Overview

Vicarious Surgical is a company that is developing a new category of intelligent and affordable, single-port surgical robot. Their technology aims to improve patient outcomes, cost, and efficacy of surgical procedures by combining advanced miniaturized robotics, computer science, sensing, and 3D visualization.

The company estimates there are over 45 million soft tissue surgical procedures, including 3.9 million ventral hernia procedures, that could be addressable by their technology annually worldwide. However, the adoption of robot-assisted surgery has been slow due to several factors:

• Significant capital investment required for legacy robotic systems, with upfront costs of up to $2 million plus 10-20% annual maintenance.
• Low utilization of existing robotic systems due to their large size, limited portability, and long setup/turnover times.
• Limited capabilities of existing systems, which are ill-suited for many outpatient procedures.
• Difficulty of use, requiring extensive pre-planning and training for surgeons.

Vicarious Surgical’s single-port system with advanced miniaturized robotics and visualization is designed to address these limitations of open surgery and existing robotic approaches. The company plans to file a de novo application with the FDA for use in ventral hernia procedures as their first indication.

Recent Developments

Compliance with NYSE Continued Listing Requirements:

• On April 10, 2025, Vicarious Surgical received notice from the NYSE that it no longer met the minimum market capitalization standard for continued listing.
• The company has 45 days to submit a plan to the NYSE to regain compliance within 18 months.
• The current noncompliance does not affect the company’s ongoing business operations or SEC reporting requirements.

Financial Highlights

• Vicarious Surgical is pre-revenue as of March 31, 2025.
• The company incurred net losses of $15.4 million and $17.0 million for Q1 2025 and Q1 2024 respectively.
• The decrease in net loss was primarily due to lower research & development and sales & marketing expenses, partially offset by higher general & administrative costs.

Factors Affecting Results of Operations

• Revenue: Vicarious Surgical has not generated any revenue to date and does not expect revenue until it receives FDA authorization.
• Research & Development Expenses: These expenses are expected to vary based on the level and timing of new product development, clinical trials, and regulatory activities.
• General & Administrative Expenses: These expenses are expected to increase as the company expands its infrastructure and incurs additional costs associated with being a public company.
• Sales & Marketing Expenses: These expenses are expected to increase as the company prepares for product launch and increases customer awareness.
• Change in Fair Value of Warrant Liabilities: This non-cash item represents mark-to-market adjustments to outstanding warrants.
• Interest Income: Interest income on cash, cash equivalents, and short-term investments.

Liquidity and Capital Resources

• As of March 31, 2025, Vicarious Surgical had $37.4 million in cash, cash equivalents, and short-term investments.
• The company expects its current cash balance will only be sufficient to support operations into the first quarter of 2026.
• Vicarious Surgical may need to raise additional capital through equity or debt financing, collaborations, or other means to complete clinical trials, obtain market authorization, and commercialize its product.

Overall, Vicarious Surgical is a pre-revenue, pre-commercialization company developing an innovative surgical robotics platform. While it has made progress, the company faces challenges around compliance with NYSE listing requirements and the need to secure additional funding to support its ongoing operations and product development.