Introduced acquisition of RE2, Inc.
Ended the primary quarter with $199 million in unrestricted money and money equivalents
Preliminary manufacturing of business items of Guardian® XO® industrial exoskeleton and Guardian® XT™ teleoperated dexterous robotic system nonetheless anticipated to start by the tip of 2022
SALT LAKE CITY, Could 11, 2022 (GLOBE NEWSWIRE) — Sarcos Expertise and Robotics Company (“Sarcos”) (NASDAQ: STRC and STRCW), a pacesetter within the improvement of extremely dexterous robotic methods that increase people to reinforce productiveness and security, at the moment introduced monetary outcomes for the quarter ending March 31, 2022.
Latest highlights embrace:
“Our most up-to-date key improvement was the announcement of our acquisition of RE2,” mentioned Kiva Allgood, President and CEO, Sarcos. “A second improvement location in Pittsburgh, one of many nation’s main robotics facilities, in addition to the addition of RE2’s world class engineering workforce will enable us to satisfy the wants of extra clients and provide options to a wider vary of use circumstances. The mix of RE2 and Sarcos is nice information for our workers, companions, clients, and stockholders,” mentioned Allgood.
Monetary outcomes
Whole income was $0.7 million within the first quarter, a decline from $1.8 million throughout the identical interval in 2021, pushed by a give attention to initiatives aligned with the corporate’s commercialization efforts and the timing of labor efforts on completely different initiatives.
Whole working bills for the primary quarter have been $26.4 million, in comparison with first quarter 2021 working bills of $7.0 million. 55% of this enhance was associated to increased stock-based compensation expense. Different basic and administrative bills additionally elevated, primarily on account of bills associated to public firm compliance prices and bills associated to the acquisition of RE2.
Analysis and improvement bills have been increased in comparison with the prior yr interval resulting from elevated headcount and overhead ensuing from investments to develop and commercialize our Guardian XO industrial exoskeleton and Guardian XT teleoperated dexterous robotic system. These expenditures have been centered on the recruitment of recent workforce members, notably in engineering and provide chain, and investments in manufacturing capabilities.
The primary quarter 2022 internet loss was $19.2 million, in comparison with a internet lack of $5.2 million in the identical interval of the prior yr, primarily because of the enhance in stock-based compensation expense and the rise in different basic and administrative and analysis and improvement bills mentioned beforehand.
Excluding sure objects, first quarter non-GAAP internet loss was $13.3 million or ($0.10) non-GAAP internet loss per diluted share in comparison with first quarter 2021 non-GAAP internet lack of $4.7 million or ($0.05) non-GAAP internet loss per diluted share. Non-GAAP internet loss excludes the impression of stock-based compensation expense, modifications within the worth of our warrant legal responsibility, and sure acquisition prices. A reconciliation of internet loss to non-GAAP internet loss is included on the finish of this launch.
Sarcos ended the quarter with $199 million in unrestricted money and money equivalents on its steadiness sheet. The dialogue on this press launch concerning Sarcos’ outcomes of operation for the three months ended March 31, 2022, doesn’t embrace the monetary outcomes of RE2, as Sarcos had not acquired RE2 as of March 31, 2022.
Growth outlook and monetary steerage
In keeping with earlier steerage, Sarcos continues to anticipate to start preliminary manufacturing of business items of its Guardian XO industrial exoskeleton and Guardian XT robotic system by the tip of 2022 for supply to clients early in 2023.
A number of demonstrations of the Guardian XT robotic Beta items to companions and clients have taken place in Sarcos’ facility because the begin of the yr and the corporate continues to anticipate that Guardian XT robotic Beta items will likely be positioned with clients for subject assessments in mid-2022.
As beforehand introduced, performance testing of key components of the primary Beta Guardian XO industrial exoskeleton is underneath means and the corporate continues to anticipate that Guardian XO robotic Beta items will likely be accessible for testing within the second half of 2022.
Excluding the impression of the RE2 acquisition, Sarcos continues to consider that its month-to-month money utilized in working actions and purchases of property and gear, will common $5.5 million for 2022. As well as, Sarcos continues to estimate a money impression for 2022 averaging roughly $1 million a month from the acquisition of widespread inventory for tax withholding obligations which Sarcos doesn’t at the moment anticipate to proceed in 2023. Because of this, Sarcos believes it can have a complete estimated month-to-month common use of money, or money burn, of roughly $6.5 million in 2022 (excluding the impression of the RE2 acquisition).
As a consequence of uncertainty round availability and lead-times, Sarcos has determined to start sourcing sure supplies and parts required for the manufacture of its business items in 2023. These purchases is not going to impression the corporate’s working bills for 2022 however are anticipated to impression the 2022 year-end money complete by as much as $3 million.
Sarcos remains to be assessing the impression of the acquisition of RE2 on firm earnings and money burn and the steerage mentioned above doesn’t embrace any expectations concerning RE2. Sarcos expects to supply steerage for the mixed firm on future earnings calls. Nonetheless, the corporate continues to consider that the acquisition of RE2 is not going to materially impression the mixed firm’s money burn within the close to time period.
Webcast
Sarcos will maintain a convention name to debate the primary quarter 2022 monetary outcomes, together with administration’s enterprise outlook, at 5:00 p.m. ET on Wednesday, Could 11, 2022. buyers can entry the webcast at investor.sarcos.com underneath the occasions part. A replay can even be accessible at investor.sarcos.com for one month after the decision.
For extra info on Sarcos, its management workforce, and its award-winning product portfolio, please go to www.sarcos.com.
About Sarcos Expertise and Robotics Company
Sarcos Expertise and Robotics Company (NASDAQ: STRC and STRCW) is a pacesetter in industrial robotic methods that increase human efficiency by combining human intelligence, intuition, and judgment with the energy, endurance, and precision of machines to reinforce worker security and productiveness, allow distant operations and scale back operational prices. Sarcos’ cell robotic methods, together with the Guardian® XO®, Guardian® XT™, Guardian® GT, and Guardian® S, together with the Sapien™ household of robotic arms, RE2 Detect™ laptop imaginative and prescient software program, and RE2 Mind™ autonomy software program, are designed to revolutionize the way forward for work wherever bodily demanding duties are required. Sarcos is headquartered in Salt Lake Metropolis, Utah, and now has a second location in Pittsburgh, PA. For extra info, please go to www.sarcos.com.
Ahead-Wanting Statements
This press launch incorporates forward-looking statements throughout the that means of the Personal Securities Litigation Reform Act of 1995, together with Sarcos’ product roadmap, together with the anticipated timing of product commercialization or new product releases; the anticipated advantages of the acquisition of RE2 and Sarcos’ potential to appreciate these advantages; Sarcos’ efficiency following the acquisition of RE2; buyer curiosity in Sarcos’ merchandise; and Sarcos’ use of and desires for capital. Ahead-looking statements are inherently topic to dangers, uncertainties and assumptions. Usually, statements that aren’t historic info, together with statements regarding attainable or assumed future actions, enterprise methods, occasions, or outcomes of operations, are forward-looking statements. These statements could also be preceded by, adopted by or embrace the phrases “believes,” “estimates,” “expects,” “initiatives,” “forecasts,” “might,” “will,” “ought to,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or “proceed” or comparable expressions. Such forward-looking statements contain dangers and uncertainties that will trigger precise occasions, outcomes or efficiency to vary materially from these indicated by such statements. These forward-looking statements are primarily based on Sarcos’ administration’s present expectations and beliefs, in addition to a variety of assumptions regarding future occasions. Nonetheless, there might be no assurance that the occasions, outcomes, or developments recognized in these forward-looking statements will happen or be achieved. Ahead-looking statements communicate solely as of the date they’re made, and Sarcos just isn’t underneath any obligation and expressly disclaims any obligation, to replace, alter or in any other case revise any forward-looking assertion, whether or not on account of new info, future occasions, or in any other case, besides as required by regulation. Readers ought to rigorously overview the statements set forth within the reviews which Sarcos has filed or will file now and again with the Securities and Change Fee (the “SEC”). Along with elements beforehand disclosed in Sarcos’ reviews filed with the SEC and people recognized on this press launch, the next elements, amongst others, might trigger precise outcomes to vary materially from forward-looking statements or historic efficiency: Sarcos’ potential to execute on its enterprise technique, deal with staffing shortages and provide chain disruptions, launch its merchandise inside anticipated timelines, develop new services and improve current services; Sarcos’ potential to reply quickly to rising expertise developments; Sarcos’ potential to compete successfully, recruit and retain certified personnel and handle development and prices; the flexibility to efficiently combine RE2’s operations, personnel, merchandise and applied sciences; the danger that the anticipated advantages of the deliberate acquisition of RE2 is probably not realized or might take longer than anticipated to be realized, together with on account of the impression of, or issues arising from, the combination of the 2 firms or on account of the economic system and aggressive elements within the areas the place Sarcos and RE2 do enterprise; basic aggressive, financial, geopolitical and market circumstances; and different dangers and uncertainties set forth within the part entitled “Danger Components” and “Cautionary Observe Relating to Ahead-Wanting Statements” in paperwork filed now and again with the SEC, together with Sarcos’ Quarterly Report on Kind 10-Q filed with the SEC on Could 11, 2022. The paperwork filed by Sarcos with the SEC could also be obtained freed from cost on the SEC’s web site at www.sec.gov.
SARCOS TECHNOLOGY AND ROBOTICS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in hundreds, besides share information)
| As of | ||||||||
| March 31, 2022 | December 31, 2021 | |||||||
| Property | ||||||||
| Present property: | ||||||||
| Money and money equivalents | $ | 198,958 | $ | 217,114 | ||||
| Accounts receivable | 800 | 788 | ||||||
| Unbilled receivables | 159 | 221 | ||||||
| Inventories, internet | 1,005 | 1,006 | ||||||
| Pay as you go bills and different present property | 6,969 | 9,202 | ||||||
| Whole present property | 207,891 | 228,331 | ||||||
| Property and gear, internet | 6,841 | 7,051 | ||||||
| Different non-current property | 460 | 441 | ||||||
| Whole property | $ | 215,192 | $ | 235,823 | ||||
| Liabilities and stockholders’ fairness | ||||||||
| Present liabilities: | ||||||||
| Accounts payable | $ | 1,629 | $ | 1,681 | ||||
| Accrued liabilities | 3,867 | 4,480 | ||||||
| Whole present liabilities | 5,496 | 6,161 | ||||||
| Warrant liabilities | 7,283 | 13,701 | ||||||
| Different non-current liabilities | 1,988 | 1,999 | ||||||
| Whole liabilities | 14,767 | 21,861 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ fairness: | ||||||||
| Widespread inventory, $0.0001 par worth, 990,000,000 shares approved as of March 31, 2022, and December 31, 2021; 139,026,245 and 137,722,658 shares issued and excellent as of March 31, 2022, and December 31, 2021, respectively | 14 | 14 | ||||||
| Further paid-in capital | 365,104 | 359,439 | ||||||
| Collected deficit | (164,693 | ) | (145,491 | ) | ||||
| Whole stockholders’ fairness | 200,425 | 213,962 | ||||||
| Whole liabilities and stockholders’ fairness | $ | 215,192 | $ | 235,823 | ||||
See Sarcos 10-Q submitting dated Could 11, 2022, for accompanying notes to the condensed consolidated monetary statements.
SARCOS TECHNOLOGY AND ROBOTICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in hundreds, besides share and per share information)
| Three Months Ended March 31, | |||||||
| | 2022 | 2021 | |||||
| Income, internet | $ | 743 | $ | 1,799 | |||
| Working bills: | |||||||
| Price of income | 488 | 1,202 | |||||
| Analysis and improvement | 5,881 | 2,815 | |||||
| Common and administrative | 17,792 | 2,314 | |||||
| Gross sales and advertising and marketing | 2,211 | 656 | |||||
| Whole working bills | 26,372 | 6,987 | |||||
| Loss from operations | (25,629 | ) | (5,188 | ) | |||
| Curiosity revenue (expense), internet | 11 | (10 | ) | ||||
| Achieve on warrant legal responsibility | 6,414 | — | |||||
| Different revenue, internet | 2 | — | |||||
| Loss earlier than provision for revenue taxes | (19,202 | ) | (5,198 | ) | |||
| Provision for revenue taxes | — | — | |||||
| Internet loss | $ | (19,202 | ) | $ | (5,198 | ) | |
| Internet loss per share: | |||||||
| Fundamental and diluted | $ | (0.14 | ) | $ | (0.05 | ) | |
| Weighted-average shares utilized in computing internet loss per share | |||||||
| Fundamental and diluted | 137,908,690 | 104,059,652 | |||||
See Sarcos 10-Q submitting dated Could 11, 2022, for accompanying notes to the condensed consolidated monetary statements.
SARCOS TECHNOLOGY AND ROBOTICS CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(in hundreds)
| Three Months Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| Money flows from working actions: | |||||||
| Internet loss | $ | (19,202 | ) | $ | (5,198 | ) | |
| Changes to reconcile internet loss to internet money utilized in working actions: | |||||||
| Inventory-based compensation | 10,850 | 173 | |||||
| Depreciation | 268 | 111 | |||||
| Change in truthful worth of warrant legal responsibility | (6,414 | ) | — | ||||
| Adjustments in working property and liabilities | |||||||
| Accounts receivable | (12 | ) | 985 | ||||
| Unbilled receivable | 62 | (423 | ) | ||||
| Inventories | 1 | (311 | ) | ||||
| Deferred transaction prices | — | (1,427 | ) | ||||
| Pay as you go bills and different present property | 2,233 | (1,105 | ) | ||||
| Different non-current property | (18 | ) | 2 | ||||
| Accounts payable | 403 | 454 | |||||
| Accrued liabilities | (616 | ) | 537 | ||||
| Accrued transaction charges | — | 1,133 | |||||
| Deferred hire | (6 | ) | — | ||||
| Different non-current liabilities | (1 | ) | 1,198 | ||||
| Internet money utilized in working actions | (12,452 | ) | (3,871 | ) | |||
| Money flows from investing actions: | |||||||
| Purchases of property and gear | (514 | ) | (962 | ) | |||
| Internet money utilized in investing actions | (514 | ) | (962 | ) | |||
| Money flows from financing actions: | |||||||
| Proceeds from notes payable | — | 2,000 | |||||
| Proceeds from train of inventory choices | 65 | 20 | |||||
| Shares repurchased for cost of tax withholdings | (5,254 | ) | — | ||||
| Buy of non-controlling curiosity | — | (200 | ) | ||||
| Cost of obligations underneath capital leases | (1 | ) | (1 | ) | |||
| Internet money (utilized in) supplied by financing actions | (5,190 | ) | 1,819 | ||||
| Internet lower in money, money equivalents | (18,156 | ) | (3,014 | ) | |||
| Money, money equivalents at starting of interval | 217,114 | 33,664 | |||||
| Money, money equivalents at finish of interval | $ | 198,958 | $ | 30,650 | |||
| Supplemental disclosure of non-cash actions: | |||||||
| Purchases of property and gear included in accounts payable at period-end | $ | — | $ | 45 | |||
| Leasehold enhancements paid by lessor | $ | — | $ | 424 | |||
See Sarcos 10-Q submitting dated Could 11, 2022, for accompanying notes to the condensed consolidated monetary statements.
Non-GAAP Monetary Measures
To complement our monetary statements introduced in accordance with GAAP and to supply buyers with extra info concerning our monetary outcomes, we’ve introduced on this launch non-GAAP internet loss and non-GAAP internet loss per share, every of that are non-GAAP monetary measures. Non-GAAP internet loss and non-GAAP internet loss per share usually are not primarily based on any standardized methodology prescribed by GAAP and usually are not essentially similar to equally titled measures introduced by different firms.
We outline non-GAAP internet loss as our GAAP measured internet loss excluding the impacts of stock-based compensation expense, acquire on forgiveness of notes payable, acquire or loss on change in truthful worth of spinoff devices and warrant liabilities, bills associated to a enterprise mixture and different non-recurring non-operating bills. We outline non-GAAP internet loss per share as non-GAAP internet loss divided by weighted common excellent shares.
Probably the most instantly comparable GAAP measure to non-GAAP internet loss is internet loss. Probably the most instantly comparable GAAP measure to non-GAAP internet loss per share is internet loss per share. We consider excluding the impression of the beforehand listed objects in calculating non-GAAP internet loss and non-GAAP internet loss per share can present a helpful measure for period-to-period comparisons of our core working efficiency. We monitor, and have introduced on this launch, non-GAAP internet loss and non-GAAP internet loss per share as a result of they’re every a key measure utilized by our administration and board of administrators to grasp and consider our working efficiency and to determine budgets. We consider non-GAAP internet loss and non-GAAP internet loss per share assist determine underlying developments in our enterprise that would in any other case be masked by the impact of the bills that we embrace in internet loss. Accordingly, we consider non-GAAP internet loss and non-GAAP internet loss per share present helpful info to buyers, analysts and others in understanding and evaluating our working outcomes, enhancing the general understanding of our previous efficiency.
Non-GAAP internet loss and non-GAAP internet loss per share usually are not ready in accordance with GAAP and shouldn’t be thought-about in isolation of, or as a substitute for, measures ready in accordance with GAAP. There are a variety of limitations associated to using non-GAAP internet loss and non-GAAP internet loss per share reasonably than internet loss and internet loss per share, which is for every probably the most instantly comparable monetary measure calculated and introduced in accordance with GAAP. As well as, the bills and different objects that we exclude in our calculations of non-GAAP internet loss and non-GAAP internet loss per share might differ from the bills and different objects, if any, that different firms might exclude from non-GAAP internet loss and non-GAAP internet loss per share after they report their working outcomes, limiting the usefulness of non-GAAP internet loss and non-GAAP internet loss per share for comparative functions.
As well as, different firms might use different measures to guage their efficiency, all of which might scale back the usefulness of non-GAAP internet loss and non-GAAP internet loss per share as instruments for comparability.
The next desk reconciles non-GAAP internet loss to internet loss, probably the most instantly comparable monetary measure calculated and introduced in accordance with GAAP (in hundreds, besides share and per share information):
| Three Months Ended March 31, | |||||||
| | 2022 | 2021 | |||||
| Internet loss | $ | (19,202 | ) | $ | (5,198 | ) | |
| Non-GAAP changes: | |||||||
| Inventory-based compensation expense | 10,850 | 173 | |||||
| Achieve on warrant legal responsibility | (6,414 | ) | — | ||||
| Bills associated to enterprise combos(1) | 1,473 | 284 | |||||
| Non-GAAP internet loss | $ | (13,293 | ) | $ | (4,741 | ) | |
| Internet loss per share | |||||||
| Fundamental and diluted | $ | (0.14 | ) | $ | (0.05 | ) | |
| Non-GAAP internet loss per share | |||||||
| Fundamental and diluted | $ | (0.10 | ) | $ | (0.05 | ) | |
| Weighted-average shares utilized in computing internet loss per share | |||||||
| Fundamental and diluted | 137,908,690 | 104,059,652 | |||||
(1) Bills associated to our enterprise combos with RE2, Inc., throughout 2022, and Rotor Acquisition Corp., throughout 2021, are included inside basic and administrative bills throughout the condensed consolidated statements of operations and complete loss.
Investor Contact:
Ben Mimmack
Head of Investor Relations
(801) 419-0438
[email protected]
[email protected]
