Q2 2024 Vicarious Surgical Inc Earnings Call

August 12, 2024

Aitlin Brosco: Good afternoon. Thank you for attending the Vicarious Surgicals 2024 Second Quarter Earnings Call. My name is Cameron and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Aitlin Brosco, Director of Investor Relations. You may proceed.

Cameron: Call. My name is Cameron, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Kaitlyn Brosco, Director of Investor Relations. You may proceed.

Cameron: Call. My name is Cameron, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Kaitlyn Brosco, Director of Investor Relations. You may proceed. Thanks.

Cameron: My name is Cameron, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end.

Caitlin Brosco: I would now like to pass the conference over to your host, Caitlin Brosco, Director of Investor Relations. You may proceed.

Caitlin Brosco: Thanks, Cameron.

Kaitlyn Brosco: And thank you all for joining me today for prepared remarks. Adam Sachs, our co-founder and chief executive officer, Bill Kelly, chief financial officer, and lady leader, Randy Clark, our company president, will join for the q&a portion of the call. Today after the market closed, Vicarious Surgical released financial results for the three months ended June 30, 2024. 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 Security Litigation Reform Act of 1995.

Kaitlyn Brosco: Thanks, Cameron. And thank you all for joining me today for prepared remarks. Adam Sachs, our co-founder and chief executive officer, Bill Kelly, chief financial officer, and leader; Randy Clark, our company president, will join for the Q&A portion of the call. Today after the market closed, Vicarious Surgical released financial results for the three months ended June 30, 2024. 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 Security Litigation Reform Act of 1995.

Caitlin Brosco: And thank you all for joining. With me today for prepared remarks are Adam Sachs, our co-founder and chief executive officer, Phil Kelly, chief financial officer, and later Randy Clark, our company president. We'll join for the Q&A portion of the call.

Aitlin Brosco: Thanks, Cameron. And thank you all for joining with me today for prepared remarks. Our Adam Sachs, our co-founder and chief executive officer, Bill Kelly, chief financial officer and leader, Randy Clark, our company president, will join for the Q&A portion of the call.

Caitlin Brosco: Today, after market closed, Vicarious Surgical released financial results for the three months ended June 30th, 2024. A copy of this press release is available on the company website.

Speaker Change: Today after market closed, Vicary Surgical released financial results for the three months ended June 30, 2024. A copy of this press release is available on the company website.

Caitlin Brosco: Before we begin, I'd like to remind you that management will make statements during this call that include photo booking statements within the meeting of federal security laws, which are made pursuant to the safe harbor provisions 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 of performance, or photo booking statements. All photo booking statements, including without limitations, those relating to obtaining approval for Vicarious Surgical System and finally for any such approval. Excuse me, timing for any such approval for operating trends and visa financial performance, expense management, market opportunity, and commercialization are based upon our current estimates and various assumptions.

Kaitlyn Brosco: Any statements contained in this call that relate to expectations or predictions of future events or results of performance are forward-looking statements. All forward-looking statements, including, without limitation, those relating to obtaining approval for vicarious surgical systems and the timing of any such approval. Timing for any such approval for 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 for events to materially differ from those anticipated or implied by these forward-booking statements.

Kaitlyn Brosco: Accordingly, you should not place any undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the risk factors set forth in our securities and exchange submission 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 the live broadcast today, August 12, 2024. Vicarious Surgical disclaims any intention or obligation, except as required by law, to update or revise any financial projections or foreclosing statements, whether because of new information.

Speaker Change: 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 laws which are made pursuant to the safe harbor provisions

Speaker Change: of the Private Security Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results of performance, are forward-looking statements.

Speaker Change: All forward-looking statements, including without limitation, those relating to obtaining approval for vicarious surgical systems, and timely for any such approval.

Speaker Change: Timing for any such approval for Operating Trends and Featured Financial Performance Expense Management.

Speaker Change: 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 for events to materially differ from those anticipated or implied by these follow-booking statements. Accordingly, you should not place any undue reliance on these statements.

Caitlin Brosco: These statements involve material risk and uncertainties that could cause actual results for events to maturely differ from those anticipated or implied by these photo booking statements. Accordingly, you should not place any undue reliance on these statements.

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

Kaitlyn Brosco: For a list and description of the risks and uncertainties associated with our business, please refer to the risk factors set forth in our securities and exchange submission 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 the live broadcast today, August 12, 2024. Vicarious Surgical disclaims any intention or obligation, except as required by law, to update or revise any financial projections or foreclosing statements, whether because of new information, future events, or otherwise.

Speaker Change: For a list and description of the risks and uncertainties associated with our 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.

Caitlin Brosco: This conference called contains time-sensitive information and it's accurate only as of the live broadcast today, August 12, 2024. Vicarious Surgical displays any intention or obligation, except as required by law, to update or revise any financial projections or photo booking statements, whether because of new information, future events, or otherwise.

Speaker Change: This conference call contains time-sensitive information and is accurate only as of the live broadcast today, August 12, 2024.

Speaker Change: Vicarious physical 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. Now I'll hand this call over to Adam for our prepared remarks.

Kaitlyn Brosco: Now I'll hand this call over to Adam for our prepared remarks. Thanks, Kait. Good afternoon, everyone.

Adam Sachs: Now I'll hand this call over to Adam, so it's a pair of remarks. Thank you. Good afternoon, everyone. Thank you for joining. In the second quarter, the Vicarious Surgical team continues to fill upon the momentum generated in the first month of this year, remaining steadfast in our mission to improve lives by transforming robotic surgery. Upon the completion of our spring-to-dower lab at the end of March, our team began the process of aggregating and deciphering the numerous insights gained in the initial use of our version 1.0 system. From there, the necessary design optimizations were outlined at both the system and sub-system levels, and the team promptly began the implementation of the system refinement.

Adam Sachs: Thanks, Kate. Good afternoon, everyone. Thank you for joining us. In the second quarter, the Vicarious Surgical team continues to build upon the momentum generated in the first months of this year, remaining steadfast in our mission to improve lives by transforming robotic surgery. Upon the completion of our spring cadaver lab at the end of March, our team began the process of aggregating and deciphering the numerous insights gained in the initial use of our version 1.0 system. From there, the necessary design optimizations were outlined at both the system and subsystem levels, and the team promptly began the implementation of these system refinements.

Adam Sachs: Thank you for joining us. In the second quarter, the Vicarious Surgical team continues to build upon the momentum generated in the first months of this year, remaining steadfast in our mission to improve lives by transforming robotic surgery. Upon the completion of our spring cadaver lab at the end of March, our team began the process of aggregating and deciphering the numerous insights gained in the initial use of our version 1.0 system. From there, the necessary design optimizations were outlined at both the system and subsystem levels, and the team promptly began the implementation of these system refinements.

Adam Sachs: Thanks, Kate. Good afternoon, everyone. Thank you for joining. In the second quarter, the Vicarious Surgical team continues to build upon the momentum generated in the first months of this year, remaining steadfast in our mission to improve lives by transforming robotic surgery.

Adam Sachs: Upon the completion of our spring cadaver lab at the end of March, our team began the process of aggregating and deciphering the numerous insights gained in the initial use of our version 1.0 system.

Adam Sachs: From there, the necessary design optimizations were outlined at both the system and subsystem levels, and the team promptly began the implementation of these system refinements.

Adam Sachs: As it stands today, both pieces of capital equipment, the Surgical Compal and the patient cart, are in the latter stages of planned refinement. Given the promising status of our patient cart, we conducted our first version 1.0 formative assessment, evaluating the surgeon and care team's bedside user experiences. Assessing human factors, such as maneuverability, docking, draping, and instrument insertion throughout the development cycle, ensures that our designs put the end user at heart and will deliver a top-tier customer experience.

Adam Sachs: As it stands today, both pieces of capital equipment, the surgeon console, and the patient cart, are in the latter stages of planned refinements. Given the promising status of our patient cart, we conducted our first version 1.0 formative assessment evaluating the surgeon and care team bedside user experience. Assessing human factors such as maneuverability, docking, draping, and instrument insertion throughout the development cycle ensures our design puts the end user at heart and will deliver a top-tier customer experience.

Adam Sachs: As it stands today, both pieces of capital equipment, the surgeon console, and the patient cart, are in the latter stages of planned refinement. Given the promising status of our patient cart, we conducted our first version 1.0 formative assessment evaluating the surgeon and care team bedside user experience. Assessing human factors such as maneuverability, docking, draping, and instrument insertion throughout the development cycle ensures our design puts the end user at heart and will deliver a top-tier customer experience.

Adam Sachs: As it stands today, both pieces of capital equipment, the surgeon console and the patient cart, are in the latter stages of planned refinement.

Adam Sachs: Given the promising status of our patient cart, we conducted our first version 1.0 formative assessment, evaluating the surgeon and care team's bedside user experiences.

Adam Sachs: Assessing human factors such as maneuverability, docking, draping, and instrument insertion throughout the development cycle ensures our design puts the end user at heart and will deliver a top-tier customer experience.

Adam Sachs: Overall, we are pleased with the results of our recent formative assessment and plan to continue with our Surgeon Council formative next. Regarding the system insurance, while we finalize the latest camera bill last month, our team continues to work through the enhancements of our most differentiated sub-system, the instrument hours. Ensuring we are achieving the refined fidelity, range of motion, and the ability to capture the attention of our hospital system partners. I'm happy to say that, with the pace of progress achieved in the second quarter, we remain on track for our V1.0 system integration this fall. Following the integration milestone, our plan includes informal verification of validation activities across the individual sub-systems and full system, incorporating both cataberec procedures and animal laps.

Adam Sachs: Overall, we are pleased with the results of our recent formative assessment and plan to continue with our Surgeon Consul formative. Regarding the system instruments, while we finalized the latest camera built last month, our team continues to work through the enhancements of our most differentiated subsystem, the instrument ARS, ensuring we are achieving the refined fidelity, range of motion, and dexterity to capture the attention of our hospital system partner. I'm happy to say that with the pace of progress achieved in the second quarter, we remain on track for our V1.0 system integration this fall.

Adam Sachs: Overall, we are pleased with the results of our recent formative assessment and plan to continue with our Surgeon Consul formative. Regarding the system instruments, while we finalized the latest camera build last month, our team continues to work through the enhancements of our most differentiated subsystem, the instrument ARS, ensuring we are achieving the refined fidelity, range of motion, and dexterity to capture the attention of our hospital system partner. I'm happy to say that with the pace of progress achieved in the second quarter, we remain on track for our V1.0 system integration this fall.

Adam Sachs: Overall, we are pleased with the results of our recent formative assessment and plan to continue with our Surgeon Consul formative next.

Adam Sachs: Regarding the system instruments, while we finalized the latest camera built last month, our team continues to work through the enhancements of our most differentiated subsystem.

Adam Sachs: the instrument ARS, ensuring we are achieving the refined fidelity, range of motion and dexterity that captures the attention of our hospital system partners.

Adam Sachs: I am happy to say that with the pace of progress achieved in the second quarter, we remain on track for our v1.0 system integration this fall.

Cameron: My name is Cameron and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.

Adam Sachs: Following the integration milestone, our plan includes informal verification of validation activities across the individual subsystems and the full system, incorporating both cadaveric procedures and animal labs. We will then transition into the formal verification and validation process, where we will undergo a range of comprehensive benchmark testing, including system-specific evaluations that assess procedural capability and safety, known as essential performance and safety tests. This includes, for example, biocompatibility and electromagnetic compatibility testing to assess interference, environmental testing to gauge performance under various conditions, and durability testing to assess long-term reliability.

Adam Sachs: Following the integration milestone, our plan includes informal verification of validation activities across the individual subsystems and the full system, incorporating both cadaveric procedures and animal labs. We will then transition into the formal verification and validation process, where we will undergo a range of comprehensive benchmark testing, including system-specific evaluations that assess procedural capability and safety, known as essential performance and safety tests. This includes, for example, biocompatibility and electromagnetic compatibility testing to assess interference risk, environmental testing to gauge performance under various conditions, and durability testing to assess long-term reliability.

Adam Sachs: Following the integration milestone, our plan includes informal verification of validation activities across the individual subsystems and full system, incorporating both cadaveric procedures and animal labs.

Caitlin Brosco: I would now like to pass the conference over to your host, Caitlin Brosco, Director of Investor Relations. You may proceed. Thanks, Cameron. And thank you all for joining.

Adam Sachs: We will then transition into the formal verification and validation process, where we will undergo a range of comprehensive benchmark testing, including system-specific evaluations that assess procedural capability and safety, known as essential performance and safety testing. This includes, for example, biocompatibility and electromagnetic compatibility testing to assess interferences, environmental testing to gauge performance under various conditions, and durability testing to assess long-term reliability. All of this testing is done to ensure our device meets regulatory standards and is safe and effective for clinical use. Once our system satisfies the essential performance and safety standards, we can confidently proceed with our first clinical patients and subsequent clinical trials, while simultaneously addressing the remaining verification and validation requirements related to human factors and manufacturing processes.

Caitlin Brosco: With me today for prepared remarks are Adam Sachs, our co-founder and chief executive officer, Phil Kelly, Chief Financial Officer, and lady later Randy Clark, our company president. We'll join for the Q&A portion of the call.

Caitlin Brosco: Today after market closed, Vicarious Surgical released financial results for the three months ended June 30th, 2024. A copy of this press release is available on the company website.

Adam Sachs: This includes, for example, biocompatibility and electromagnetic compatibility testing to assess interference risk, environmental testing to gauge performance under various conditions, and durability testing to assess long-term reliability.

Caitlin Brosco: Before we begin, I'd like to remind you that management will make statements during this call that include photo booking statements within the meeting of federal security laws which are made pursuant to the state harbor provisions of the private security litigation reform act of 1995. Any statements contained in this call that relate to expectations or predictions of future events results of performance or photo booking statements. All photo booking statements, including without limitations, those relating to obtaining approval for Vicarious Surgical System and finally for any such approval.

Adam Sachs: All of this testing is done to ensure our device meets regulatory standards and is safe and effective for clinical use. Once our system satisfies the essential performance and safety standards, we can confidently proceed with our first clinical patient and subsequent clinical trials, while simultaneously addressing the remaining verification and validation requirements related to human factors and manufacturing processes. With our first clinical patient anticipated around this time next year, our clinical and regulatory teams are diligently working with CROs to evaluate potential OUS clinical sites and their respective regulatory procedures and land. In an effort to avoid any unexpected regulatory changes and maintain our optionality, we have not yet announced a formal decision on clinical site selection but intend to do so once appropriate.

Adam Sachs: All of this testing is done to ensure our device meets regulatory standards and is safe and effective for clinical use.

Adam Sachs: Once our system satisfies the essential performance and safety standards, we can confidently proceed with our first clinical patient and subsequent clinical trial, while simultaneously addressing the remaining verification and validation requirements related to human factors and manufacturing processes.

Caitlin Brosco: Excuse me, timing for any such approval for operating trends and visa financial performance, expense management, market opportunity, and commercialization are based upon our current estimates and various assumptions. These statements involve material risk and uncertainties that could cause actual results for events to maturely differ from those anticipated or implied by these photo booking statements. Accordingly, you should not place any undue reliance on these statements. For a list and description of the risk and uncertainties associated with our business, these refer to the risk factors set forth in our securities and exchange commission filings, including our most recent form, 10K and form 10K.

Speaker Change: Thank you. Thank you.

Speaker Change: With our first clinical patient anticipated around this time next year, our clinical and regulatory teams are diligently working with CROs to evaluate potential OUS clinical sites and their respective regulatory procedures and landscapes.

Adam Sachs: In an effort to avoid any unexpected regulatory changes and maintain our optionality, we have not yet announced a formal decision on clinical site selection, but intend to do so once appropriate.

Adam Sachs: In an effort to avoid any unexpected regulatory changes and maintain our optionality, we have not yet announced a formal decision on clinical site selection but intend to do so once appropriate. As we continue to make strides in our development cycle, we are also thrilled to announce an exciting new partnership with LSU Health New Orleans, Louisiana's premier academic health institution. Renowned for its high quality academic and training programs, LSU Health New Orleans educates the majority of Louisiana's health care professionals.

Speaker Change: In an effort to avoid any unexpected regulatory changes and maintain our optionality, we have not yet announced a formal decision on clinical site selection, but intend to do so once appropriate.

Adam Sachs: As we continue to make strides in the development cycle, we are also thrilled to announce an exciting new partnership with LSU Health New Orleans, Louisiana's premier academic health institution. Renowned for high-quality academic and training programs, LSU Health New Orleans educates the majority of Louisiana's healthcare professionals. Their network includes the University Medical Center, a distinguished research and academic hospital known for its robust medical training facilities and comprehensive patient care services. As a leading regional provider, LSU Health New Orleans offers unique insights into administrative and clinical protocols, typical of regional care centers, yielding valuable perspectives to enhance our market strategy.

Bill Kelly: As we continue to make strides in our development cycle, we are also thrilled to announce an exciting new partnership with LSU Health New Orleans, Louisiana's premier academic health institution. Renowned for its high-quality academic and training programs, LSU Health New Orleans educates the majority of Louisiana's health care professionals. Their network includes University Medical Center, a distinguished research and academic hospital known for its robust medical training facilities and comprehensive patient care services. As a leading regional provider, LSU Health New Orleans offers unique insight into administrative and clinical protocols typical of regional care centers, yielding valuable perspectives to enhance our market strategy.

Speaker Change: As we continue to make strides in our development cycle, we are also thrilled to announce an exciting new partnership with LSU Health New Orleans, Louisiana's premier academic health institution.

Caitlin Brosco: This conference called contains time-sensitive information and it's accurate only as of the live broadcast today, August 12, 2024. Vicarious Surgical displays any intention or obligation, except as required by law, to update or revise any financial projections or photo booking statements whether because of new information, future events, or otherwise.

Speaker Change: Renowned for its high-quality academic and training programs, LSU Health New Orleans educates the majority of Louisiana's healthcare professionals.

Adam Sachs: Their network includes University Medical Center, a distinguished research and academic hospital known for its robust medical training facilities and comprehensive patient care services. As a leading regional provider, LSU Health New Orleans offers unique insight into administrative and clinical protocols typical of regional care centers, yielding valuable perspectives to enhance our market strategy. Additionally, their commitment to clinician training involving learners at all levels presents a significant opportunity for our team to validate training protocols and the clinical and economic benefits of our single port system with the next generation of surgeons.

Speaker Change: Their network includes University Medical Center, a distinguished research and academic hospital known for its robust medical training facilities and comprehensive patient care services.

Caitlin Brosco: Now I'll hand this call over to Adam, so it's a pair of remarks. Thank you.

Adam Sachs: Good afternoon, everyone. Thank you for joining. In the second quarter, the Vicarious Surgical team continues to fill upon the momentum generated in the first month of this year, remaining dead fast in our mission to improve lives by transforming robotic surgery. Upon the completion of our spring-to-dower lab at the end of March, our team began the process of aggregating and deciphering the numerous insights gained in the initial use of our version 1.0 system.

Speaker Change: As a leading regional provider, LSU Health New Orleans offers unique insight into administrative and clinical protocols typical of regional care centers, yielding valuable perspectives to enhance our market strategy.

Adam Sachs: Additionally, their commitment to clinician training, involving learners at all levels, presents a significant opportunity for our team to validate training protocols and the clinical and economic benefits of our single-port system with the next generation of students. Our partnership with LSU Health New Orleans marks our fifth hospital system alliance to date, further reinforcing our confidence in our innovative single court approach to surgical robotics and our potential to take share of this market over time.

Bill Kelly: Additionally, their commitment to clinician training involving learners at all levels presents a significant opportunity for our team to validate training protocols and the clinical and economic benefits of our single port system with the next generation of surgeons. Our partnership with LSU Health New Orleans marks our fifth hospital system alliance to date, further reinforcing our confidence in our innovative single-port approach to surgical robotics and our potential to take a share of this market over time. I'll now turn the call over to Bill for a review of financial performance.

Adam Sachs: From there, the necessary design optimizations were outlined at both the system and sub-system levels, and the team promptly began the implementation of the system refinement. As it stands today, both pieces of capital equipment, the Surgical Compal and the patient cart are in the latter stages of planned refinement. Given the promising status of our patient cart, we conducted our first version 1.0 formative assessment, evaluating the surgeon and care team's bedside user experiences.

Speaker Change: Additionally, their commitment to clinician training involving learners at all levels presents a significant opportunity for our team to validate training protocols and the clinical and economic benefits of our single port system with the next generation of surgeons.

Adam Sachs: Our partnership with LSU Health New Orleans marks our fifth hospital system alliance to date, further reinforcing our confidence in our innovative single-port approach to surgical robotics and our potential to take a share of this market over time. I'll now turn the call over to Bill for a review of financial performance. Thank you, Adam. In the second quarter of 2024, operating expenses totaled $17.7 million, representing a year-over-year increase of 17% and reflecting the success of last year's efforts to enhance capital efficiency and manage cash burn.

Speaker Change: Our partnership with LSU Health New Orleans marks our fifth hospital system alliance to date, further reinforcing our confidence in our innovative single-port approach to surgical robotics and our potential to take share of this market over time.

Phil Kelly: I'll now turn the call over to Phil for a review of financial performance. Thank you, Adam. In the second quarter of 2024, operating expenses total $17.7 million, representing a year-over-year increase of 17%. And reflecting the success of last year's efforts to enhance capital efficiency and manage cash per. R&D expenses for the second quarter of 2024 were $10.9 million compared to $12.7 million in the second quarter of 2023. General and administrative expenses for the second quarter of 2024 were $5.6 million, down from $7.1 million in the second quarter of 2023. And second quarter of 2024 sales and marketing expenses were $1.2 million versus $1.7 million in the second quarter of 2023.

Bill Kelly: In the second quarter of 2024, operating expenses totaled $17.7 million, representing a year-over-year increase of 17% and reflecting the success of last year's efforts to enhance capital efficiency and manage cash burden. R&D expenses for the second quarter of 2024 were $10.9 million compared to $12.7 million in the second quarter of 2023. General and administrative expenses for the second quarter of 2024 were $5.6 million, down from $7.1 million in the second quarter of 2023.

Adam Sachs: R&D expenses for the second quarter of 2024 were $10.9 million, compared to $12.7 million in the second quarter of 2023. General and Administrative expenses for the second quarter of 2024 were $5.6 million, down from $7.1 million in the second quarter of 2023.

Speaker Change: I'll now turn the call over to Bill for a review of financial performance.

Bill Kelly: Thank you, Adam.

Bill Kelly: In the second quarter of 2024, operating expenses totaled $17.7 million, representing a year-over-year increase of 17%, and reflecting the success of last year's efforts to enhance capital efficiency and manage cash burn.

Adam Sachs: Assessing human factors, such as maneuverability, docking, draping, and instrument insertion throughout the development cycle, ensure that our designs put the end user at heart and will deliver a top-tier customer experience. Overall, we are pleased with the results of our recent formative assessment and plan to continue with our Surgeon Council formative next. Regarding the system insurance, while we finalize the latest camera bill last month, our team continues to work through the enhancements of our most differentiated sub-system, the instrument hours.

Speaker Change: R&D expenses for the second quarter of 2024 were $10.9 million compared to $12.7 million in the second quarter of 2023.

Speaker Change: General and administrative expenses for the second quarter of 2024 were $5.6 million, down from $7.1 million in the second quarter of 2023.

Adam Sachs: Ensuring we are achieving the refined fidelity, range of motion, and the ability to capture the attention of our hospital system partners. I'm happy to say that with the pace of progress achieved in the second quarter, we remain on track for our V1.0 system integration this fall. Following the integration milestone, our plan includes informal verification of validation activities across the individual sub-systems and full system, incorporating both cataberec procedures and animal laps. We will then transition into the formal verification and validation process, where we will undergo a range of comprehensive benchmark testing, including system-specific evaluations that assess procedural capability and safety known as essential performance and safety testing.

Bill Kelly: The second quarter of 2024 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 of 2024 was $16.8 million, equating to an adjusted net loss of $2.86 per share, as compared to an adjusted net loss of $20.4 million, or $4.82 per share, in the second quarter of 2023. Gap's net loss for the second quarter of 2024 was $15.2 million.

William Kelly: The second quarter of 2024 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 of 2024 was $16.8 million, equating to an adjusted net loss of $2.86 per share, as compared to an adjusted net loss of $20.4 million, or $4.82 per share, in the second quarter of 2023. Gap's net loss for the second quarter of 2024 was $15.2 million.

Speaker Change: And second quarter 2024 sales and marketing expenses were $1.2 million versus $1.7 million in the second quarter of 2023.

Phil Kelly: Adjusted net loss for the second quarter of 2024 was $16.8 million, equating to an adjusted net loss of $2.86 per share. As compared to an adjusted net loss of $20.4 million or $4.82 per share in the second quarter of 2023. Gap net loss for the second quarter of 2024 was $15.2 million, equating to a net loss of $2.59 per share. This compares to a net loss of $15.3 million or $3.62 per share in the second quarter of 2023.

Speaker Change: Adjusted net loss for the second quarter of 2024 was $16.8 million.

Speaker Change: equating to an adjusted net loss of $2.86 per share as compared to an adjusted net loss of $20.4 million or $4.82 per share in the second quarter of 2023.

Speaker Change: Gap net loss for the second quarter of 2024 was $15.2 million, equating to a net loss of $2.59 per share. This compares to a net loss of $15.3 million, or $3.62 per share.

Bill Kelly: Acquired to a net loss of $2.59 per share. This compares to a net loss of $15.3 million, or $3.62 per share, in the second quarter of 2023. For a reconciliation of all non-GAAP measures to GAAP, please review our earnings pressure. We ended the second quarter of this year with $73 million in cash, cash equivalents, and short-term investments on our balance. This represents a second-quarter cash burn rate of approximately $11 million, which is slightly below the seasonally impacted first-quarter burn rate of $14 million.

William Kelly: Equating to a net loss of $2.59 per share, this compares to a net loss of $15.3 million, or $3.62 per share, in the second quarter of 2023. For a reconciliation of all non-GAAP measures to GAAP, please review our earnings pressures. We ended the second quarter of this year with $73 million in cash, cash equivalents, and short-term investments on our balance sheet. This represents a second quarter cash burn rate of approximately $11 million, which is slightly below the seasonally impacted first quarter burn of $14 million.

Adam Sachs: This includes, for example, biocompatibility and electromagnetic compatibility testing to assess interferences, environmental testing to gauge performance under various conditions and durability testing to assess long-term reliability. All of this testing is done to ensure our device needs regulatory standards and is safe and effective for clinical use. Once our system satisfies the essential performance and safety standards, we can confidently proceed with our first clinical patients and subsequent clinical trials, while simultaneously addressing the remaining verification and validation requirements related to human factors and manufacturing processes.

Phil Kelly: For our reconciliation of all non-GAAP measures to GAAP, please review our earnings press release. We ended the second quarter of this year with $73 million cash equivalents and short-term investments on our balance sheet. This represents a second quarter cash burn rate of approximately $11 million, which is slightly below the seemingly impacted first quarter burn of $14 million. We continue to expect the full year 2024 cash burn to be approximately $50 million. While we are focused on meeting our development schedule and executing upon our upcoming milestones, we are equally dedicated to upholding strong financial discipline. And ensuring efficient resource allocation.

Speaker Change: in the second quarter of 2023.

Speaker Change: For a reconciliation of all non-GAAP measures to GAAP, please review our earnings press release.

Speaker Change: We ended the second quarter of this year with $73 million cash, cash equivalents, and short-term investments on our balance sheet.

Speaker Change: This represents a second quarter cash burn rate of approximately $11 million, which is slightly below the seasonally impacted first quarter burn of $14 million.

Bill Kelly: We continue to expect the full-year 2024 cash burn to be approximately $50 million. While we are focused on meeting our development schedule and executing upon our upcoming milestones, we are equally dedicated to upholding strong financial discipline and Ensuring Efficient Resource Allocation. And with that, I'll turn the call back to Adam for closing remarks.

William Kelly: We continue to expect the full-year 2024 cash burn to be approximately $50 million. While we are focused on meeting our development schedule and executing upon our upcoming milestones, we are equally dedicated to upholding strong financial discipline and Ensuring Efficient Resource Allocation. And with that, I'll turn the call back to Adam for his closing remarks. Adam. Thanks, Bill. 2024 remains a pivotal development year for Vicarious Surgical as we march forward in our mission to improve lives by delivering a new, innovative approach to surgical robotics.

Speaker Change: We continue to expect the full year 2024 cash burn to be approximately $50 million.

Adam Sachs: With our first clinical patient that has participated around this time next year, our clinical and regulatory teams are diligently working with CRO to evaluate potential OUS clinical sites and their respective regulatory procedures and landscape. In an effort to avoid any unexpected regulatory changes and maintain our optionality, we have not yet announced a formal decision on clinical site selection, but intend to do so once appropriate.

Speaker Change: While we are focused on meeting our development schedule and executing upon our upcoming milestones, we are equally dedicated to upholding strong financial discipline

Adam Sachs: And with that, I'll turn the call back to Adam for closing remarks.

Speaker Change: and ensuring efficient resource allocation. And with that, I'll turn the call back to Adam for closing remarks, Adam.

Adam Sachs: Adam. Thanks, Phil. 2024 remains a pivotal development year for Vicarious Surgical as we march forward in our mission to improve lives by delivering a new innovative approach to surgical robotics. The strong execution by our team in the first half of this year's position has well to achieve our fall integration milestone. Having the way for our transition into the clinic next year and allowing us to showcase the immense value of our differentiated single-port system.

Adam Sachs: 2024 remains a pivotal development year for Vicarious Surgical as we march forward in our mission to improve lives by delivering a new, innovative approach to surgical robotics. The strong execution by our team in the first half of this year has positioned us well to achieve our fall integration milestone, paving the way for our transition into the clinic next year and allowing us to showcase the immense value of our differentiated single port system.

Adam Sachs: Thanks, Bill. 2024 remains a pivotal development year for Vicarious Surgical as we march forward in our mission to improve lives by delivering a new, innovative approach to surgical robotics.

Adam Sachs: As we continue to make strides in the development cycle, we are also thrilled to announce an exciting new partnership with LSU Health New Orleans, Louisiana's premier academic health institution. Renowned for high-quality academic and training programs, LSU Health New Orleans educates the maturity of Louisiana's healthcare professional. Their network includes the University Medical Center, a distinguished research and academic hospital known for its robust medical training facilities and comprehensive patient care services. As a leading regional provider, LSU Health New Orleans offers unique insights into administrative and clinical protocols, typical of regional care centers, yielding valuable perspectives to enhance our market strategy.

Adam Sachs: The strong execution by our team in the first half of this year has positioned us well to achieve our fall integration milestone, paving the way for our transition into the clinic next year and allowing us to showcase the immense value of our differentiated single port system. I want to express my gratitude to our dedicated employees, whose hard work and valuable contributions lay the foundation for our future success. Thank you to everyone who joined the call today.

Adam Sachs: I want to express my gratitude to our dedicated employees whose hard work and valuable contributions lay the foundation for our future success. Thank you to everyone to join the call today. We look forward to updating you on our continued progress in the quarters. Thank you.

Adam Sachs: I want to express my gratitude to our dedicated employees whose hard work and valuable contributions lay the foundation for our future success. Thank you to everyone who joined the call today. We look forward to updating you on our continued good progress in the quarter. Operator, we're now ready to take questions.

Speaker Change: I want to express my gratitude to our dedicated employees whose hard work and valuable contributions lay the foundation for our future success. Thank you to everyone who joined the call today. We look forward to updating you on our continued good progress in the quarters to come.

Adam Sachs: We look forward to updating you on our continued good progress in the quarter. Operator, we're now ready to take questions. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If, for any reason, you would like to remove a question, please press star followed by two.

Speaker Change: Operator, we're now ready to take questions.

Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If, for any reason, you would like to remove that question, please press star followed by two. Again, to ask a question, press star once. And as a brief reminder, if you're using a speakerphone, please remember to pick up your handset before asking a question. We will pause here briefly as questions are registered. The first question is from the line of Josh Jennings with Edie Cohen. You may proceed.

Operator: Again, to ask a question, press star once. And as a brief reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We will pause here briefly as questions are registered. The first question is from the line of Josh Jennings with Edie Cohen. You may proceed. Hi, guys, how are you doing? This is Eric on for Josh.

Cameron: We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If there are any reasons you would like to remove that question, please press star followed by two. Again, to ask a question, press star once. And as a brief reminder, if you're using a speaker phone, please remember to pick up your handset before asking a question.

Speaker Change: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star followed by 1 on your telephone keypad. If for any reason you would like to remove that question, please press star followed by 2. Again, to ask a question, press star once.

Adam Sachs: Additionally, their commitment to clinician training, involving learners at all levels presents a significant opportunity for our team to validate training protocols and the clinical and economic benefits of our single-port system with the next generation of students. Our partnership with LSU Health New Orleans marks our fifth hospital system alliance to date further reinforcing our confidence in our innovative single court approach to surgical robotics and our potential to take share of this market over time.

Speaker Change: And as a brief reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We will pause here briefly as questions are registered.

Cameron: We will pause here briefly.

Eric Anderson: The first question is from the line of Josh and Jennings with Ed Cohen. You may proceed. Hi guys, how are you doing?

Speaker Change: The first question is from the line of Josh Jennings with E.D. Cohen. You may proceed.

Eric Anderson: Thank you for taking the question. I wanted to start just on the balance sheet. With the cash you guys have on hand, I appreciate the guidance you gave there. How do you think about funding your clinical trial? Now that that's set to kick off sometime in 2025?

Eric Anderson: Hi guys, how are you doing? This is Eric on behalf of Josh.

Phil Kelly: This is Eric, all for Josh. Thank you for taking the question. I wanted to start just on the balance sheet. With the cash you guys have on hand, appreciate the guidance you gave there. How do you think about funding your clinical trial? Now that that's set, the kickoff sometime in 2025? Yeah, no, thanks for the question. As we said on the call, we ended the year, and the period was $73 million and reiterated our burden guidance for approximately $59 for this year. So that leaves us with a better part of another year to have worth of cash.

Phil Kelly: I'll now turn the call over to Phil for a review of financial performance. Thank you, Adam. In the second quarter of 2024, operating expenses total $17.7 million, representing a year over year increase of 17%. And reflecting the success of last year's efforts to enhance capital efficiency and manage cash per. R&D expenses for the second quarter of 2024 were $10.9 million compared to $12.7 million in the second quarter of 2023. General and administrative expenses for the second quarter of 2024 were $5.6 million down from $7.1 million in the second quarter of 2023.

Speaker Change: Hi guys, how are you doing? This is Eric on for Josh. Thank you for taking the question.

Speaker Change: I wanted to start just on the balance sheet. With the cash you guys have on hand, appreciate the guidance you gave there. How do you think about funding your clinical trial now that that's set to kick off sometime in 2025? Thank you.

Eric Anderson: Thank you for taking the question. I wanted to start just on the balance sheet with the cash you guys have on hand. Appreciate the guidance you gave there. How do you think about funding your clinical trial? Now that that's set to kick off sometime in 2025?

William Kelly: Yeah, no, thanks for the question. Yeah, as we said on the call, we ended the year under the period of $73 million, and reiterated our burden guidance for about approximately $50 million for this year. So that leaves us with a better part of another year and a half worth of cash.

Speaker Change: Yeah, no, thanks for the question. Yeah, as we said on the call, we ended the year, ended the period with $73 million and.

Bill Kelly: Yeah, no, thanks for the question. Yeah, as we said on the call, we ended the year under the period of $73 million, and reiterated our burden guidance of about $50 million for this year. So that leaves us with a better part of another year and a half of cash. Obviously, a strong balance sheet has been a hallmark of this company since we went public, and we'll continue to be good stewards of capital to make sure that we take advantage of opportunities to augment that in the future.

Speaker Change: reiterated our burden guidance for you about approximately $50 million for this year so that leaves us with a better part of another year and a half worth of cash.

William Kelly: Obviously, a strong balance sheet has been a hallmark of this company since we went public, and we'll continue to be good stewards of capital to make sure that we take advantage of opportunities to augment that in the future. But really, right now, our focus is executing on the milestones in front of us, you know, the version 1.0 integration this fall, first clinical patient next year, and so on from there. But It's a good question.

Phil Kelly: Obviously, a strong balance sheet has been a hallmark of this company since we've gone public, and we'll continue to be good students of capital to make sure that we take advantage of opportunities to augment that in the future. But really right now our focus is executing on the milestones in front of us, the version 1.0 integration this fall, the first clinical patient next year, and so on from there. But it's a good question, but obviously you'll look at the right time. And if I can also come on top for a second here, I did want to emphasize that, you know, what we're formally guiding to is that first clinical patient.

Speaker Change: Obviously, a strong balance sheet has been a hallmark of this company since we've gone public.

Speaker Change: will continue to be good stewards of capital and make sure that we take advantage of opportunities to augment that in the future. But really right now, our focus is executing on the milestones in front of us.

Bill Kelly: But really, right now, our focus is executing on the milestones in front of us, you know, the version 1.0 integration this fall, first clinical patient next year, and so on from there. But it's a good question. But obviously, we'll look to update at the right time. And if I can help,

Phil Kelly: And second quarter of 2024 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 of 2024 was $16.8 million equating to an adjusted net loss of $2.86 per share. As compared to an adjusted net loss of $20.4 million or $4.82 per share in the second quarter of 2023. Gap net loss for the second quarter of 2024 was $15.2 million equating to a net loss of $2.59 per share.

Speaker Change: version 1.0 integration this fall, first clinical patient next year, and so on from there. But it's a good question, but obviously we'll look to update at the right time.

Adam Sachs: If I can also come on top for a second here, I did want to emphasize that what we are formally guiding here is that first clinical patient. This is not at all a standard first in human early feasibility study, but it's also not going to be formally part of our clinical trial. We're going to use it to evaluate the site, to evaluate the clinical trial protocols, and then roll as quickly as we can into the clinical trial after that. Keeping us on track for the other milestones that we are at.

Adam Sachs: But obviously, we'll look to update. And if I can also come on top for a second here, I did want to emphasize that, you know, what we're formally guiding through that first clinical patient, this is not at all a first, standard first in human early feasibility study, but it's also not going to be formally part of our clinical trial. We're going to use it to evaluate the site, to evaluate the clinical trial protocols, and then roll as quickly as we can into the clinical trial after that, you know, still keeping us on track for our other milestones that we are. Thanks for that!

Speaker Change: If I can also come on top for a second here, I did want to emphasize that what we're formally guiding here is that first clinical patient. This is not at all a standard first in human early feasibility study, but it's also not going to be formally part of our clinical trial. We're going to use it to evaluate the site.

Phil Kelly: You know, this is not at all a first standard person human and currently feasibility study, but it's also not going to be formally part of our clinical trial. We're going to use it to evaluate the site, to evaluate the clinical trial protocols, and then roll, I think, as quickly as we can into the clinical trial after that and still keeping up on track for our other milestones that we are adding to.

Speaker Change: to evaluate the clinical trial protocols and then roll as quickly as we can into the clinical trial after that.

Phil Kelly: This compares to a net loss of $15.3 million or $3.62 per share in the second quarter of 2023. For our reconciliation of all non-gap measures to gap, please review our earnings press release. We ended the second quarter of this year with $73 million cash equivalents and short-term investments on our balance sheet. This represents a second quarter cash burn rate of approximately $11 million, which is slightly below the seemingly impacted first quarter burn of $14 million.

Speaker Change: keeping us on track for our other milestones that we are guiding to.

Adam Sachs: Understood, thanks for that. And maybe on the US hospital partners, congrats on adding another one with LSU Health. I was just wondering if you could share some details and insights that those partners have been providing to you through the development process of your system and what role do you see them playing in the trial activity that you guys have coming up? Yeah, so one of the wonderful things about having all these hospitals and partners is to give us a ton of insight into all of the different stages, including informative assessments that we're conducting, and we'll continue to conduct on our system, going to verification and validation, understanding full care team experience.

Adam Sachs: And maybe on the US hospital partners, congrats on adding another one with LSU Health. I was just wondering if you could share some details and insights that those partners have been providing to you through the development process of your system, and what role do you see them playing in the trial activity that you guys have coming up? Yeah, so one of the wonderful things about having all these hospital system partners is it gives us a ton of insight into all of the different stages, including informative assessments that we're conducting, and we'll continue to conduct on our system, going through verification and validation, understanding the full care team experience, also the financial side, the purchasing supply chain components, and then rolling out into training of clinicians, something that we're already, of course, looking at and working That's great!

Adam Sachs: Understood. Thanks for that. And maybe on the US hospital partners, congrats on adding another one with LSU Health. I was just wondering if you could share.

Speaker Change: Understood. Thanks for that.

Speaker Change: and maybe on the U.S. hospital partners. Congrats on adding another one.

Speaker Change: with LSU Health. I was just wondering if you could share some details and insights that those partners have been providing to you through the development process of your system, and what role do you see them playing in the trial activity that you guys have coming up?

Adam Sachs: Yeah, so one of the wonderful things about having all these hospital system partners is it gives us a ton of insight into all of the different stages, including formative assessments that we're conducting, and we'll continue to conduct in our system, going through verification and validation, and understanding the full care team experience.

Speaker Change: Yeah, so one of the wonderful things about having all these hospital system partners is it gives us a ton of insight.

Phil Kelly: We continue to expect the full year 2024 cash burn to be approximately $50 million. While we are focused on meeting our development schedule and executing upon our upcoming milestones, we are equally dedicated to upholding strong financial discipline. And ensuring efficient resource allocation.

Speaker Change: into all of the different stages, including, you know, formative assessments that we're conducting and will continue to conduct on our system, going through verification and validation, understanding the full care team experience.

Adam Sachs: Both of the financial side, the purchasing supply chain components, and then rolling out into training of clinicians, something that we're already course looking at and working with them today, and we'll continue to do so all the way through our clinical trial and commercial law.

Speaker Change: Both of the financial side, the purchasing supply chain components, and then rolling out into training of clinicians, something that we're already, of course, looking at and working with them today, and we'll continue to do so all the way through our clinical trial and commercial launch.

Adam Sachs: And with that, I'll turn the call back to Adam for closing remarks. Adam. Thanks, Phil.

Adam Sachs: 2024 remains a pivotal development year for vicarious surgical as we march forward in our mission to improve lives by delivering a new innovative approach to surgical robotics. The strong execution by our team in the first half of this year's position has well to achieve our fall integration milestone. Having the way for our transition into the clinic next year and allowing us to showcase the immense value of our differentiated single-port system.

Adam Sachs: That's great. Thank you guys for taking the questions. Yeah, of course. Thanks for asking.

Speaker Change: That's great. Thank you guys for taking the questions.

Ryan Zimmerman: The next question is from the line of Ryan Zimmerman with the BTIG; you may proceed. It looks like your R&D and SG&A came in just a hair higher than what we were expecting, but overall your management of expenses has been pretty good so far.

Operator: The next question is from the line of Ryan Zimmerman with a BTG, I mean BTIG. You may proceed.

Unknown Executive: Thank you guys for taking the question. Yeah, of course. Thanks for asking. The next question is from the line of Ryan Zimmerman with BTIG.

Speaker Change: The next question is from the line of Ryan Zimmerman with a BTG, I mean BTIG. You may proceed.

Ryan Zimmerman: It looks like your R&D and SG&A came in just a hair higher than what we were expecting, but overall, your management of expenses has been pretty good so far. So as we move into the back half of the year, I was just wondering how you're thinking about the OPEC spend with that $50 million of cash burn in mind.

Speaker Change: [inaudible]

Ryan Zimmerman: It looks like your R&D and SG&A came in just a hair higher than what we were expecting, but overall your management of expenses has been pretty good so far. So as we move into the back half of the year, I was just wondering how you're thinking about the OPEC spend with that $50 million of cash burn in mind.

Ryan Zimmerman: You may proceed. It looks like your R&D and SG&A came in just a hair higher than we were expecting, but overall, your management of expenses has been pretty good so far. So as we move into the back half of the year, I was just wondering how you're thinking about the OPEC spend with that $50 million of cash burn in mind. Yeah, no, I think I'm sure we missed the beginning of that question or not, but I think we understand.

Phil Kelly: So, as we move into the back half of the year, I was just wondering how you're thinking about the off-ex spend with that 50 million of cash burn in mind. Yeah, no, I think I'm sure we missed the beginning of that question now, but I think we understand. Obviously, we do see a little bit of seasonal fluctuations, if you will, or just in some kind of time fluctuations. You know, we're really focused on the person 1.0 integration, and so in this past quarter, what we ended up, okay. So slightly higher than average external expenditures as we're purchasing materials and what not.

Bill Kelly: Yeah, no, I think, I'm sure we missed the beginning of that question, but I think we understand. Obviously, we do see a little bit of seasonal fluctuations, if you will, or just some time to time fluctuations. You know, we're really focused on the 1.0 integration.

Unknown Executive: We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If there are any reason you would like to remove that question, please press star followed by two again to ask a question, press star once and as a brief reminder, if you're using a speaker phone, please remember to pick up your hands and before asking a question.

Speaker Change: I think we missed the beginning of that question, but I think we understand.

Ryan Zimmerman: Obviously, we do see a little bit of seasonal fluctuations, if you will, or just some time-to-time fluctuations. We're really focused on the first version 1.0 integration, and so in this past quarter, what we ended up with was slightly higher than average external expenditures as we were purchasing materials and whatnot. So that's anticipated as we cut out the other questions. Guidance for the Year of the 50 million. So, you know, higher cash burn month and that cash burn quarter in Q1, lower cash burn in Q2, with just a little bit of fluctuations there.

Unknown Executive: We will pause here briefly.

Speaker Change: Obviously, we do see a little bit of seasonal fluctuations, if you will, or just some time-to-time fluctuations.

Bill Kelly: And so in this past quarter, we ended up with slightly higher than average external expenditures as we're purchasing materials and whatnot. So that's anticipated as we set out the guidance for the year on the $50 million. You had a higher cash burn month in that cash burn quarter in Q1, lower cash burn in Q2, with just a little bit of fluctuations there. So, you know, factored that into our guidance when we said it, and we still remain comfortable with, you know, approximately $50 million cash burn.

Speaker Change: We're really focused on the version 1.0 integration, and so in this past quarter, what we ended up getting was slightly higher-than-average external expenditures as we're purchasing materials and whatnot. That's anticipated as we set up the...

Phil Kelly: That's anticipated as we set up the guidance for the year on the 50 million, so you know, you have a higher cash burn month and cash burn quarter, a Q1 lower cash burning Q2 with just a little bit of fluctuations there. So, you know, factor that into our guidance when we said it, and we were still remain comfortable that approximately 50 million cash burn for the year.

Eric Anderson: The first question is from the line of Josh and Jennings with ED Cohen. You may proceed. Hi guys, how are you doing? This is Eric, all for Josh. Thank you for taking the question. I wanted to start just on the balance sheet. With the cash you guys have on hand, appreciate the guidance you gave there. How do you think about funding your clinical trial? Now that that's set the kickoff sometime in 2025?

Speaker Change: guidance for the year, the $50 million.

Speaker Change: We had a higher cash burn month and cash burn quarter in Q1, lower cash burn in Q2, and just a little bit of fluctuations there. So, you know, factored that into our guidance when we said it, and we still remain comfortable that, you know, approximately 50 million cash burn for the year.

Adam Sachs: That's helpful. Thank you. And then, just on the integration process, given that we're only a couple months out from that launch in the fall, what do you guys have left to do in preparation for that?

William Kelly: So, you know, factor that into our guidance when we said it, and we still remain comfortable that you have to keep approximately. That's helpful. Thank you. And then just on the integration process, given that we're only a couple months out from that launch in the fall, what do you guys have left to do in preparation for that? Yeah, it's a great question. So we're, you know, just in the kind of final stages of testing designs, evaluating everything at the subsystem level.

Phil Kelly: That's helpful.

Speaker Change: Thank you.

Phil Kelly: Thank you.

Adam Sachs: And then just on the integration process, given that we're only a couple of months out from launch in the fall, what do you guys have left to do in preparation for that? Yeah, it's a great question. So we're, you know, just in that kind of final stages of testing designs, evaluating everything at the subsystem level, and then, you know, we'll come off on the process of bringing everything together. So, there's still a lot to be done by, you know, that being said, the testing that we've done over the last couple of months and especially the previous versions testing that we get throughout the system, including at the full system level.

Speaker Change: That's helpful. Thank you. And then just on the integration process, given that we're only a couple months out from that launch in the fall, what do you guys have left to do in preparation for that?

Eric Anderson: Yeah, no, thanks for the question. As we said on the call, we ended the year and the period was $73 million and reiterated our burden guidance for approximately $59 for this year. So that leaves us with a better part of another year to have worth of cash. Obviously, a strong balance sheet has been a hallmark of this company since we've gone public and we'll continue to be good students of capital to make sure that we take advantage of opportunities to augment that in the future.

Adam Sachs: Yeah, it's a great question. So we're, you know, just in the kind of final stages of testing designs, evaluating everything at the subsystem level. And then, you know, we'll jump off the process of bringing everything together. So there's still a lot to be done. But you know, that being said, the testing that we've done over the last couple of months, and especially the previous version testing that we did throughout the system, including at the full system level, gives us a lot of confidence in the integration process and our ability to bring everything together. I do want to emphasize, though, that it's an incredibly complex system. That's why we built in time to address, you know, hiccups and remediate issues as they come.

Speaker Change: Yeah, it's a great question. So, we're, you know, just in that kind of final stages of testing designs, evaluating everything at the subsystem level.

Speaker Change: and then, you know, we'll jump off on the process of bringing everything together. So, there's still a lot to be done.

William Kelly: And then, you know, we'll jump off the process of bringing everything together. So there's still a lot to be done. But, you know, that being said, the testing that we've done over the last couple of months, and especially the previous version testing that we did throughout the system, including at the full system level, gives us a lot of confidence in the integration process and our ability to bring everything together. I do want to emphasize, though, that it's an incredibly complex system. That's why we built in time to address, you know, hiccups and remediate issues as they come.

Eric Anderson: But really right now our focus is executing on the milestones in front of us, the version 1.0 integration this fall, the first clinical patient next year, and so on from there. But it's a good question, but obviously you'll look at the right time. And if I can also come on top for a second here, I did want to emphasize that, you know, what we're formally guiding to is that first clinical patient.

Speaker Change: But, you know, that being said, the testing that we've done over the last couple of months, and especially the

Speaker Change: previous versions testing that we did throughout the system, including at the full system level.

Adam Sachs: It gives us a lot of confidence in the integration process and our ability to bring everything together, right.

Speaker Change: It gives us a lot of confidence in the integration process and our ability to bring everything together. I do want to emphasize, though, it's an incredibly complex system. That's why we built in time to address hiccups and remediate issues as they come.

Adam Sachs: I do want to emphasize, though, it's an incredibly complex system. That's why we built in time to address, you know, hiccups and remedial issues that, as they come. Great.

Eric Anderson: You know, this is not at all a first standard person human and currently feasibility study, but it's also not going to be formally part of our clinical trial. We're going to use it to evaluate the site, to evaluate the clinical trial protocols, and then roll, I think I was quickly, as we can into the clinical trial after that and still keeping up on track for our other milestones that we are adding to. Understood, thanks for that.

Ryan Zimmerman: Great, thanks for taking the questions.

William Kelly: Great. Thanks for taking the question. There are currently no questions registered.

Cameron: Thanks for taking the question.

Speaker Change: Great, thanks for taking the questions.

Ryan Zimmerman: There are currently no questions registered, so as a reminder, it is star one to ask a question. The next question is from the line of Ryan Zimmerman with BTIG. You may proceed. Hey guys, I was jumping between calls. I'm on, I'm on for a visit tonight, actually. It's Ryan. I'm on the trial.

Operator: So as a reminder, it is star number one to ask a question. The next question is from the line of Ryan Zimmerman with BT IG. You may proceed. Hey, hey, hey, guys. I was jumping between calls. I'm on I'm on for Izzy tonight, actually.

Operator: There are currently no questions registered. So, as a reminder, it is star number one to ask a question. The next question is from the line of Ryan Zimmerman with BT.

Speaker Change: there are currently no questions registered so as a reminder it is star one to ask a question

Adam Sachs: And maybe on the US hospital partners, congrats on adding another one with LSU health, I was just wondering if you could share some details and insights that those partners have been providing to you through the development process of your system and what role do you see them playing in the trial activity that you guys have coming up? Yeah, so one of the wonderful things about having all these hospitals and partners is to give us a ton of insight into all of the different stages, including informative assessments that we're conducting, and we'll continue to conduct on our system, going to verification and validation, understanding full care team experience.

Speaker Change: [inaudible]

Speaker Change: The next question is from the line of Ryan Zimmerman with BT IG. You may proceed. Hey guys, I was jumping between calls.

Ryan Zimmerman: Hey guys, I was jumping between calls. I'm on for Izzy tonight, actually. It's Ryan.

Ryan Zimmerman: It's Ryan. So why not ask a question about the trial? So, Adam, I heard you're not giving out specifics on the trial just yet. Anything, you know, any early thoughts about, you know, where you think it's appropriate, you know, geographically speaking, where you think you can get good data out of, you know, preliminary, Composition between potentially U.S. sites. All U.S. Nights.

Speaker Change: I'm on, I'm on for Izzy tonight, actually. It's Ryan. So, on the trial

Ryan Zimmerman: So, on the trial, so, so Adam, I heard, I heard you, you know, you're not giving out specifics on the trial just yet. Anything, you know, any early thoughts about, you know, where you think it's appropriate, you know, geographically speaking, where you think you can get good data out of, you know, preliminary Composition between potentially U.S. sites versus all U.S. sites. Any color at this point you can share with us would be appreciated. Yeah.

Adam Sachs: So Adam, I heard you're not giving out specifics on the trial just yet. Anything, you know, any early thoughts about, you know, where you think it's appropriate, you know, geographically speaking, where you think you can get good data out of, you know, preliminary. The composition between potentially US sites versus all US sites. Any color at this point you can share with us would be appreciated. Yeah, for sure.

Speaker Change: So, Adam, I heard I heard you, you know, you're not giving out specifics on the trial just yet. Anything, you know, any early thoughts about, you know, where you think it's appropriate, you know, geographically speaking, where you think you can get good data out of, you know, preliminary.

Adam Sachs: Both of the financial side, the purchasing supply chain components and then rolling out into training of clinicians, something that we're already course looking at and working with them today, and we'll continue to do so all the way through our clinical trial and commercial law.

Adam Sachs: Any caller at this point you can share with us would be appreciated. Yeah. Yeah, for sure. So, what I'll say is that, in general, we'd like to avoid blazing a new path with this. And we've watched a handful of other surgical robotics companies get successful with de novo approval, actually, even without any US clinical data in the past couple of, really, past year or two. And that has given us a lot of confidence.

Speaker Change: the composition between potentially U.S. sites versus.

Speaker Change: Any caller at this point you can share with us would be appreciated.

Adam Sachs: Yeah, for sure. So, what I'll say is that, in general, we'd like to avoid blazing a new path for this. And we've watched a handful of other surgical robotics companies get successful with de novo approval, actually, even without any US clinical data in the past couple of years or so. And that has given us a lot of confidence.

Adam Sachs: So what I'll say is that, in general, we'd like to avoid blazing a new path for this. And we've watched a handful of other surgical robotics companies get successful to know about prove black sheep and without any US clinical data in the past couple of years. And that has given us a lot of confidence. So you know, the direction where we're currently heading is actually, you know, filing without any US clinical data doesn't mean we're not going to kick off a US clinical trial, but rather it's not sort of the critical path gate and plan of record here.

Speaker Change: Yeah

Speaker Change: Yeah, for sure.

Adam Sachs: So, what I'll say is that, in general, we'd like to avoid blazing a new path for this.

Adam Sachs: and we've watched a handful of other surgical robotics companies get successful DeNova approval actually even without any U.S. clinical data in the past couple of, really the past year or two.

Ryan Zimmerman: The next question is from the line of Ryan Zimmerman with the BTIG, you may proceed. It looks like your R&D and SGNA came in just a hair higher than what we were expecting but overall your management of expenses has been pretty good so far. So as we move into the back half of the year, I was just wondering how you're thinking about the off-ex spend with that 50 million of cash burn in mind.

Adam Sachs: So, you know, the direction we're currently heading is actually filing without any US clinical data. That doesn't mean we're not going to kick off a US clinical trial, but rather, it's not sort of the critical path gating plan of record here. South America is currently top of mind. And so is Australia. There are a few countries, you know, including Colombia, Chile, as well as, of course, Australia, that we've seen other companies do clinical trials in and get successful approval.

Adam Sachs: So, you know, the direction we're currently heading is actually, you know, filing without any US clinical data. It doesn't mean we're not going to kick off a US clinical trial, but rather, it's not sort of the critical path gating plan of record here. South America is currently top of mind. So is Australia, though.

Adam Sachs: And that has given us a lot of confidence. So, you know, the direction we're currently heading is actually, you know, filing without any U.S. clinical data. It doesn't mean we're not going to kick off a U.S. clinical trial, but rather it's not sort of the critical path gating plan of record here.

Adam Sachs: To tell the America is currently top of mind, so is Australia. There are a few countries, you know, including Colombia, Chile, as well as support Australia, that we've seen other companies do clinical trials and get successful approval. And because of exactly that, we're working with the CROs and the teams that have been able to pull that off in the past couple of years and are already working with them today and working with individual hospitals that incite actually a Chief Medical Officer who had a few of them last week.

Adam Sachs: South America is currently top of mind, so is Australia, though there are a few countries, you know, including Australia.

Adam Sachs: There are a few countries, you know, including Colombia, Chile, as well as, of course, Australia, that we've seen other companies do clinical trials in and get successful approval. And because of that, we're working with the CROs and the teams that have been able to pull that off in the past couple of years and are already working with them today and working with individual hospitals and vetting sites. Actually, our chief medical officer was at a few of them last. That's helpful, Adam.

Adam Sachs: Columbia, Chile, as well as of course Australia that we've seen other companies.

Phil Kelly: Yeah, no, I think I'm sure we missed the beginning of that question now, but I think we understand, obviously we do see a little bit of seasonal fluctuations if you will or just in some kind of time fluctuations, you know, we're really focused on the person 1.0 integration and so in this past quarter, what we ended up, okay. So slightly higher than average external expenditures as we're purchasing materials and what not.

Adam Sachs: And because of that, we're working with the CROs and the teams that have been able to pull that off in the past couple of years and are already working with them today, and working with individual hospitals and vetting sites. Actually, our chief medical officer was at a few of them last week.

Adam Sachs: do clinical trials in and get successful approval.

Adam Sachs: And because of exactly that, we're working with the CROs and the teams that have been able to pull that off.

Speaker Change: Adam Sachs, William Kelly Adam Sachs, William Kelly Adam Sachs, William Kelly

Adam Sachs: That's helpful, Adam. And then, you know, just on the partnerships. You know, appreciate that it gives you early feedback and whatnot. But when you think about your ability to get these partnerships together, do you feel like you have enough? Should we expect potentially more of these between now and commercial approval? I mean, what's the strategy, you know, and how much time do you dedicate to bringing in some of these new partnerships versus kind of focusing on the clinical trials at hand over the next, you know, call it 18 to 24 months?

Adam Sachs: And then, you know, just on the partnerships. You know, appreciate that it gives you early feedback and whatnot. But when you think about your ability to get these partnerships together, do you feel like you have enough? Should we expect potentially more of these between now and commercial approval?

Adam Sachs: That's helpful, Adam. And then, you know, just on the partnerships, you know, appreciate that it gives you early feedback and whatnot. But when you think about, you know, your ability to get these partnerships together, do you feel like you have enough? Do you should we expect essentially more of these between now and commercial approval? I mean, what's the strategy, you know, and how much time do you dedicate to bringing in some of these new partnerships versus kind of focusing on the clinical trials that and over the next, you know, call it 18 to 24 months.

Phil Kelly: That's anticipated as we set up the guidance for the year on the 50 million so you know, you have a higher cash burn month and cash burn quarter, a Q1 lower cash burning Q2 with just a little bit of fluctuations there. So, you know, factor that into our guidance when we said it, and we were still remain comfortable that approximately 50 million cash burn for the year.

Speaker Change: That's helpful, Adam. And then, you know, just on the partnerships,

Speaker Change: You know appreciate that it gives you early feedback and and whatnot But when you think about you know your ability to get these partnerships together

Unknown Executive: That's helpful.

Speaker Change: Do you feel like you have enough you should we expect?

Adam Sachs: I mean, what's the strategy, you know, and how much time do you dedicate to bringing in some of these new partnerships versus kind of focusing on the clinical trials at hand over the next, you know, call it 18 to 24 months? Yeah, it's hard to give a generalized answer to that. But I think that kind of is the answer. Each individual partnership really needs to offer significant value that's incremental and different from what the existing partnerships offer.

Adam Sachs: potentially more of these between now and commercial approval. I mean, what's the strategy, you know, and how much time do you dedicate to bringing in some of these new partnerships versus kind of focusing on the clinical trials at hand over the next, you know, call it 18 to 24 months?

Unknown Executive: Thank you.

Adam Sachs: And then just on the integration process, given that we're only a couple months out from launch in the fall, what do you guys have left to do in preparation for that? Yeah, it's a great question. So we're, you know, just in that kind of final stages of testing designs, evaluating everything at the subsystem level, and then, you know, we'll come off on the process of bringing everything together. So, there's still a lot to be done by, you know, that being said, the testing that we've done over the last couple of months and especially the previous versions testing that we get throughout the system, including at the full system level.

Adam Sachs: Yeah, it's hard to give a generalized answer to that, but I think that kind of is the answer. Each individual partnership really needs to offer significant value that is incremental and different from what the existing partnership offers. And because that it, you know, in the case of a few health, it offers a ton of insight in a different way, especially from a regional system perspective, where, you know, the other four health systems that we're working with really operate at either operated a national scale or, in one case, you know, operate very much like a national system, add a more regional scale.

Adam Sachs: Yeah, it's hard to give a generalized answer to that, but I think that kind of is the answer.

Speaker Change: Yeah, it's hard to give a generalized answer to that, but I think that kind of is the answer.

Adam Sachs: Each individual partnership really needs to offer significant value that's incremental and different from what the existing partnerships offer. And because that is, you know, in the case of LSU Health, it offers a ton of insight in a different way, especially from a regional system perspective, where, you know, the other four health systems that we're working with really operate at either a national scale or, in one case, operate very much like a national system at a more regional scale. And it gives us a different set of insights that are important to us and therefore justify the time that's invested. So, you know, there is no one-size-fits-all answer to that. Well, thank you for your

Speaker Change: each individual partnership really needs.

Unknown Executive: And because that is, you know, in the case of LSU Health, it offers a ton of insight in a different way, especially from a regional system perspective, where, you know, the other four health systems that we're working with really operate at either a national scale or, in one case, operate very much like a national system at a more regional scale. And it gives us a different set of insights that are important to us and therefore justify the time that's invested. So, you know, there is no one-size-fits-all answer there. Well, thank you for taking my question. I appreciate it.

Speaker Change: to offer significant value that's incremental and different from what the existing partnerships offer.

Speaker Change: and because of that, in the case of LSU Health,

Speaker Change: It offers a ton of insight in a different way, especially from a regional system perspective where, you know, the other four health systems that we're working with really operate

Adam Sachs: It gives us a lot of confidence in the integration process and our ability to bring everything together, right. I do want to emphasize though, it's an incredibly complex system. That's why we built in time to address, you know, hiccups and remedial issues that as they come.

Speaker Change: at either operate at a national scale or, or in one case, you know, operate very much like a national system at a more regional scale.

Adam Sachs: And it gives us a different set of insights that are important to us and therefore justify the time that's infected. So, you know, no one size fits all answer to that.

Unknown Executive: Great. Thanks for taking the question.

Speaker Change: And it gives us a different set of insights that are important to us and therefore justify the time that's invested. So, you know, no one-size-fits-all answer to that.

Adam Sachs: Well, thank you for taking my questions. Appreciate it. Yeah, thanks for joining.

Ryan Zimmerman: Well, thank you for taking my question. I appreciate it.

Speaker Change: Lucas

Drew Ranieri: Yeah, thanks for joining us. The next question is from the line of Drew Ranieri with Morgan Stanley. You may proceed. Everyone, thanks for taking the questions. I'll ask my two up front, but maybe just to piggyback on Ryan's question just now on the clinical data side. Just make sure you're still thinking about the current clinical pathway of doing hernia first and then venturing to others, or has there been any other kind of change in your indication strategy for the US?

Lucas: Well, thank you for taking my question. Appreciate it.

Drew Ranieri: The next question is from the line of Drew Ranieri with Morgan Family. You may perceive. Hey, everyone. Thanks for taking the questions. I'll ask my two up front, but maybe just to piggyback on Ryan's question just now on the clinical data side. Just to make sure you're still thinking about the current clinical pathway of doing hernia first and then venturing to others, or has there been any other kind of change in kind of your indication strategy for the US. And then just on the second, I'll let you answer that. I'll go into the second one.

Unknown Executive: There are currently no questions registered so as a reminder, it is star one to ask a question.

Drew Ranieri: The next question is from the line of Drew Ranieri with Morgan Stanley. You may proceed.

Lucas: The next question is from the line of Drew Raniere with Morgan Family. You may proceed.

Adam Sachs: And then just on the second one. I'll let you answer that one and then I'll go into the second one. Yeah, quick answer. Good question. No change at all, though. Same number of patients.

Drew Ranieri: Everyone, thanks for taking the questions. I'll ask my two up front, but maybe just to piggyback on Ryan's question just now on the clinical data side. Just make sure you're still thinking about the current clinical pathway of doing hernia first and then venturing to others, or has there been any other kind of change in your indication strategy for the US? And then, on the second one, I'll let you answer the first one and then I'll go into the second one.

Drew Raniere: Hey everyone, thanks for taking the questions. I'll ask my two up front but...

Drew Raniere: Maybe just to piggyback on Ryan's question just now on the clinical data side, just to make sure you're still thinking about...

Ryan Zimmerman: The next question is from the line of Ryan Zimmerman with BTIG. You may proceed. Hey guys, I was jumping between calls. I'm on, I'm on for a visit tonight actually. It's Ryan. I'm on the trial. So Adam, I heard you're not giving out specifics on the trial just yet. Anything, you know, any early thoughts about, you know, where you think it's appropriate, you know, geographically speaking, where you think you can get good data out of, you know, preliminary. The composition between potentially US sites versus all US sites. Any color at this point you can share with us would be appreciated.

Speaker Change: the current clinical pathway of doing hernia first and then venturing to others, or has there been any other kind of change in kind of your indication strategy for the U.S.? And then just on the second, I'll let you answer that one and then I'll go into the second one.

Adam Sachs: Yeah, quick answer. Good question. No change at all, though. Same number of patients and indication.

Adam Sachs: Yeah, quick answer. Good question. No change at all, though. Same number of patients.

Speaker Change: Yeah, quick answer. Good question. No change at all, though. Same number of patients, same indication.

Drew Ranieri: Okay. All right.

Adam Sachs: Okay. And then just on the the integration, you're comfortable, confident it's still on track for this fall. Just as you do think about bringing the subassemblies to the final assembly, I guess where do you see there could be potential risk? And I guess just how de-risk are you de-risk are these timelines that you're so confident in. Thanks for taking the questions. Yeah, look, I mean, I think that's an incredibly important question. Overall, the areas that were most likely to have hiccups along the way, it just come down to the overall complexity of it. There's no specific one area.

Drew Ranieri: Okay. All right. And then just on the deintegration, you're comfortable, confident, it's still on track for this fall. Just as you do think about bringing the subassemblies to the final assembly, I guess, where do you see there could be potential risk? And I guess just how de-risked are these timelines that you're still confident in? Thanks for taking the questions. Yeah, look, I mean, I think that's an incredibly important question. Overall, the areas where we're most likely to have hiccups along the way, it just comes down to overall complexity. There's no specific area. I mean, if there is one subsystem, it's probably the arms.

Speaker Change: I'll go.

Speaker Change: All right, and then just on the deintegration, you're comfortable, confident it's still on track for this fall. Just as you do think about bringing the sub-assemblies to the final assembly, I guess, where do you see there could be potential risk? And I guess just how de-risked are you, de-risked are these timelines that you're still confident in? Thanks for taking the questions.

Drew Ranieri: And then just on the de-integration, you're comfortable, confident it's still on track for this fall. Just as you do think about bringing the sub-assemblies to the final assembly, I guess, where do you see there could be potential risk? And I guess just how de-risked are these timelines that you're so confident in? Thanks for taking the question. Yeah, an incredibly important question.

Adam Sachs: Yeah, for sure. So what I'll say is that in general, we'd like to avoid blazing a new path for this. And we've watched a handful of other surgical robotics companies get successful to know about prove black sheep and without any US clinical data in the past couple of years. And that has given us a lot of confidence. So you know, the direction where we're currently heading is actually, you know, filing without any US clinical data doesn't mean we're not going to kick off a US clinical trial, but rather it's not sort of the critical path gate and plan of record here.

Adam Sachs: Yeah, look, I mean, I think that's an incredibly important question. Overall, the areas that we're most likely to have hiccups along the way, it just comes down to the overall complexity. There's no specific area.

Speaker Change: Yeah, uh, look, I mean, I think that's an incredibly important question.

Adam Sachs: I mean, if there is one subsystem, it's probably the arms. That's where a lot of our secret sauce is. And frankly, that's a huge benefit of what we're doing. The capital system is, you know, coming along incredibly well. And, you know, it's, I don't want to call it simple. It's still quite complicated in itself, but, you know, much, much less on the cutting edge, and we're a lot more confident in the risk there.

Adam Sachs: That's where a lot of our secret sauce is. And frankly, that's a huge benefit of what we're doing, the capital system is coming along incredibly well. And, you know, it's, I don't want to call it simple. It's still quite complicated in itself.

Speaker Change: But overall, the areas that were most likely to have hit us along the way, it just comes down to the overall complexity that is no specific one area. I mean, if there is one subsystem, it's probably the arms, it's where a lot of our secret sauce is and frankly, that's a huge benefit.

Adam Sachs: I mean, if there is one subsystem, it's probably the aren't. That's where a lot of our secret sauce is. And frankly, that's a huge benefit of what we're doing: the capital system is, you know, coming along incredibly well. And, you know, it's I don't want to call it simple; it's still quite complicated in itself. But, you know, much, much less on the cutting edge. And we're a lot more confident in the rest there. So that's all a lot winding way to say that I'm pretty confident in the B1.0 milestone that we've added, you know, time for remediation of any issues that come up before preview and be testing and.

Adam Sachs: To tell the America is currently top of mind, so is Australia. There are a few countries, you know, including Colombia, Chile as well support Australia that we've seen other companies do clinical trials and get successful approval. And because of exactly that, we're working with the CROs and the teams that have been able to pull that off in the past couple of years and are already working with them today and working with individual hospitals that incite actually a chief medical officer who had a few of them last week.

Speaker Change: of what we're doing is.

Speaker Change: The Capital System is, you know, coming along in April.

Speaker Change: incredibly well.

Speaker Change: and, you know, it's I don't want to call it simple, it's still quite complicated in itself. But, you know, much, much less on the cutting edge, and we're a lot more confident in the risk there. So that's all a long winding way to say that I'm pretty confident in the B1.0 milestone that we've added, you know, time for remediation of any issues that come up before pre B and B testing and.

Adam Sachs: But, you know, much, much less on the cutting edge, and we're a lot more confident in the risk there. So that's all a long way to say that I'm pretty confident in the B1.0 milestone that we've added time for remediation of any issues that come up before pre-B&B testing and even time to change the minor things that may come up. But, you know, that all being said, it's, you know, really learned anything over the last year, the level of complexity as you try to bring everything together, try to integrate everything, get it through the process, things do come up. So I'll say I'm about as confident as I can be, but there are real challenges.

Adam Sachs: Just even time to change the minor things that come that may come up, but, you know, that all being said, if, you know, I really learned anything over the last year, the level of complexity as you try to bring everything together, try to integrate everything, get it through the process, things do come up. So I'll say I'm about as confident as I can be, but there are real risks.

Speaker Change: just, even time to change the minor things that come, that may come up.

Adam Sachs: So that's all a long way to say that I'm pretty confident in the B1.0 milestone that we've added time for remediation of any issues that come up before pre-B&B testing and even time to change the minor things that may come up. But, you know, that all being said, it's, you know, really learned anything over the last year about the level of complexity, as you try to bring everything together, try to integrate everything, get it through the process. Things do come up. So I'll say I'm about as confident as I can be, but there are real

Operator: There are no additional questions waiting at this time. I would like to pass the conference back over to the management team for closing remarks. Yeah, if that's all the questions, then we're good to end the call. Thank you everybody for joining. That will conclude Vicarious Surgical's 2024 second quarter earnings call. Thank you for your participation.

Ryan Zimmerman: That's helpful, Adam.

Adam Sachs: And then, you know, just on the partnerships, you know, appreciate that it gives you early feedback and whatnot. But when you think about, you know, your ability to get these partnerships together, do you feel like you have enough? Do you should we expect essentially more of these between now and commercial approval?

Speaker Change: But you know that all being said

Speaker Change: If, you know, I really learned anything over the last year, the level of complexity as you try to bring everything together, try to integrate everything, get it through the process, things do come up.

Speaker Change: So I'll say I'm about as confident as I can be, but there are real risks.

Adam Sachs: I mean, what's the strategy, you know, and how much time do you dedicate to bringing in some of these new partnerships versus kind of focusing on the clinical trials that and over the next, you know, call it 18 to 24 months. Yeah, it's hard to give a generalized answer to that, but I think that kind of is the answer. Each individual partnership really needs to offer significant value that incremental and different from what the existing partnership offer.

Speaker Change: Thank you for watching, and I'll see you in the next video!

Speaker Change: [inaudible]

Cameron: There are no additional questions waiting at this time.

Operator: There are no additional questions waiting at this time. I would like to pass the conference back over to the management team for closing remarks.

Speaker Change: i

Caitlin Brosco: I would like to pass the conference back over to the management team for closer remarks. Yeah, it's, that's all the questions, and we're good to end the call. Thank you, everybody, for joining.

Speaker Change: There are no additional questions waiting at this time. I would like to pass the conference back over to the management team for closing remarks.

Unknown Executive: Yeah, if that's all the questions, then we're good to end the call. Thank you, everybody, for joining us.

Caitlin Brosco: That will conclude the Vicarious Surgical 2024 second quarter earnings call.

Operator: That will conclude Vicarious Surgical's 2024 second quarter earnings call. Thank you for your participation, and enjoy the rest of your day.

Speaker Change: That will conclude the Vicaria Surgicals 2024 2nd Quarter Earnings Call. Thank you for your participation and enjoy the rest of your day.

Caitlin Brosco: Thank you for your participation, and enjoy the rest of your day.

Adam Sachs: And because that it, you know, in the case of a few health, it offers a ton of insight in a different way, especially from a regional system perspective, where, you know, the other four health systems that we're working with really operate at either operated a national scale or in one case, you know, operate very much like a national system, add a more regional scale. And it gives us a different set of insights that are important to us and therefore justify the time that's infected.

Speaker Change: [inaudible]

Adam Sachs: So, you know, no one size fits all answer to that.

Ryan Zimmerman: Well, thank you for taking my questions. Appreciate it. Yeah, thanks for joining.

Drew Ranieri: The next question is from the line of Drew Ranieri with Morgan family. You may perceive.

Drew Ranieri: Hey, everyone. Thanks for taking the questions. I'll ask my two up front, but maybe just to piggyback on on Ryan's question just now on the clinical data side. Just to make sure you're still thinking about the current clinical pathway of doing hernia first and then venturing to others, or has there been any other kind of change in kind of your indication strategy for the US. And then just on the second, I'll let you answer that. I'll go into the second one. Yeah, quick answer. Good question. No change at all though. Same number of patients and indication.

Adam Sachs: Okay. And then just on the the integration, you're comfortable, confident, it's still on track for this fall. Just as you do think about bringing the subassemblies to the final assembly, I guess where do you see there could be potential risk? And I guess just how de-risk are you de-risk are these timelines that you're so confident in. Thanks for taking the questions. Yeah, look, I mean, I think that's an incredibly important question.

Adam Sachs: Overall, the areas that were most likely to have hiccups along the way, it just come down to the overall complexity of it. There's no specific one area. I mean, if there is one subsystem, it's probably the aren't. That's where a lot of our secret sauce is. And frankly, that's a huge benefit of what we're doing is the capital system is, you know, coming along incredibly well. And, you know, it's I don't want to call it simple, it's still quite complicated in itself.

Adam Sachs: But, you know, much, much less on the cutting edge. And we're we're a lot more confident in the rest there. So that's all a lot winding way to say that I'm pretty confident in the B1.0 milestone that we've added, you know, time for remediation of any issues that come up before preview and be testing and. Just even time to change the minor things that come that may come up, but, you know, that all being said, if, you know, I really learned anything over the last year, the level of complexity as you try to bring everything together, try to integrate everything, get it through the process, things do come up. So I'll say I'm about as confident as I can be, but there are real risks.

Unknown Executive: There are no additional questions waiting at this time.

Unknown Executive: I would like to pass the conference back over to the management team for closer remarks. Yeah, it's that's all the questions and we're good to end the call. Thank you everybody for joining.

Unknown Executive: That will conclude the vicarious surgical 2024 second quarter earnings call.

Unknown Executive: Thank you for your participation and enjoy the rest of your day.

Q2 2024 Vicarious Surgical Inc Earnings Call

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