeons across a broader set of hospital later this year.
We continued to identify and engage with major hospitals for product feedback as we finalize our system to date hospital engagement is reflected strong enthusiasm for our system.
We continue to identify and engage with major hospitals for product feedback as we finalize our system. To date, hospital engagement has reflected strong enthusiasm for our system.
We are optimistic that our high engagement strategy will set the stage for broader reach as we plan our initial launch by ensuring that we are building exactly what surgeons and hospitals need.
We are optimistic that our high engagement strategy will set the stage for broader reach as we plan. Our initial launch by ensuring that we are building exactly what surgeons and hospitals meet.
As part of our partnership efforts, we are working toward executing a center of excellence agreement with the goal of generating valuable insights on the development
As part of our partnership efforts, we are working toward executing a center of excellence agreement with the goal of generating valuable insights on the development.
integration and finalization of the vicarious system.
Integration and Finalization of the vicarious system.
We are also confident that the center will help surgeons better understand and experience our system.
We are also confident that the center will help surgeons better understand and experience of our system.
We remain focused on leveraging our differentiated technologies and hand sensing to build out significant data and artificial intelligence capability.
We remain focused on leveraging our differentiated technologies enhanced sensing to build out significant data and artificial intelligence capabilities, we see a unique opportunity for vicarious surgical to employ data and AI to assist in all aspects of the procedure from preoperative planning through post operative care.
We see a unique opportunity for Vicarious Surgical to employ data and AI to assist in all aspects of the procedure from preoperative planning through postoperative care.
Our unique camera technology not only provides for additional physical space for multi-spectral light sources and filters, but also provides the platform for 3D mapping, enabling advanced intelligence to support the surgeon's decisions during the procedure and post-operative.
Our unique camera technology, not only provides for additional physical space for multi spectral light sources and filters, but also provides a platform for three D mapping, enabling advanced intelligence to support the surgeons decisions during the procedure and post operatively.
Before I turn the call over to Bill to review our first quarter financials, let me touch on our broader clinical and regulatory strategy.
Before I turn the call over to Bill to review, our first quarter financials, Let me touch on a broader clinical and regulatory strategy.
As a reminder, we are targeting the ventral hernia indication for our first clinical application with the intent to file a de novo classification request by late 2024, following which we intend to file for three additional indications, inguinal hernia, cholecystectomy, and hysterectomy.
As a reminder, we are targeting the ventral hernia indication for our first clinical application with the intent to file a de Novo classification request by late 2024, following which we intend to file for three additional indications inguinal hernia cholecystectomy and hysterectomy.
With that.
With that, we hope that by maintaining a close cadence of submissions, we will be able to offer customers a broad set of use cases relatively early in our commercial launch.
We hope that by maintaining a close cadence of submission we will be able to offer customers a broad set of use cases relatively early in our commercial launch.
In summary, we are making important steps toward realizing the full potential of minimally invasive robotic surgery. Our team is thoughtful and uncompromising in our approach towards development with an emphasis on ergonomic appeal and technological excellence.
In summary, we are making important steps toward realizing the full potential of minimally invasive robotic surgery. Our team is thoughtful and uncompromising in our approach toward development with an emphasis on ergonomic appeal and technological excellence.
We are actively building meaningful hospital and surgeon relationships to capitalize on this unique opportunity, and we are as confident as ever in the road ahead.
We are actively building meaningful hospital and surgeon relationships to capitalize on this unique opportunity and we are as confident as ever in the road ahead.
Thank you. And I will now turn the call over to Bill Kelly, our Chief Financial Officer, for a discussion of our first quarter financial results. Thank you, Adam.
Thank you and I will now turn the call over to Bill Kelley, Our Chief Financial Officer for a discussion of our first quarter financial results.
Thank you Adam and thank you all for joining us today.
Total operating expenses for the first quarter of 2022 were $18 $2 million, 248% increase from $5 2 million in the first quarter of 2021.
Total operating expenses for the first quarter of 2022 were $18.2 million, a 248% increase from $5.2 million in the first quarter of 2021.
R&D expenses for the first quarter of 2022 were $9.8 million compared to $3.6 million in the first quarter of 2022.
<unk> expenses for the first quarter of 2022 were $9 8 million.
Compared to $3 6 million in the first quarter of 2022.
The increase was primarily driven by a $3.6 million increase in personnel costs as R&D headcount increased nearly 100% compared to the prior year, as well as increased professional fees facility and material costs as we continue beta testing and development of the vicarious system.
The increase was primarily driven by a $3 $6 million increase in personnel costs as R&D head count increased nearly 100% compared to the prior year as well as increased professional fees facility and material costs as we continue beta testing and development of the vicarious system.
General and administrative expenses for the first quarter of 2022 were $6.9 million, compared to $1.4 million in the first quarter of 2021.
General and administrative expenses for the first quarter of 2022 were $6 9 million compared.
Compared to $1 $4 million in the first quarter of 2021.
The increase in G&A expenses can be primarily attributed to $3 1 million and increased personnel costs as well as $2 million insurance professional fees and other costs associated with being a public company.
The increase in GMA expenses can be primarily attributed to $3.1 million in increased personnel costs, as well as $2 million in insurance, professional fees, and other costs associated with being a public company.
Sales and marketing expenses for the first quarter of 2022 were $1 4 million compared to zero point $2 million for the first quarter of 2021.
sales and marketing expenses for the first quarter of 2022 were $1.4 million compared to $0.2 million for the first quarter of 2021. The increase in sales and marketing expenses can be primarily attributed to increased headcount and related costs.
The increase in sales and marketing expenses can be primarily attributed to increased head count and related costs.
Adjusted net loss, which represents GAAP net income or loss adjusted for the changes in the fair value of our warrant liabilities was $18 $2 million for the first quarter equating to an adjusted net loss of <unk> 15 per share as compared to an adjusted net loss of $5 2 million or <unk>.
Adjusted net loss, which represents gap net income or loss adjusted for the changes in the fair value of our warrant liabilities, was $18.2 million for the first quarter, according to an adjusted net loss of $0.15 per share, as compared to an adjusted net loss of $5.2 million or an adjusted loss of $0.06 per share for the same period of the prior year.
Adjusted loss of <unk> <unk> per share for the same period of the prior year.
Gap net income for the first quarter was $42.5 million due to a $60.7 million reduction in the fair value of our warrant liability for the period, equating to a basic and diluted net income of $0.35 and $0.33 per share, respectively.
GAAP net income for the first quarter was $42 $5 million due to a $67 million reduction in the fair value of our warrant liability for the period.
Getting to a basic and diluted net income of 35 and 33 per share respectively.
As compared to a net loss of $5 2 million or a basic and diluted net loss of <unk> <unk> per share for the same period of the prior year.
as compared to a net loss of $5.2 million or a basic and diluted net loss of $0.06 per share for the same period of the prior year.
For a reconciliation of all non-GAAP measures to GAAP. Please review our earnings press release.
For a reconciliation of all non-GAAP measures to GAAP, please review our earnings request.
Our cash burn rate for the first quarter of 2022 was $16 $5 million and we ended the quarter with $157 million of cash and cash equivalents.
Our cash burn rate for the first quarter of 2022 was $16.5 million, and we ended the quarter with $157 million of cash and cash equivalents.
As we advance our development, clinical and regulatory processes, we continue to expect 2022 cash burn of approximately $65 million to $75 million.
We advanced our development clinical and regulatory processes. We continue to expect 2022 cash burn of approximately $65 million to $75 million.
We also continue to anticipate ending the year with approximately $100 million in cash and cash equivalents on our balance.
We also continue to anticipate ending the year with approximately $100 million in cash and cash equivalents on our balance sheet.
We look forward to updating you on our continued development as we march towards bring towards bringing the bike carrier system to market. We are uplifted by our progress to date and excited by the opportunity ahead.
We look forward to updating you on our continued development as we march towards bringing the Vicarious system to market. We are uplifted by our progress to date and excited by the opportunity ahead. And with that, I'll turn the call back to Adam. Adam?
With that I will turn the call back to Adam.
Thanks, Bill I'd like to close by reiterating our appreciation for our team here at vicarious surgical along with our investors advisers and partners for contributing to our company's achievements. Thus far we have an exciting journey ahead, and we are making measurable progress in support of our goal to revolutionize minimally invasive.
Thanks, Bill. I'd like to close by reiterating our appreciation for our team here at Vicarious Surgical, along with our investors, advisors, and partners for contributing to our company's achievements thus far. We have an exciting journey ahead, and we are making measurable progress in support of our goal to revolutionize minimally invasive surgery.
Right.
Thank you again for joining today's call operator would you. Please open the line for questions.
Thank you again for joining today's call. Operator, would you please open the line for questions?
Alright. Thank you. Thank you I would like to ask a question. Please press star followed by one on your telephone keypad.
Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad for any reason you would like to remove that question, please press star followed by two again to ask a question. That's star one as a reminder. If you are using a speaker phone, please remember to pick up your handset before asking any question.
Any reason you would like to remove your question. Please press star followed by T. Again to ask a question Thats Star one.
As a reminder, if you are using a speaker phone. Please remember to pick up your handset before asking any questions.
Our first question comes from Ryan Zimmerman with <unk>.
Our first question comes from Ryan Zimmerman with BTIG. Ryan.
Brian Your line is now open.
Alright, Thank you for taking the questions Adam and Bill appreciate it.
All right. Thank you for taking the questions, Adam and Bill. Appreciate it.
It's good to hear the progress. Adam, last call, we left with the update that you needed a trial, the FDA was requiring a trial for progress, for de novo approval. Can you provide any update or feedback since that time regarding the progress that you guys have made, any discussions with the FDA, anything you can share with us regarding that topic, I think would be appreciated for investors.
Good to hear the progress Adam.
Last call, we left with the update that you needed a trial.
FDA was planning to trial for for progress.
De Novo approval can you provide any update or feedback since that time regarding the progress that you guys have made any discussions with the FDA or anything you can share with us regarding that topic I think would be appreciated for investors.
So thanks, Brian there's been a ton of progress across a few different areas.
So, thanks, Ryan. There's been a ton of progress across across a few different areas with with regard to the FDA with clinical trials and indication sequencing.
With regard to the FDA with clinical trials and indications sequencing.
From the FDA conversations, we've had conversations since then with the FDA, but have no formal or material updates to share on this call at the time. It's been incredibly positive, open communication with the agency.
From the FDA conversations we've had conversations since then with the FDA, but have no formal or material updates to share on this call at the time, it's been incredibly positive open communication with the agency.
We are actively planning and revising any clinical trial plans. Everything is still, as we shared, likely a relatively small number of patients and likely a single-arm study without statistical significance.
We are actively planning and revising any clinical trial plans everything it's still as we shared likely a relatively small number of patients and likely a single arm study without statistical significance.
And lastly, we've dug in in depth and will be able to have some significant parallel effort in order to achieve those four indications within roughly a year or so of launch, but have more details on that to come in the following quarter.
Lastly, we've dug in in depth and we'll be able to have some significant parallel effort in order to achieve those four indications within.
Within roughly a year or so of launch but.
More details on that to come in and have that follow on quarters.
Okay, good to know. Yeah, we'll certainly be looking forward to hearing about that. And then in terms of
Okay. Good and yeah, we will certainly be looking forward to hearing about that and then in terms of.
You know, you're now moving into beta two, you are in beta one, you have the surgeon panel kind of up and running. And you talked a little bit about some of the changes. I think ergonomics, visualization. You just talk a little more about that, Adam. What specifically did you learn from beta one to beta two that you enhanced? And, you know, if you carry that forward, what can people expect on the newer system?
You're now moving into beta two you are in beta one you have a surgeon panel kind of up and running and you talked a little bit about some of the changes I think it's ergonomic visualization can you just talk a little more about that Adam what specifically did you learn from beta one beta two that you enhance.
And.
Yeah.
If you carry that forward what can people expect on the newer system.
So the biggest learnings from beta one above all else has really been about the robot itself and the value of the patient side cart in the robotic technology that we've created.
So the biggest learnings from Beta 1, above all else, have really been about the robot itself.
and the value of the patient-side cart and the robotic technology that we've created. Beta-1 is able to provide surgeons with incredible ability to perform operations and catabaric testing across a variety of different procedures and a number of different.
One is able to provide surgeons with.
Incredible ability they perform operations and cadbury testing across a variety of different procedures and a number of different surgeons.
You know, that being said, there's significant room for improvement in a few different areas in particular. The main areas that we're focusing on improvement are really about the ergonomics and how the surgeon interacts with the device rather than how the device interacts with the patient.
Being said there is significant room for improvement.
In a few different areas in particular that the main areas that we're focusing on improvement are really about the ergonomics and how the surgeon interacts with the device rather than how the device interacts with the patient.
So, we've already seen a ton of progress in this, in our formative testing of the initial Beta 2 workstation. This includes revisiting how the hand controllers work, the ergonomics behind the hand controllers, and a few things around other pieces of surgeon interaction with the device. So, we'll be really excited to show this in a hospital setting and show this to analysts and investors at a later point.
So we've already seen a ton of progress in this and in our formative testing of the initial beta two workstation that its include revisiting how the hand controllers work the ergonomics behind the hand controllers and a few things around.
Around other pieces of surge in interaction with the device. So we'll be really excited.
To show that in a hospital setting and show that to analysts and investors that at a later point.
Awesome, Thanks for taking the questions.
Thank you, Ryan.
Thank you Ryan.
Our next question comes from Josh Jennings with Cowen.
Our next question comes from Josh Jennings with Cohen. Josh
Cohen.
Josh Your line is now open.
Hi, This is Eric on for Josh Thanks for taking the question.
Hi, this is Eric on for Josh. Thanks for taking the question was just curious supply chain headwinds are a routine topic that we're hearing from management teams for the Q and a recycle. I was just wondering if you could characterize the sort of supply chain headwinds that by carriers is facing. And then if you could discuss how you're dealing with that, that'd be fantastic. Thank you.
Was just curious some supply chain headwinds are we seeing topic that we're hearing from management teams to the Q1 earnings cycle. I was just wondering if you could characterize the sort of supply chain headwinds, but.
But curious is facing and then just if you could discuss how youre dealing with that that'd be fantastic. Thank you.
So, I think as a pre-commercial company overall, we are not immune to supply chain headwinds, but they impact us a lot less than commercial-stage companies. That being said, I mean, we have faced headwinds in a number of areas. We've had to source alternative parts. We've had to even make some changes to software, but none of these are material headwinds that we're facing.
So.
I think as a pre commercial company overall.
We are not immune to supply chain headwinds, but they impact us a lot less than commercial stage company.
That being said I mean, we have faced headwinds in a number of areas we've had to source alternative parts.
We've had to even make some some changes too.
Software, but none of these are material headwinds that we're facing.
And overall, we've been able to mitigate any issues that we've seen with supply chains by really focusing on our ability to internally execute, our ability to manufacture our own components where necessary with our own team.
And.
Overall, we've been able to mitigate any any issues that we've seen with supply chains by really focusing on our ability to internally execute our ability to manufacture our own components, where necessary with our own team. So the result is that we are experiencing the same.
So the result is that we are experiencing the same world and the same overall challenges that a lot of other people are experiencing, but they don't at all have the same impact to us because of really the stage that our company is at today. And on the upside overall, I'd like to say, I've been incredibly impressed with our team and their ability to adapt to this environment and the world that we're in.
World in the same overall challenges that a lot of other people are experiencing but they don't all have the same impact to us because of really the stage that our company at that today and on the upside overall I'd like to say I've been incredibly impressed with our team and their ability to adapt to this environment.
And the world that we're in.
and make changes as needed in order to continue to execute and continue to deliver.
And make changes as needed in order to continue to execute and continue to deliver.
That's great. Thank you. And then maybe as a follow up to Ryan's question on beta testing, in your observation, what elements of the vicarious system do you think surgeons and users are really finding most valuable and differentiated?
That's great. Thank you and then maybe as a follow up to Ryan's question on beta testing.
And your observation what elements of the bike carrier system do you think surges and users are really finding most valuable and differentiated.
So, more than anything else, it's really the robot and the visualization that comes with it. And that's 1 of the really 1 of the biggest reasons why we're focusing on on getting this device to market as readily and quickly as we can with the indication of ventral hernia. So, the dexterity and the ability to work up on the ceiling.
So more than anything else.
Really the robot and the visualization that comes with that and Thats one of the really one of the biggest reasons why we're focusing on on getting this device to market.
As readily and quickly as we can with the indication of ventral hernia, so the dexterity and the ability to work up on the ceiling.
The ability to visualize all around and really comfortably see everything in 360 degrees, as well as some of the advanced features that we are starting to bring in, all offer surgeons incredible advantages.
The ability to visualize all around and really comfortably see everything in 360 degrees as well as some of the advanced features that we are starting to bring in are all offer surgeons incredible advantages and that's been.
what they're most excited. So in summary, it's really the robot itself. Understood. Thank you so much.
What theyre most excited so in summary, it's really the robot itself.
Understood. Thank you so much.
Yes. Thank you.
Thank you Josh.
Our next question comes from.
Adam Nader with Piper Sandler. Adam, your line is now open.
Adam Nadir with Piper Sandler.
Adam Your line is now open.
Hi, Adam Hi, Bill This is Ryan on for Adam Congrats on the progress this quarter.
Hi, Adam. Hi, Bill. This is Simran, on for Adam. Congrats on the progress this quarter. When we take a look at the roadmap here, you've checked off the manufacturing clean room validation already this quarter, and it looks like the next key milestone is really executing these centers of excellence agreements.
When we take a look at the roadmap here.
Checked off and manufacturing clean room validation already this quarter and it looks like the next key milestone is really executing these centers of excellence agreements.
So any additional color on your progress there? Can you share with us which hospital systems you've engaged or how these agreements are structured? What a partnership might exactly entail? Just any additional detail there.
Any additional color on your progress there can you share with us, which hospital systems, you've engaged or how these agreements are structured.
Partnership my exactly entail just any additional detail there.
Yeah. So thank you for the question.
Yeah, so thank you for the question. Overall, these conversations have been going really well, and we're really excited to be able to have progress and be able to update soon. And it's really in the near future.
Overall, these conversations have been going really well.
And we're really excited to be able to have progress and be able to update.
Soon and really in the near future.
Sure.
I wish I had more details to share at this time, but I don't today. I'll be looking forward to sharing more as soon as we have it.
I wish I had more details to share at this time, but don't today I'll be looking forward to sharing more as soon as we have it.
Okay, perfect. And then to just circle back to beta 1, now that that's kind of completed, what has surgeon feedback looked like in terms of how you're thinking about commercializing the product or adoption of the product, you know, once it is
Okay, perfect and then.
To just circle back to a beta one.
Now that that's kind of a completed what had had surgeon feedback look like in terms of.
How youre thinking about commercializing the product or adoption of that product. Once it is commercial and then how many surgeons, where you're able to engage in that phase and has that interest from.
commercial, and then how many surgeons were you able to engage in that phase, and has that interest from those surgeons translated to demand for placement of a beta-2 when you've reached that point?
From those surgeons translated to demand for placement of the beta too.
When you reach that point.
So from the beta one.
So, from the Beta 1 standpoint, the main feedback has been, you know, the incredibly positive, enthusiastic feedback around Beta 1's ability to actually perform the procedures in order to manipulate tissue, in order to give incredible access and visualization.
Standpoint, the the.
The main feedback has been.
Incredibly positive enthusiastic feedback around beta one's ability to actually performed the procedure is in order to manipulate tissue in order to give incredible access and visualization and room for improvement around the ergonomics, which is why we're already testing a lot of these changes and a lot of these.
and room for improvement around the ergonomics, which is why we're already testing a lot of these changes and a lot of these improvements with surgeons today. The feedback of which are already on early beta 2 ergonomic feedback has been incredibly positive.
Improvement with surgeons today, the feedback of which are already on early beta two ergonomic feedback has been incredibly positive.
The number of surgeons, I don't know the exact number, it's in the few dozen category.
The number of surgeons that you don't know the exact number it's in the few dozen category.
and they've been obviously incredibly enthusiastic about continuing to work with us through Beta 2.
And they've been obviously incredibly enthusiastic about continuing to work with us through beta two and ultimately we're aiming to design exactly what the surgeons need and therefore hope that that will translate into long term demands through providing them the perfect product.
And ultimately, we're aiming to design exactly what these surgeons need, and therefore, hope that that will translate into long-term demand through providing them the perfect product. Okay, perfect. That's it for me. Thank you. Yeah, thank you.
Okay perfect.
Is it from me thank you.
Yes. Thank you.
Yeah.
Thank you.
Our next question comes from.
Matt.
With credit Suisse.
Ma'am your line is now open.
Hi. Thanks so much for taking the questions, and congrats on all the great progress.
Hi, Thanks, so much for taking the questions and congrats on all the great progress.
So I mean, it looked like the spending and the sort of progress that you've made in terms of deploying some of the capital you raised here all seems to be kind of on pace and maybe just a touch ahead of schedule. So.
The spending and the sort of progress that you've made in terms of, you know, deploying some of the capital you've raised here, all seems to be kind of on pace, and maybe just a touch ahead of schedule. So, which is a, which is a great sign. I'm just love to confirm.
Which is a great sign and just love to confirm whether you have any any any difficulty.
you have any difficulty, as sometimes is the case, in terms of timing of spend or.
Some times is the case in terms of timing of spend are finding the resources you need or we're getting through the.
finding the resources you need or getting through the key spending events that are inquired investing events to move forward. I just have a couple of follow-up.
Key spending events that are inquired investing and dividends to move forward and then I just have a couple of follow ups.
Yes, I would say from a spending perspective, we actually feel we're right on track I think for sure.
Yeah, I would say from a spending perspective, we actually feel we're right on track. I think, you know, for sure, you know, we're in the same hiring market as everybody else. And so that becomes a challenge for everybody. But we're doing extremely well on that and continuing to expand the team. But our spending as we advance towards Beta 2 is actually right on target.
No.
One thing hiring market as everybody else and so that becomes a challenge for everybody.
Doing extremely well on them.
Moving to expand the team.
But our spending.
Advancements made the tools actually which is right on target.
That's awesome.
That's awesome. And then the follow-ups were a couple things that you've mentioned, I think, Adam, a couple times. One is
Then the follow ups, where a couple of things that you've mentioned I think Adam a couple of times one is.
around the sort of the center of excellence or evaluation, you know, centers, and then also on the trial structure. So
The sort of.
Center of excellence of evaluation.
And then also on the trial structure so.
I know you don't want to, may not be prepared to get into a ton of detail on the trial and the filing strategy, but just could you maybe clarify as to.
I know you don't want to.
Prepared to get into a ton of detail on the trial and the filing strategy, but just could you maybe clarify as to.
You know, the trial that you're describing, the one that you've been talking about, negotiating the protocol with the FDA, that that is gonna get you to ventral.
The trial that you are describing the one that you've been talking about.
Negotiating a vertical with the FDA that that is going to get you an eventual and there will there be additional patients who are additional study to get to the other indications or maybe just a little more color and then as I said I just one quick follow up on centers.
And there will there be additional patients or additional study to get to the other indications or maybe just a little more color. And then, as I said, I just one quick call up on the centers. Yeah, so.
Yeah, so to the clinical trial.
it's likely to be a pretty similar trial for each of the indications that we're looking at.
It's likely to be a pretty similar trial for each of the indications that we're looking at.
There is a lot of ability to do these significantly in parallel rather than entirely sequentially, which is how we will be able to deliver on a number of indications all all within about a year of our initial launch with which we do think is important to the broader appeal of our technology into two providing.
rather than entirely sequentially, which is how we'll be able to deliver on a number of indications all within about a year of our initial launch, which we do think is important to the broader appeal of our technology and to providing surgeons and hospitals exactly what they need. Overall, the plan to do clinical trials, it's actually always been the plan. For every indication, with the exception that ventral hernia, we had intended to do it originally
Surgeons and hospitals exactly what they need.
Overall.
The plan to do clinical trials, its actually always been the plan for every indication.
with the exception that ventral hernia we had intended to do it originally post FDA filing.
The exception that ventral hernia, we had intended to do it.
Originally post FDA filing.
That being said, every other indication we had always had in the plan, these clinical trials. So that's all unchanged from our original plan.
That being said every other.
Every other indication we had always had in the plan B clinical trial. So that's all unchanged from our original plan.
Got it and then just on the centers.
Got it, and then just on the centers, if you could maybe expand a little bit on, you know, is this sort of put you in a position to have kind of a persistent or broader evaluation over a longer period of time with a center and a group of surgeons? Or what exactly is the, what is it, what are some of the benefits it delivers for vicarious and what are some of the benefits that it delivers for the center?
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Maybe expand a little bit on is this sort of puts you in a position to have kind of a persistent or broader evaluation over a longer period of time with a center in a group of surgeons or what exactly is the what is it what are some of the benefits of deliveries for the carriers and what are the some of the benefits the deliveries for the center.
<unk>.
Yes. It is.
Yeah, so these agreements that we're discussing with hospitals and hospital chains are really focused around today, around evaluation, beta testing, and providing valuable feedback in the development of the system. So to the hospital, it's an ability to participate in an incredibly exciting platform, an incredibly exciting technology and company, and the ability to, frankly, have their mark and their fingerprint on our first commercial product.
<unk> agreements that we are discussing with hospitals and hospital chains are really focused around <unk>.
Around today around evaluation beta testing and providing valuable feedback in the development of the system. So to the hospital and ability to participate in an incredibly exciting platform and incredibly exciting technology and company and the ability to frankly have their market and their fingerprint on on our first <unk>.
<unk> product and then once were commercial will transition into a core training center for surgeons and staff long term for our technology.
And then once we're commercial, we'll transition into a core training center for surgeons and staff long term for our technology.
So we're pretty far along in the conversations, and they're going extremely well. People are excited about it. And as soon as something's executed, we'll report it publicly. Excellent.
So we're we're pretty far along in the conversations and they're going extremely well people are excited about it and as soon as something is executed over reported publicly.
Excellent. Thanks, so much.
Yes. Thank you.
Thank you Matt.
That concludes today's question and answer session I would now like to pass the conference back over to Adam for any closing remarks.
That concludes today's question and answer session. I would now like to pass the conference back over to Adam for any closing remarks.
Thank you, everybody, for joining, and that concludes today's call.
Thank you everybody for joining and that concludes today's call.
Yes.
Okay.
That concludes today's Vicarious Surgicals 2022 first quarter earnings call. Thank you for your participation. You may now disconnect your line.
That concludes today's the carrier Surgical's 2022 first quarter earnings call. Thank you for your participation you may now disconnect your line.