• Tue. Mar 28th, 2023

Sarcos Technologies and Robotics Corporation Announces Fourth


Mar 17, 2023

Delivered Fourth Quarter and Complete Year 2022 Income at the Higher Finish of Guidance
Accomplished Guardian® XM Production Aim and Debuted Prototype of Semi-Autonomous Baggage Loading Technique for Aviation Business

SALT LAKE CITY, March 16, 2023 (GLOBE NEWSWIRE) — Sarcos Technologies and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW), a leader in the style, improvement, and manufacture of sophisticated robotic systems and options that redefine human possibilities, these days announced economic benefits for the fourth quarter and complete year 2022 ended December 31, 2022.

2022 Highlights

  • Accomplished objective of generating ten units of the Guardian® XM in the fourth quarter
  • Demonstrated the functionality of the Guardian® XT™ hugely dexterous teleoperated robotics program to each government and industrial clients.
  • Demonstrated an outside-primarily based semi-autonomous baggage loading program prototype jointly created with Changi Airport Group
  • Awarded contract for the Collaborative Sensing Platform by Air Force Investigation Laboratory
  • Executed field trials demonstrating enhanced worker security and productivity for the U.S. Navy, which includes effectively testing a STARFISH Dexterous Underwater Robotic Gripper
  • Acquired and integrated RE2, a developer of autonomous and teleoperated mobile robotic systems for use in the aviation, building, defense, power and healthcare industries
  • Appointed Drew Hamer as Chief Economic Officer

“We ended the year sturdy by meeting our objective of generating ten Guardian® XM units in the fourth quarter,” mentioned Kiva Allgood, President and CEO, Sarcos. “2022 was a year of milestones and progress. Our acquisition and integration of RE2 expanded our capabilities, our solution line and our robotics knowledge. We effectively executed several field trials and demonstrations of our robotics skills in unstructured, outside environments in conditions that humans cannot or do not want to go. We also created marketplace precise options like the autonomous baggage loading program prototype in conjunction with Changi Airport Group.

“Together with business leaders Mortenson, JLG Industries, Array Technologies, and Pratt Miller, we completed the validation of a program created to improve security and efficiency in solar field building. This marketplace validation and field test milestone was a mission-crucial step on our path to commercializing our robotic solar field building option. Now we’re positioned to commence commercialization of 3 core robotic systems and our software program options and are prepared to move forward with production.”

Economic benefits
The discussion in this press release concerning Sarcos’ benefits of operations for the 3 months ended December 31, 2022, contains the economic benefits of RE2. The discussion of the benefits of operations for the complete year 2022 contains the economic benefits of RE2 for the period just after the closing of the acquisition on April 25, 2022.

Fourth quarter 2022 total income was $six.1 million, compared to $1. million in the course of the fourth quarter of 2021. The improve was mostly due to enhanced income from solution improvement contract revenues. Complete-year 2022 total income enhanced to $14.six million from $five.1 million for the complete-year of 2021 for the very same cause.

Total operating expenditures for the fourth quarter had been $101.three million, an improve from the fourth quarter 2021 operating expenditures of $28.six million. The improve was primarily due to a non-money goodwill impairment of $70.two million, which was mostly driven by the sustained reduce in the company’s publicly quoted share cost and marketplace capitalization. For the complete-year 2022, total operating expenditures enhanced by $105.five million to $191.six million, due primarily to the aforementioned goodwill impairment. Investigation and improvement expenditures enhanced by $16.six million as compared to the prior year due to enhanced labor and overhead expense as a outcome of enhanced headcount (due in portion to the RE2 acquisition) and third-celebration service provider expenses as the corporation focused on the improvement and commercialization of its Guardian XT, Guardian XM, Guardian Sea Class and Guardian XO goods. Price of income enhanced by $7.7 million in 2022 as compared to 2021, primarily due to the expenses related with solution improvement contracts.

Fourth quarter 2022 net loss was $92.three million or ($.61) per share, compared to a net loss of $34.1 million or ($.25) per share in the fourth quarter of the prior year. For the complete year 2022, net loss was $157.1 million or ($1.07) per share, compared to $81.five million or ($.72) per share in the prior year.

Fourth quarter non-GAAP net loss was $18. million or ($.12) per diluted share. Complete year non-GAAP net loss for 2022 was $67.four million, or ($.46) per diluted share. Reconciliation of net loss to non-GAAP net loss is integrated at the finish of this release.

Sarcos ended the year with $114.five million in unrestricted money, money equivalents, and marketable securities.

Improvement outlook and economic guidance
Sarcos believes that the production of Guardian XM and Guardian XT systems is on schedule and that initial industrial versions of each systems will be prepared for client delivery in the very first half of 2023. 

Sarcos believes that its very first quarter 2023 total income will be about $two.three million of Item Improvement Contract income. For the complete year 2023, total income is anticipated to variety in between $23 and $25 million. Item Improvement Contract income is anticipated to be about 80% of the mix and Item income the remainder. Item sales are anticipated to commence to ramp up in the second half of 2023.

Turning to operating expenditures, Sarcos believes its investigation and improvement expenditures will reduce slightly in 2023 as compared to 2022 due to its concentrate on solution improvement and as the corporation continues to leverage third-celebration service providers in its improvement activities. With the exception of stock-primarily based compensation expense, Sarcos expects its common and administrative expenditures in 2023 to improve slightly as the corporation performs on its commercialization pathway and maintains public corporation compliance specifications. Sales and marketing and advertising will improve slightly in 2023 in line with the anticipated income development in the future.

The Organization estimates money utilized in operating activities to typical about $six million per month in the course of the very first quarter of 2023. For the complete year of 2023, the Organization is happy with its liquidity and presently has no plans to do an equity financing in 2023, even though management frequently monitors liquidity, economic and enterprise benefits and outlook and marketplace situations and could adjust its plans if it determines it to be essential or advisable.

Conference contact and webcast
A conference contact and audio webcast with analysts and investors will be held these days at five:00 p.m. Eastern Time/two:00 p.m. Pacific Time to go over the benefits and answer inquiries.

  • To access the conference contact, please pre-register applying this hyperlink. Registrants will get confirmation with dial-in specifics.
  • Reside and archived webcast will be accessible on Sarcos investor relations site at investor.sarcos.com.

About Sarcos Technologies and Robotics Corporation
Sarcos Technologies and Robotics Corporation (NASDAQ: STRC and STRCW) styles, develops, and manufactures a broad variety of sophisticated mobile robotic systems that redefine human possibilities and are created to allow the safest most productive workforce in the globe. Sarcos robotic systems operate in difficult, unstructured, industrial environments and consist of teleoperated robotic systems, a powered robotic exoskeleton, and software program options that allow job autonomy. For much more details, please check out www.sarcos.com and connect with us on LinkedIn at www.linkedin.com/corporation/sarcos.

Forward-Searching Statements

This press release consists of forward-seeking statements inside the which means of the Private Securities Litigation Reform Act of 1995, which includes statements concerning Sarcos’ solution improvement, commercialization and availability timing, goods to be commercialized, income models, economic benefits and functionality and money use, intentions for future guidance, marketplace possibilities and client demand. Forward-seeking statements are inherently topic to dangers, uncertainties, and assumptions. Typically, statements that are not historical information, which includes statements regarding achievable or assumed future actions, enterprise approaches, events, or benefits of operations, are forward-seeking statements. These statements may possibly be preceded by, followed by, or consist of the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “aim,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or “continue” or comparable expressions. Such forward-seeking statements involve dangers and uncertainties that may possibly bring about actual events, benefits, or functionality to differ materially from these indicated by such statements. These forward-seeking statements are primarily based on Sarcos’ management’s present expectations and beliefs, as effectively as a quantity of assumptions regarding future events. Nevertheless, there can be no assurance that the events, benefits, or trends identified in these forward-seeking statements will take place or be accomplished. Forward-seeking statements speak only as of the date they are produced, and Sarcos is not beneath any obligation and expressly disclaims any obligation, to update, alter or otherwise revise any forward-seeking statement, irrespective of whether as a outcome of new details, future events, or otherwise, except as essential by law.

Readers should really very carefully critique the statements set forth in the reports which Sarcos has filed or will file from time to time with the Securities and Exchange Commission (the “SEC”), in unique the dangers and uncertainties set forth in the sections of these reports entitled “Risk Factors” and “Cautionary Note Relating to Forward-Searching Statements,” for a description of dangers facing Sarcos and that could bring about actual events, benefits or functionality to differ from these indicated in the forward-seeking statements contained herein. The documents filed by Sarcos with the SEC may be obtained no cost of charge at the SEC’s site at www.sec.gov.

(in thousands, except share information)

  As of   December 31,
  December 31,
 Assets      Current assets:      Cash and money equivalents $35,159  $217,114 Marketable securities  79,337   — Accounts receivable  1,866   788 Unbilled receivables  4,160   221 Inventories, net  3,562   1,006 Prepaid expenditures and other present assets  5,015   9,202 Total present assets  129,099   228,331 Property and gear, net  7,640   7,051 Intangible assets, net  19,116   — Operating lease assets  11,283   — Other non-present assets  487   441 Total assets $167,625  $235,823 Liabilities and stockholders’ equity      Current liabilities:      Accounts payable $three,620  $1,681 Accrued liabilities  6,025   4,480 Current operating lease liabilities  887   — Total present liabilities  10,532   6,161 Operating lease liabilities  12,387   — Other non-present liabilities  256   15,700 Total liabilities  23,175   21,861 Commitments and contingencies      Stockholders’ equity:      Common stock, $.0001 par worth, 990,000,000 shares authorized as of December 31, 2022, and December 31, 2021 154,252,704 and 137,722,658 shares issued and outstanding as of December 31, 2022, and December 31, 2021, respectively  15   14 Additional paid-in capital  447,073   359,439 Accumulated other complete loss  (17)  — Accumulated deficit  (302,621)  (145,491)Total stockholders’ equity  144,450   213,962 Total liabilities and stockholders’ equity $167,625  $235,823 

See Sarcos ten-K filing dated March 16, 2023, for accompanying notes to the consolidated economic statements.

(in thousands, except share and per share information)

  3 Months Ended
December 31,  Year Ended
December 31, 2022  2021 2022  2021 Revenue, net​$six,121  $1,004 ​$14,569  $five,075 Operating expenditures:​​     ​     Cost of income (exclusive of things shown separately under)  4,402   1,060   11,614   3,867 Research and development​ 10,197   6,118 ​ 34,144   17,516 General and administrative​ 12,896   18,960 ​ 63,480   58,059 Sales and marketing​ 2,747   2,510 ​ 9,949   6,624 Intangible amortization expense  819   —   2,184   — Goodwill impairment  70,236   —   70,236   — Total operating expenses​ 101,297   28,648 ​ 191,607   86,066 Loss from operations  (95,176)  (27,644)  (177,038)  (80,991)Interest revenue (expense), net  866   (four)  1,831   (34)Achieve (loss) on warrant liability  1,431   (eight,437)  13,442   (four,927)Achieve on forgiveness of notes payable  —   2,000   —   4,394 Other revenue, net  747   23   743   51 Loss prior to revenue tax (expense) benefit  (92,132)  (34,062)  (161,022)  (81,507)Earnings tax (expense) benefit  (179)  —   3,892   (1)Net loss $(92,311) $(34,062) $(157,130) $(81,508)Net loss per share​     ​     Basic and diluted​$(.61) $(.25)​$(1.07) $(.72)Weighted-typical shares utilized in computing net loss per share​     ​     Basic and diluted​ 152,051,799   137,703,090 ​ 146,839,273   113,184,357 

See Sarcos ten-K filing dated March 16, 2023, for accompanying notes to the consolidated economic statements.

(in thousands)

  Year Ended December 31,   2022  2021 Money flows from operating activities:      Net loss $(157,130) $(81,508)Adjustments to reconcile net loss to net money utilized in operating activities:      Stock-primarily based compensation  35,645   43,118 Depreciation of house and equipment  1,409   531 Amortization of intangible assets  2,184   — Change in fair worth of warrant liability  (13,442)  4,927 Gain on forgiveness of notes payable  —   (four,394)Amortization of investment discount  (1,494)  — Goodwill impairment  70,236   — Changes in operating assets and liabilities      Accounts receivable  (257)  263 Unbilled receivable  (1,972)  (two)Inventories  (two,090)  (299)Prepaid expenditures and other present assets  4,440   (eight,082)Other non-present assets  960   (148)Accounts payable  1,539   244 Accrued liabilities  (798)  2,619 Other non-present liabilities  (four,621)  628 Net money utilized in operating activities  (65,391)  (42,103)Money flows from investing activities:      Purchases of house and equipment  (1,498)  (four,688)Acquisition of a enterprise, net of money acquired  (29,687)  — Purchases of marketable securities  (177,860)  — Maturities of marketable securities  100,000   — Net money utilized in investing activities  (109,045)  (four,688)Money flows from financing activities:      Proceeds from notes payable  —   2,000 Proceeds from physical exercise of stock options  683   26 Shares repurchased for payment of tax withholdings  (eight,107)  (284)Acquire of non-controlling interest  —   (200)Payment of obligations beneath capital leases  (95)  (89)Proceeds from PIPE  —   220,000 Proceeds from Merger  —   25,359 Payments for transaction costs  —   (16,571)Net money (utilized in) supplied by financing activities  (7,519)  230,241 Net (reduce) improve in money, money equivalents  (181,955)  183,450 Cash, money equivalents at starting of period  217,114   33,664 Cash, money equivalents at finish of period $35,159  $217,114 Supplemental disclosure of money flow details:      Cash paid for interest $6  $11 Cash paid for revenue taxes $—  $2 Supplemental disclosure of non-money activities:      Common stock and assumed equity awards in connection with a enterprise acquisition $59,410  $— Purchases of house and gear integrated in accounts payable at period-end $33  $605 Leasehold improvements paid by lessor $—  $988 Unpaid transaction costs $—  $148 Assumption of warrant liabilities $—  $eight,774 

See Sarcos ten-K filing dated March 16, 2023, for accompanying notes to the consolidated economic statements.

Income BY Kind
(in thousands)

  3 Months Ended
December 31,  Year Ended
December 31,   2022  2021  2022  2021 Product Improvement Contract Revenue $six,036  $260  $14,239  $three,584 Product Revenue  85   744   330   1,491 Revenue, net $six,121  $1,004  $14,569  $five,075 


To supplement our economic statements presented in accordance with GAAP and to deliver investors with further details concerning our economic benefits, we have presented in this release non-GAAP net loss and non-GAAP net loss per share, every of which are non-GAAP economic measures. Non-GAAP net loss and non-GAAP net loss per share are not primarily based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other firms.

We define non-GAAP net loss as our GAAP measured net loss excluding the impacts of stock-primarily based compensation expense, acquire on forgiveness of notes payable, acquire or loss on adjust in fair worth of derivative instruments and warrant liabilities, expenditures associated to a enterprise mixture, goodwill impairment and other non-recurring non-operating expenditures. We define non-GAAP net loss per share as non-GAAP net loss divided by weighted typical outstanding shares.

The most straight comparable GAAP measure to non-GAAP net loss is net loss. The most straight comparable GAAP measure to non-GAAP net loss per share is net loss per share. We think excluding the influence of the previously listed things in calculating non-GAAP net loss and non-GAAP net loss per share can deliver a valuable measure for period-to-period comparisons of our core operating functionality. We monitor, and have presented in this release, non-GAAP net loss and non-GAAP net loss per share mainly because they are every a essential measure utilized by our management and board of directors to fully grasp and evaluate our operating functionality and to establish budgets. We think non-GAAP net loss and non-GAAP net loss per share aid recognize underlying trends in our enterprise that could otherwise be masked by the impact of the expenditures that we consist of in net loss. Accordingly, we think non-GAAP net loss and non-GAAP net loss per share deliver valuable details to investors, analysts and other individuals in understanding and evaluating our operating benefits, enhancing the general understanding of our previous functionality.

Non-GAAP net loss and non-GAAP net loss per share are not ready in accordance with GAAP and should really not be deemed in isolation of, or as an option to, measures ready in accordance with GAAP. There are a quantity of limitations associated to the use of non-GAAP net loss and non-GAAP net loss per share rather than net loss and net loss per share, which is for every the most straight comparable economic measure calculated and presented in accordance with GAAP. In addition, the expenditures and other things that we exclude in our calculations of non-GAAP net loss and non-GAAP net loss per share may possibly differ from the expenditures and other things, if any, that other firms may possibly exclude from non-GAAP net loss and non-GAAP net loss per share when they report their operating benefits, limiting the usefulness of non-GAAP net loss and non-GAAP net loss per share for comparative purposes.

In addition, other firms may possibly use other measures to evaluate their functionality, all of which could minimize the usefulness of non-GAAP net loss and non-GAAP net loss per share as tools for comparison.

The following table reconciles non-GAAP net loss to net loss, the most straight comparable economic measure calculated and presented in accordance with GAAP (in thousands, except share and per share information):

  3 Months Ended
December 31,  Year Ended
December 31, 2022  2021 2022  2021 Net loss $(92,311) $(34,062) $(157,130) $(81,508)Non-GAAP adjustments:            Stock-primarily based compensation expense  6,059   12,360   35,645   43,118 Gain on forgiveness of notes payable  —   (two,000)  —   (four,394)Achieve (loss) on warrant liability  (1,431)  8,437   (13,442)  4,927 Expenses associated to enterprise combinations(1)  —   —   1,935   1,794 Income tax advantage associated to enterprise combinations  179   —   (three,892)  — Goodwill impairment  70,236   —   70,236   — Employee Retention Credit  (765)  —   (765)  — Other non-operational expenditures(two)  —   520   —   520 Non-GAAP net loss $(18,033) $(14,745) $(67,413) $(35,543)Net loss per share            Basic and diluted $(.61) $(.25) $(1.07) $(.72)Non-GAAP net loss per share            Basic and diluted $(.12) $(.11) $(.46) $(.31)Weighted-typical shares utilized in computing net loss per share            Basic and diluted  152,051,799   137,703,090   146,839,273   113,184,357  (1)Expenditures associated to our enterprise combinations with RE2, Inc., in the course of 2022, and Rotor Acquisition Corp., in the course of 2021, are integrated inside common and administrative expenditures inside the consolidated statements of operations and complete loss.(two)Expenditures associated to estimated settlements for legal claims. These expenses are integrated inside common and administrative expenditures inside the consolidated statements of operations and complete loss.

Investor Make contact with:
Moriah Shilton

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