Q1 2024 Vicarious Surgical Inc Earnings Call

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Operator: Ladies and gentlemen, thank you for standing by. The Vicarious Surgical 2024 first quarter earnings call will begin shortly. If you would like to register a question at any time, please press star one on your telephone keypad. Thank you.

Ladies and gentlemen, thank you for standing by the carrier surgical as 2020 full first quarter earnings call will begin shortly if you would.

I'd like to register your question at any time. Please press star one on your telephone keypad. Thank you.

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Hello, and welcome to the carriers such calls 2024 first quarter earnings call.

Elliot: ?? ?? Hello and welcome to Vicarious Surgical's 2024 first quarter earnings call. My name is Elliot, and I'll be coordinating your call today. If you would like to register a question during today's event, please press the star followed by one on your telephone keypad. I'd now like to hand over to Kaitlyn Brosco, Head of Investor Relations. The floor is yours. Please go ahead.

Elliot: My name is Elliot has now recorded 19 your coke stake.

Elliot: If you would like to read just a question John stage events. Please press star followed by one on your telephone keypad.

Elliot: I would now like to hand over to Carolyn Roscoe head of Investor Relations. The floor is yours. Please go ahead.

Kaitlyn Brosco: Thanks, Elliot, and thank you all for joining me today for prepared remarks. Adam Sachs, co-founder and chief executive officer, and Bill Kelly, chief financial officer, will join for the Q&A portion of this call. Today, after the market closed, Vicarious Surgical released financial results for the three months ended March 31st, 2024.

Carolyn Roscoe: Thanks, Elliot and thank you all for joining with me today for prepared remarks, our atom <unk> co founder and Chief Executive Officer, and Bill Kelly Chief Financial Officer.

Carolyn Roscoe: Later, Randy Clark, our New company President will join for the Q&A portion of this call.

Carolyn Roscoe: Today after market close by carrier surgical released financial results for the three months ended March 31, 2020 for a copy of this press release is available on the company website.

Kaitlyn Brosco: A copy of this press release is available on the company website. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements.

Carolyn Roscoe: Before we begin I'd like to remind you that management will make statements. During this call that include forward looking statements within the meaning of federal Securities Law, which are made pursuant to the safe Harbor provision.

Carolyn Roscoe: Of the private Securities Litigation Reform Act of 1095.

Carolyn Roscoe: Any statements contained in this call that relate to expectations or predictions of future events results or performance are forward looking statements all forward looking statements, including without limitation.

Kaitlyn Brosco: All forward-looking statements, including without limitation, those related to obtaining approval for the Vicarious Surgical System and timing for any such approval, our operating trends, and future financial performance, Expense Management, Market Opportunity, and Commercialization are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place any undue reliance on these statements.

Carolyn Roscoe: Those relating to obtaining approval for the bike carrier surgical system and timing for any such approval, our operating trends and future financial performance expense management market opportunity and commercialization are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or event.

Carolyn Roscoe: To materially differ from those anticipated or implied by these forward looking statements. Accordingly, you should not place any undue reliance on these statements.

Kaitlyn Brosco: For a list and description of the risks and uncertainties associated with the business, please refer to the risk factors set forth in our Securities and Exchange Commission filings, including our most recent Form 10-K and Form 10-Q. This conference call contains time-sensitive information and is accurate only as of this live broadcast today, April 29th, 2024. Vicarious Surgical disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise.

Carolyn Roscoe: For a list and description of the risks and uncertainties associated with the business. Please refer to the risk factors set forth in our Securities and Exchange Commission filings, including our most recent Form 10-K and Form 10-Q.

This conference call contains time sensitive information and is accurate only as of this live broadcast today April 29 2024.

Carolyn Roscoe: Vicarious surgical disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise.

Adam David Sachs: Thanks, Kate, and thank you, everyone, for joining us. I'm proud to report a strong start to the year as we advance our mission to improve lives by transforming surgical robotics. In the first quarter, we made meaningful progress toward the finalization of our V1.0 system. The collective efforts of our development team culminated in the completion of our spring cadaver lab at the end of March.

Carolyn Roscoe: Now I'll hand, the call over to Adam for prepared remarks.

Adam: Thanks, Kate and thank you everyone for joining us I am proud to report a strong start to the year, we advanced our mission to improve lives by transforming surgical robotics in.

Adam: In the first quarter, we made meaningful progress towards the Finalization of our B one.

Adam: The collective efforts of our development team culminated in the completion of our spring <unk> lab at the end of March.

Adam David Sachs: This lab marks the first use of our integrated V1.0 system in a cadaveric procedural setting, with the primary goal of validating the capabilities and potential of the new system's feature set. I'm pleased to share that the lab proceeded as we had anticipated, verifying several advancements in development and yielding valuable insights across the system. During the lab, our V1.0 system showcased the tremendous potential inherent in our novel platform. Underpinned by the new fortified software, electronic, and mechanical architecture, and supported by enhanced instrumentation and visualization technology, the V1.0 system demonstrated the dynamic motion capabilities of our patient cart, facilitated maneuverability within the abdominal cavity, and enabled 360-degree visualization and access to targeted surgical sites.

Adam: Mark the first use of our integrated would be one point that system in a cat of Eric procedural getting with the primary goal of validating the capabilities and potential of the new systems features that.

Adam: I'm pleased to share that the lab proceeded as we had anticipated verifying several advancements in development and yielding valuable insights across the system.

Adam: During the lab our V. One financial system showcase the tremendous potential inherent in our novel platform underpinned by the new fortified software electronic and mechanical architecture and supported by enhanced instrumentation of visualization technology. The <unk> system exhibited the dynamic motion capabilities of our patient Kurt.

Adam: Facilitated maneuverability within the abdominal cavity and enabled 360 degree visualization and access to targeted surgical site.

Adam David Sachs: We highlighted many of these specific V1.0 development goals in our remarks last year, and I'm happy to report the success of our team's diligent efforts since. As anticipated, in addition to our development success, the lab offered insight into the additional refinements required for our final system. Over the next few quarters, our team will focus on leveraging these insights to fine-tune the V1.0 system in preparation for formal verification and validation tests.

Adam: We highlighted many of these specific the one point of development goals in our remarks last year and I'm happy to report the success of our team's diligent efforts.

Adam: As anticipated in addition to our development success the lab offer insight into the additional refinements required for our final system.

Adam: The next few quarter, our team will focus on leveraging these insights to fine tune the <unk> system in preparation for formal verification and validation testing.

Adam David Sachs: Taking a step back, I'd like to contextualize the detailed development work we are performing against the broader landscape for surgical robotics to remind our stakeholders why we believe our offering is poised to take a disproportionate share of this market over time. Even with considerable progress over the past few decades, the field of surgical robotics is still in its infancy. Despite substantial growth and various new market entrants, around 96% of the estimated $150 billion market opportunity remains white.

Adam: Taking a step back I'd like to contextualize. The detailed development work, we are performing against the broader landscape for surgical robotics to remind our stakeholders. While we believe our offering is poised to take a disproportionate share of this market over time.

Adam: Even with considerable progress over the past few decades, the field of surgical robotics.

Adam: In its infancy.

Adam: Despite substantial growth and very new market entrants around 96% of the estimated 150 billion dollar market opportunity remains white space.

Adam David Sachs: Recent strategic activity in the space continues to strongly support this notion that robotics is the future of surgery. However, while existing robotic technology has notably augmented surgeons' capabilities, these multiport systems have amplified costs to the hospital system without addressing the technology's fundamental limitations. For example, lack of instrument dexterity and range of motion constrain surgeons to utilizing wrist-on-a-stick instruments that necessitate multiple incisions in the patient and require cumbersome instrument triangulation by the surgeon.

Recent strategic activity in this space continues to strongly support this notion that robotics is the future of surgery.

Adam: And while existing robotic technology has notably augmented surgeon capabilities. These multi port systems have amplified talks to the hospital system without addressing the technology's fundamental limitations.

Adam: For example, lack of instrument dexterity and range of motion constrained surgeon utilizing risked on a stick instrument.

Adam: That necessitate multiple incision to the patient and require cumbersome instrument triangulation by the surgeon.

Adam David Sachs: This approach introduces complexity, both during the procedure and in preoperative steps, contributing to the steep learning curve for new users and the low 4% adoption rate for surgical robotics today. Vicarious Surgical was founded on the recognition of these limitations of multiport surgical robots. Instead of building off legacy robotic technology, we reimagined surgical robotics from the ground up. Core to our reimagined architecture is our proprietary decoupled actuator technology, which prevents force buildup in the joints of each instrument arm, significantly enhancing the dexterity and range of motion of our system, and thereby eliminating the need for multiple incisions required for instrument triangulation.

Adam: Approach introduces complexity, both during the procedure and in preoperative stuff.

Adding to the steep learning curve for new user and the low 4% adoption rate for surgical robotics today.

<unk> surgical was founded on the recognition of these limitations of multi port surgical robot instead of building off legacy robotic technology, we re imagined surgical robotics in the ground.

Adam: Core to our re imagine architecture is our proprietary deal coupled actuator technology, which prevents the fourth buildup in the joints of each instrument are significantly enhancing the dexterity and range of motion of our system and thereby eliminating the need for multiple infusions required for instrument triangulation.

Adam David Sachs: Through a single 18-millimeter incision, our system is designed to achieve full intra-abdominal access with high force exertion for our targeted surgical indication. We believe this streamlined approach will enhance procedural efficiency and remove the training demands on new surgeons for every procedure. With today's offerings predominantly limited to multi-port wrist-on-a-stick technology, we, along with our hospital system partners, see this as a distinct clinical and commercial advantage. We're confident that our technology's unique capabilities will establish a lasting competitive edge for us in the robotic-assisted surgery market, and with the completion of our Spring Cadaver Lab, we are excited to have taken another step towards finalizing our differentiated system. With that, I will turn it over to Bill to review our financial performance.

Adam: Dori single 18 millimeter incisions our system is designed to achieve full intra abdominal axis with high forced exertion for our targeted surgical indications.

Adam: We believe this streamlined approach will enhance procedural efficiency and remove the training demand on new surgeons for every procedure.

With today's offering predominantly limited from multi port risks on a stick technology, we along with our hospital system partners.

As a distinct clinical and commercial advantage.

Adam: We're confident that our technology's unique capabilities will establish a lasting competitive edge for us in the robotic assisted surgery market and with the completion of our spring to Dab relapse. We are excited to have taken another step towards finalizing our differentiated system.

Adam: With that I will turn it over to Bill to review our financial performance.

William J. Kelly: Thank you, Adam. As expected, our 2023 initiatives to streamline resources, optimize spending, and restructure the company for maximum efficiency are yielding a benefit to our 2024 expense profile. As a result, total operating expenses for the first quarter of 2024 were $16.1 million, a 28% decrease compared to $22.3 million in the first quarter of last year. R&D expenses for the first quarter of 2024 were $10 million, compared to $13.4 million in the first quarter of 2023.

Thank you Adam as expected, our 2023 initiatives to streamline resources optimize spending and restructure the company for maximum efficiency are yielding a benefit throughout 2024 expense profile.

As a result total operating expenses for the first quarter 2024 were $16 1 million or <unk>.

One, 8% decrease compared to $22 $3 million in the first quarter of last year.

Adam: R&D expenses for the first quarter of 2024 was $10 million.

<unk> to $13 $4 million in the first quarter of 2023.

William J. Kelly: General and Administrative expenses for the first quarter of 2024 were $5 million, down from $7 million in the first quarter of 2023. In the first quarter of 2024, sales and marketing expenses were $1.1 million versus $2 million in the first quarter of 2023. Again, the year-over-year reduction in operating expenses reflects the diligent efforts made throughout last year to optimize our burden and prioritize capital efficiency.

Adam: General and administrative expenses for the first quarter of 2024 were $5 million down from $7 million in the first quarter of 2023.

Adam: And first quarter 2024 sales and marketing expenses were $1 $1 billion versus $2 million in the first quarter of 2023.

Adam: Again, the year over year reduction in operating expenses reflects the diligent efforts made throughout last year to optimize our burn and prioritize capital efficiency.

William J. Kelly: Continuing on, adjusted net loss for the first quarter of 2024 was $15.1 million, equating to a net loss of $0.09 per share, as compared to an adjusted net loss of $20.8 million, or $0.17 per share, in the first quarter of 2023. Gap's net loss in the first quarter of 2024 was $17 million, according to a net loss of $0.10 per share. And this compares to a net loss of $26.9 million, or $0.21 per share, in the first quarter of 2023.

Adam: Continuing on adjusted net loss for the first quarter of 2024 was $15 1 million equating to a net loss of nine per share as compared to an adjusted net loss of $28 million or <unk> 17 per share in the first quarter of 2023.

Adam: GAAP net loss for the first quarter of 2024 was $17 million equating to a net loss of <unk> 10 per share.

Adam: This compares to a net loss of $26 $9 million or 21 per share in the first quarter of 2023.

William J. Kelly: For a reconciliation of all non-GAAP measures to GAAP, please review our earnings press release. We ended the first quarter of this year with approximately $84 million of cash, cash equivalents, and short-term investments on our balance. This represents a first quarter cash burn rate of approximately $14 million. Note that while first quarter cash burn was slightly elevated as a result of a few seasonally timed payments, we continue to expect full year 2024 cash burn to be approximately $50 million and remain committed to disciplined capital allocation.

Adam: For a reconciliation of all non-GAAP measures to GAAP. Please review our earnings press release.

Adam: We ended the first quarter this year with approximately $84 million of cash cash equivalents and short term investments on our balance sheet.

Adam: This represents a first quarter cash burn rate of approximately $14 million.

Adam: Note that while first quarter cash burn was slightly elevated as a result of a few seasonally timed payments. We continue to expect full year 2020 for cash burn to be approximately $50 million and remain committed to disciplined capital allocation.

William J. Kelly: 2024 is off to a strong start, and our team is executing with the urgency and discipline needed to achieve our development timelines, including the completion of the V1.0 system build and integration this fall. We look forward to updating you as we progress with our business initiatives in the coming quarters. Thank you, Bill.

Adam: 2024 is off to a strong start and our team is executing with urgency and discipline needed to achieve our development timelines, including the completion of the V. One point those system built and integration this fall.

Adam: We look forward to updating you as we progress with our business initiatives in the coming quarters and with that I'll turn the call back to Adam for closing remarks.

Adam: Thank you Bill.

Adam David Sachs: I'd like to close by reemphasizing the way in which we as a company have differentiated ourselves within the broader robotics market. While many surgical robotics companies continue to iterate on legacy platforms, we are taking a new path forward. While this approach takes careful time and consideration, we remain steadfast in the value of our unique technology. I'd like to thank all of our stakeholders, particularly our employees, for their continued support of our mission and vision. Elliot, we're happy to take any questions now.

Adam: I'd like to close by re emphasizing the way in which we as a company have differentiated ourselves within the broader robotics market.

Adam: While many surgical robotics companies continue to iterate on legacy platforms that we are taking a new path forward. While this approach takes careful time and consideration we remain steadfast in the value of our unique technology.

Adam: To thank all of our stakeholders, particularly our employees for their continued support of our mission and vision.

Speaker Change: Elliot, we're now happy to take any questions.

Elliot: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask a question, please ensure your device is unmuted locally. The first question comes from Ryan Zimmerman with BTIG. Your line is open. Please go ahead.

Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad. If you would like to withdraw your question. Please press star followed by two one.

When preparing to ask a question. Please ensure your device is unmatched it locally.

First question comes from Ryan Zimmerman with <unk>. Your line is open. Please go ahead.

Ryan Benjamin Zimmerman: Thanks for taking my questions. Good afternoon.

Speaker Change: Thanks.

Ryan Benjamin Zimmerman: For taking my questions good afternoon.

Ryan Benjamin Zimmerman: Just maybe a few for me.

Ryan Benjamin Zimmerman: Maybe a few for me. Your R&D expenses came in a little higher, and SG&A was certainly lower than I think we expected. But overall, really good expense management this quarter. Just kind of help us understand kind of how you're balancing the needs on kind of both sides of that P&L as you think about your progress and kind of what you have planned for the balance of this year.

Your R&D expenses came in a little higher SG&A was certainly lower than I think we expected, but overall really good expense management. This quarter, just kind of help us understand kind of how you're balancing the needs I'm kind of both sides of that P&L.

As you think about your progress and kind of what you have planned for the balance of this year.

William J. Kelly: Yeah, no, great question. Obviously, as we've made a number of cost reductions year over year, the focus has really been on building a quality robot and getting it to market as fast as possible and such, really where we try and draw the line there, focus on, and prioritize spending there. As noted in the call, our burn rate was probably a little bit higher than the run rate would otherwise be, but that was really due to the seasonality of certain spending.

Speaker Change: Great question, obviously, as we've made a number of cost reductions year over year. The focus has really been on building a quality robot and getting into market as fast as possible and so that's really where we try and draw a lot of their focus and prioritize spending there as noted in the call.

Speaker Change: Our burn rate was probably a little bit higher than otherwise the run rate would be but that was really due to the seasonality of certain spending as you can imagine certain material expenses and things like that.

William J. Kelly: As you can imagine, certain material expenses and things like that happen in one period versus another. That's why you're seeing that, but we still remain committed to, you know, 50 million cash burn for the year.

Speaker Change: One period versus another that's why you're seeing that but we still remain committed to.

Speaker Change: $50 million cash burn for the year.

Ryan Benjamin Zimmerman: Mm-hmm, and then. Correct me if I'm wrong here, Adam, but V1.0 wraps up in the fall of this year. Talk to us about kind of next steps from there, you know, how that dovetails into, you know, potentially the establishment of a clinical trial, I think, you know, slated for maybe mid to late 25, if I'm not mistaken, and kind of what you need to do once we get all the design and testing done for V1.0. Yeah, I think that's really important.

Speaker Change: Okay.

Speaker Change: And then.

Speaker Change: Correct me, if I'm wrong here, Adam, but so the V 1.0 wraps up in the fall of this year.

To us about kind of next steps from there.

Speaker Change: How that dovetails into potentially the establishment of a clinical trial.

I think.

Adam: Slated for maybe mid to late 'twenty, five if I'm not mistaken and kind of what you need to do once we get all the design and <unk>.

Adam: Testing done for VB, one point up.

Adam David Sachs: Yeah, I think that's a really important question. So, as we finalize our V1.0 system and go into more sort of preliminary verification and validation testing, we're going to then roll that into all of the formal testing that's required. As I'm sure you'll recall, we're focused primarily on outside the U.S. data collection in our clinical trial. And one of the advantages of that is in the verification and validation process, we need to do primarily all of the essential performance and safety testing rather than all verification and validation testing. So, once essential performance and safety testing is complete for our system, we'll then be able to start our clinical trial in 2025.

Speaker Change: Yes, I think thats.

Speaker Change: Really important question.

Speaker Change: So as we finalize our <unk> system and go into more sort of preliminary verification and validation captain we're going to then roll that into all of the formal testing that's required.

Speaker Change: I'm sure you'll recall, we're focused primarily on outside the U S data collection in our clinical trial in one of the advantages of that is in the verification and validation process, we need to do primarily be.

Speaker Change: All of the essential performance and safety testing, rather than all verification or validation casting so once our central performance in safety testing is complete.

Speaker Change: For our system will then be able to start off our clinical trial.

Speaker Change: In 2025.

Speaker Change: Thank you.

Operator: We now turn to Adam Maeder with Piper Sandler. Your line is open, please go ahead.

Speaker Change: We now turn to Adam <unk> with Piper Sandler. Your line is open. Please go ahead.

Adam Carl Maeder: Hi Adam, Bill, and Randy. Thank you for taking the questions and congratulations on the progress. I wanted to start with the spring cadaver lab experience and just ask a little bit more color there. So, you know, I guess the first question would be multi-part here: how many cadavers were performed, you know, who was doing the procedure? Was it surgeons that you guys partner with, talk about kind of setting a care and, and then just, you know, the bigger picture? Maybe just what were the learnings from the spring cadaver lab? What, you know, went better than planned?

Hi, Adam Bill Randy Thank you for taking the questions and congrats on.

Adam: The progress I wanted to start with the spring Cadaver lab experience and just ask for a little bit more color. There. So I guess the first question.

Adam: Would be multipart here, how many cadavers were performed who is doing the procedure.

Adam: Was it surgeons that you guys partner with talked about kind of setting of care and and then just bigger picture.

Adam: Maybe just what were the learnings from the spring Cadaver lab.

What what went better than planned and what were some of the challenges if any of that that may have arisen and then I had a follow up thanks.

Adam David Sachs: Yeah, a super quick question. So overall, it was the very first cadaver that we performed on. This was a single cadaver and will be the first of, you know, a number that we do over the course of this year. Overall, the procedure was designed to really test out the core functionality of our system and burn down and evaluate any potential issues and risks with it as early as possible, which is one of the reasons that we did it, frankly, on the earlier side of spring.

Adam: Yeah.

Speaker Change: Perfect question so.

Overall it was the very first cadaver that we performed.

Speaker Change: With a single cadaver and will be the first of a number that we do over the course of this year.

Speaker Change: Here.

Speaker Change: Overall.

Speaker Change: Procedure.

Speaker Change: <unk> was designed to really test out the core functionality of our system.

Speaker Change: And burned down and evaluate any potential issues and risks with it as early as possible, which is one of the reasons that we did at frankly on the earlier side of.

Speaker Change: The spring.

Speaker Change: It was done by.

Adam David Sachs: It was done by internal surgeons and surgeon partners and with the collaboration between two physicians. And overall, there were a number of things across, frankly, each subsystem that came up that we needed to focus on revising over the next two to three quarters, and that is why we

Speaker Change: Internal surgeons surgeon partners.

Speaker Change: And with the collaboration between two possession.

Speaker Change: And overall there were a number of things across frankly, each sub system that that came up that we needed to focus on on revising over the next two to three quarters and that is why we've scheduled in that time.

Adam Carl Maeder: Yeah, that's good color, Adam, and sorry to press here a little bit, but... To the extent that you're willing to share, you know, I think you called it additional refinements in the prepared remarks to the final system. What are some of those things that you guys need to smooth out before you go into final system integration in the fall?

Over the next couple of quarters to make those sort of patients before we actually lock or do you want to point out system.

Speaker Change: Yeah. That's that's good color, Adam and sorry to press, you a little bit but just.

Speaker Change: To the extent that you're willing to share.

I think you called it additional refinements in the <unk>.

Speaker Change: Repaired remarks to the final system, what are some of those things that you guys need to kind of smooth out before you go into a final system integration in the fall.

Adam David Sachs: Yeah, I'll give you a few examples of a few different things. So, you know, within the software, there were a handful of bugs that we encountered, including, you know, one on firmware within the arms and the sensing of the arms that caused some challenges along the way. That one has actually already been resolved. A few small things between the interaction between the lubrication of the trocar seals and the arm itself and the sensing of the arm, just to name, I'd say, two out of, frankly, a decent handful of similar things.

Speaker Change: Yeah, I'll give you a few examples of a few different things so.

Speaker Change: Within the software there were a handful of bugs that we encountered.

Speaker Change: Including one on audit firm, where within the arms and the sensing of the arms that caused some challenges along the way.

Speaker Change: I wanted to actually already been resolved.

Speaker Change: A few small things between interaction between the lubrication at the trocar seals and the arm itself and the sensing of the arm.

Speaker Change: Just to name I'd say two out of it frankly, a decent handful of similar thing so.

Adam David Sachs: So, you know, either one of those is fairly easy to resolve. It's just that, you know, there are a number that we need to tackle. And that's why we want to give ourselves a couple of quarters to do that and to really heavily test out the implementation of each solution.

Either one of the two of those are fairly easy to resolve.

Speaker Change: It's just that there are a number that we need to tackle and that's why we wanted to give ourselves a couple of quarters to do that and to really heavily test out the the implementation of each solution.

Speaker Change: Yes that does.

Adam Carl Maeder: And then just one last one, if I may, maybe for Randy, and congratulations on the new role, by the way. I wanted to ask you, you've been in the seat now for a few months.

Speaker Change: That makes sense to me. Thank you for that and then just one last one if I may maybe for Randy and congratulations on the new role by the way.

Randy Clark: I wanted to ask you've been in the seat now for a few months, maybe just talk about some of the early.

Randy Clark: Yeah, no, I appreciate the new person question, Adam. So, as you mentioned, since joining at the end of January, I've really just been fully immersing myself in the intricacies of our business and really trying to familiarize myself with each team and taking deep dives into all aspects of our operations, as you can imagine. And I can tell you it's been an incredibly exciting journey so far, especially where you're going with Adam.

Randy Clark: Impressions from your vantage point of the company and the technology.

Randy Clark: How will you look to put your fingerprints on the.

Randy Clark: Broader organization going forward, thanks, again for taking the questions.

Randy Clark: Yes.

Randy Clark: The new person question, Adam So as you mentioned since joining at the end of January.

Randy Clark: It's been fully immersing myself into the intricacies of our business and really trying to familiarize myself with each team.

Randy Clark: Taking a deep dive into all aspects of our operations as you can imagine.

Randy Clark: And I can tell you it's been incredibly exciting journey, so far, especially where youre going with Adam.

Randy Clark: You know, I had the privilege of observing the team's unwavering dedication, hard work, and commitment that led up to our spring cadaver lab. And that's one of my first takeaways that I want to double down on is just the talent that we have here at Vicarious Surgical is absolutely incredible, let alone the work ethic and commitment from the teams to really drive towards our mission. And I'm just focusing right now and being very committed to just discipline, the execution of our current objectives, and consistently achieving our milestones. That's going to be key to ensuring our success in the long term.

Randy Clark: Privilege observing the team's unwavering dedication and hard work and commitment that led up to our spring Cadaver lab and Thats. What my my first takeaways I don't want to double down on is just the talent that we have here at the curious surgical is absolutely incredible let alone the work ethic and commitments from the teams to really draw.

Ive towards our mission and I'm, just focusing right now is being very committed to.

Randy Clark: Disciplined execution of our current objectives and consistently achieving our milestones that's going to be key to ensuring our success in the long run.

Speaker Change: Thank you.

Operator: As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad now. We now turn to Josh Jennings with T.D. Cohen. Your line is open. Please go ahead.

Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad now.

Speaker Change: We now turn to Josh Jennings with TD Cowen. Your line is open. Please go ahead.

Joshua Thomas Jennings: Hi, good afternoon. Thanks a lot for taking the questions. Wanted to just, um... Get an update on the plans for the OUS clinical trial to support the DENOVA submission. I know it's only been two months since the last call and the last update, and less than that since our healthcare conference. Further communications with the FDA on that trial design, and just I guess the second part of the question is thinking about international sites and how do you go about, I know we're not till next year, but how do you go about establishing those relationships, or maybe they're already in hand in terms of finding investigator sites and finding the right ones and developing those surgeon relationships or center relationships with Vicarious.

Joshua Thomas Jennings: Hi, good afternoon, thanks for taking the questions I wanted to just.

Joshua Thomas Jennings: Get an update on the plans for <unk>.

Joshua Thomas Jennings: <unk> U S clinical trial to support the de Novo submission.

Joshua Thomas Jennings: And I know, it's only been two months since the last call in the last update and lessen that since our health care conference.

Joshua Thomas Jennings: Further communications with the FDA on that trial design and just I guess the second part of the question is thinking about international sites and how do you go about.

Joshua Thomas Jennings: We're not until next year, but how do you go about establishing those relationships or maybe they are already in hand in terms of finding investigator sites and finding the right ones and developing those surgeon relationships or central relationships with carriers.

Adam David Sachs: Yeah, thanks. Thanks, Josh. And two, two great questions there.

Speaker Change: Yeah. Thanks, Thanks, Josh into two great questions. There so I'll see.

Adam David Sachs: So, you know, I'll start with the FDA side. So, nothing that we have to share on that front directly. But what I will say is, as we're seeing the broader robotics space continue to develop, we are seeing other filings and, frankly, other approvals come through, many of which are occurring with entirely outside the US data as well as with about 30 patients each in each trial. So, this is further confirmation that, unsurprisingly, the guidance and support that the FDA is giving to us is being given in exactly the same way to the other new entrance in the space.

Speaker Change: Start with the FDA side, so nothing that we have to share on that front directly but what I will say is.

Speaker Change: We're seeing the broader robotics base continue to develop we are seeing other filings and frankly other approvals come through.

Speaker Change: Many of which are occurring with entirely outside the U S data as well as with.

Speaker Change: About 30 patients each in each trial. So this is further confirming that unsurprisingly the guidance and support that the FDA is giving to us is being given in exactly the same way to the other new entrants in the space and they are following through on their commitment there.

Adam David Sachs: And they are following through on their commitments there, so that is very reassuring for us to see. As far as specific site selection and country selection are concerned, we are in conversations with a number of different locations. We do have time, but we are well on the way to working through this already. And one of the goals here is to maintain optionality for as long as we can. I actually view that as a distinct advantage, especially when, frankly, regulatory environments in specific countries do change. And we'd like to maintain that optionality to choose the specific sites and even the specific countries out of a few that we're working with at the latest point so that that wouldn't impact.

Speaker Change: So that that is very reassuring for us to see as far as specific site selection and country selection, we are in conversations with.

Speaker Change: A number of different locations, we do have time, but we are well on our way to working through that already and one of the goals here is to maintain optionality for as long as we can we actually view that as a distinct advantage, especially when frankly, the regulatory environment in specific countries.

Speaker Change: Change and we'd like to maintain that optionality to choose the specific sites and even the specific countries out of a few that were working with.

Speaker Change: At the latest point that wouldn't impact our schedule.

Joshua Thomas Jennings: Great And then just to follow up on the cadaveric testing results and the refinements that you're going to put in place, are there more cadaveric laboratories? Professions that are required before you kind of get to that fully integrated fully integrated, [inaudible] Era, and move forward with the pre-V&V testing. Yeah, so the answer to that is certainly yes; we're well on the way to implementing a lot of these refinements already, and they're being primarily implemented into this next build, which will then be tested through robust cadaveric testing as well as a number of other tests.

Speaker Change: Great and then just a follow up on the category testing results from some of the refinements that.

Speaker Change: Youre going to put in play is there and are there more qdoba web.

Speaker Change: <unk> that are required before you kind of get that fully integrated fully integrated I guess.

Speaker Change:

Speaker Change: Era.

Speaker Change: And move forward with the premium be testing.

Speaker Change: They can all of course, yes, the answer to that is certainly yes.

Speaker Change: We're well on the way to implementing a lot of these refinements already and Theyre being primarily implemented into the next build which will then.

Speaker Change: Be tested true through robot Canterbury testing as well as a number of other.

Speaker Change: Tests.

Speaker Change: Great. Thank you.

Operator: Ladies and gentlemen, this concludes our Q&A and today's conference call. We'd like to thank you for your participation. You may now disconnect your lines.

Speaker Change: Ladies and gentlemen, this concludes our Q&A and today's conference call, we'd like to thank you for your participation you may now disconnect your lines.

Speaker Change: [music].