Vicarious Surgical Inc

Previous wording

The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our unaudited condensed consolidated results of operations and financial condition. The discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto contained in this Quarterly Report on Form 10-Q and the consolidated financial statements and notes thereto for the year ended December 31, 2023 contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2024, and our other public reports filed with the SEC. This discussion contains forward looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 and Part II, Item 1A of this Quarterly Report on Form 10-Q. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, and “the Company” are intended to mean the business and operations of Vicarious Surgical Inc. and its consolidated subsidiaries. The condensed consolidated financial statements for the three and six-month periods ended June 30, 2024 and 2023, respectively, present the financial position and results of operations of Vicarious Surgical Inc. and its consolidated subsidiaries. In preparing this MD&A, the Company presumes that readers have access to and have read the MD&A in our Annual Report on Form 10-K, pursuant to Instruction 2 to paragraph (b) of Item 303 of Regulation S-K.

Current wording

The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our unaudited condensed consolidated results of operations and financial condition. The discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto contained in this Quarterly Report on Form 10-Q and the consolidated financial statements and notes thereto for the year ended December 31, 2023 contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2024, and our other public reports filed with the SEC. This discussion contains forward looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 and Part II, Item 1A of this Quarterly Report on Form 10-Q. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, and “the Company” are intended to mean the business and operations of Vicarious Surgical Inc. and its consolidated subsidiaries. The condensed consolidated financial statements for the three and nine-month periods ended September 30, 2024 and 2023, respectively, present the financial position and results of operations of Vicarious Surgical Inc. and its consolidated subsidiaries. In preparing this MD&A, the Company presumes that readers have access to and have read the MD&A in our Annual Report on Form 10-K, pursuant to Instruction 2 to paragraph (b) of Item 303 of Regulation S-K.

Previous wording

The single-port Vicarious Surgical System with advanced, miniaturized robotics and exceptional visualization is designed to address the significant limitations of open surgery and existing single- and multi-port robotic surgical approaches to improve patient outcomes and enhance adoption by hospitals and other medical facilities. The Vicarious Surgical System is designed with a fundamentally different architecture, and proprietary “de-coupled actuators,” to overcome many of the limitations of open surgery or existing robot-assisted surgical procedures with a minimally invasive and more capable robotic system. This architecture enables unprecedented dexterity inside the abdomen through an ultra-thin support tube, providing significant improvement over existing legacy robotic systems and minimizing the complications and trauma associated with open surgery. The Vicarious Surgical System has not yet been authorized by the FDA. We have had pre-submission meetings with the FDA to align on our regulatory strategy and plan to file a de novo application with the FDA for use in ventral hernia procedures as our first indication.

Current wording

The single-port Vicarious Surgical System with advanced, miniaturized robotics and exceptional visualization is designed to address the significant limitations of open surgery and existing single- and multi-port robotic surgical approaches to improve patient outcomes and enhance adoption by hospitals and other medical facilities. The Vicarious Surgical System is designed with a fundamentally different architecture, and proprietary “de-coupled actuators,” to overcome many of the limitations of open surgery or existing robot-assisted surgical procedures with a minimally invasive and more capable robotic system. This architecture enables unprecedented dexterity inside the abdomen through an ultra-thin support tube, providing significant improvement over existing legacy robotic systems and minimizing the complications and trauma associated with open surgery. The Vicarious Surgical System has not yet been authorized by the Food and Drug Administration (the “FDA”). We have had pre-submission meetings with the FDA to align on our regulatory strategy and plan to file a de novo application with the FDA for use in ventral hernia procedures as our first indication.

Previous wording

As previously reported, on September 20, 2023, we received notice from the NYSE notifying us that, because average closing share price for the Company’s Class A common stock was less than $1.00 over a consecutive 30 trading-day period, the Company no longer met the NYSE’s continued listing criterion relating to minimum share price.

Current wording

As previously reported, on September 20, 2023, we received notice from the New York Stock Exchange (the “NYSE”) notifying us that, because average closing share price for the Company’s Class A common stock was less than $1.00 over a consecutive 30 trading-day period, the Company no longer met the NYSE’s continued listing criterion relating to minimum share price.

Previous wording

We incurred net losses of $32,206 and $42,256 for the six months ended June 30, 2024 and June 30, 2023, respectively. These losses include losses of $277 and $998 related to the change in valuation of our warrant obligations for the six months ended June 30, 2024 and June 30, 2023, respectively. Our loss from operations prior to the warrant loss and other income and expense items was $33,822 and $43,773 for the six months ended June 30, 2024 and June 30, 2023, respectively, representing a period-over-period gain of 23%, which was primarily due to decreases of $7,393 in personnel-related expenses, $1,488 in supplies and materials, and $953 in insurance expenses. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 37%, from an average of 205 people in the six months ended June 30, 2023 to an average of 129 people for the six months ended June 30, 2024.

Current wording

We incurred net losses of $49,927 and $57,960 for the nine months ended September 30, 2024 and September 30, 2023, respectively. These losses include a loss of $415 for the nine months ended September 30, 2024 and a gain of $3,705 for the nine months ended September 30, 2023 related to the change in valuation of our warrant obligations. Our loss from operations prior to the warrant loss and gain and other income and expense items was $51,577 and $65,125 for the nine months ended September 30, 2024 and 2023, respectively, representing a period-over-period gain of 21%, which was primarily due to decreases of $10,071 in personnel-related expenses, $1,684 in supplies and materials, and $1,317 in insurance expenses. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 35%, from an average of 199 people in the nine months ended September 30, 2023 to an average of 130 people for the nine months ended September 30, 2024.

Previous wording

The change in fair value of warrant liability represents the mark-to-market fair value adjustments to the outstanding Public Warrants and Private Placement Warrants assumed as part of the consummation of the Business Combination on September 17, 2021. The change in fair value of our Private Placement Warrants is primarily the result of the change in the underlying stock price of our stock used in the Black-Scholes option pricing model while the Public Warrants are marked-to-market based on their price on the New York Stock Exchange. The warrant liability was measured at fair value initially on September 17, 2021 and is remeasured at exercise, and for warrants that remain outstanding at the end of each subsequent reporting period.

Current wording

The change in fair value of warrant liability represents the mark-to-market fair value adjustments to the outstanding Public Warrants and Private Placement Warrants assumed as part of the consummation of the Business Combination on September 17, 2021. The change in fair value of our Private Placement Warrants is primarily the result of the change in the underlying stock price of our stock used in the Black-Scholes option pricing model while the Public Warrants are marked-to-market based on their price on the NYSE. The warrant liability was measured at fair value initially on September 17, 2021 and is remeasured at exercise, and for warrants that remain outstanding at the end of each subsequent reporting period.

Previous wording

Research and Development Expenses. R&D expenses decreased $1,790, or 14%, to $10,924 during the three months ended June 30, 2024, compared to $12,714 during the three months ended June 30, 2023. This decrease was primarily due to decreases of $2,696 of personnel-related expenses, $1,447 in materials and supplies, and offset by an increase of $2,537 in professional services. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 35%, from an average of 159 people in the three months ended June 30, 2023 to an average of 103 people in the three months ended June 30, 2024.

Current wording

Research and Development Expenses. R&D expenses decreased $2,240, or 17%, to $10,800 during the three months ended September 30, 2024, compared to $13,040 during the three months ended September 30, 2023. This decrease was primarily due to decreases of $2,067 of personnel-related expenses, $242 in software expenses, $185 in materials and supplies and partially offset by an increase of $298 in professional services. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 29%, from an average of 146 people in the three months ended September 30, 2023 to an average of 103 people in the three months ended September 30, 2024.

Previous wording

Sales and Marketing Expenses. S&M expenses decreased $469, or 28%, to $1,197 during the three months ended June 30, 2024, compared to $1,666 during the three months ended June 30, 2023. This decrease was primarily due to decreases of $402 in professional services and $74 in personnel-related expenses. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 23%, from an average of 13 people in the three months ended June 30, 2023 to an average of 10 people in the three months ended June 30, 2024.

Current wording

Sales and Marketing Expenses. S&M expenses decreased $193, or 14%, to $1,208 during the three months ended September 30, 2024, compared to $1,401 during the three months ended September 30, 2023. This decrease was primarily due to a decrease of $170 in personnel-related expenses. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 31%, from an average of 13 people in the three months ended September 30, 2023 to an average of 9 people in the three months ended September 30, 2024.

Previous wording

General and Administrative Expenses. G&A expenses decreased $1,486, or 21%, to $5,592 during the three months ended June 30, 2024, compared to $7,078 during the three months ended June 30, 2023. This decrease was primarily due to decreases of $449 in personnel-related expenses, $459 of insurance expense, and $389 in professional services. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 36%, from an average of 25 people in the three months ended June 30, 2023 to an average of 16 people in the three months ended June 30, 2024.

Current wording

General and Administrative Expenses. G&A expenses decreased $1,164, or 17%, to $5,747 during the three months ended September 30, 2024, compared to $6,911 during the three months ended September 30, 2023. This decrease was primarily due to decreases of $441 in personnel-related expenses, $370 in insurance expense, $221 in professional services and $77 in software expense. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 30%, from an average of 23 people in the three months ended September 30, 2023 to an average of 16 people in the three months ended September 30, 2024.

Previous wording

Change in Fair Value of Warrant Liabilities. The change in fair value of warrant liabilities during the three months ended June 30, 2024 was a $1,590 gain. The change in fair value of the warrant liability resulted from the remeasurement of the public and private placement warrant liabilities between March 31, 2024 and the end of the reporting period, June 30, 2024.

Current wording

Change in Fair Value of Warrant Liabilities. The change in fair value of warrant liabilities during the three months ended September 30, 2024 was a $138 loss. The change in fair value of the warrant liability resulted from the remeasurement of the Public Warrant and Private Placement Warrant liabilities between June 30, 2024 and the end of the reporting period, September 30, 2024.

Previous wording

Interest and Other Income. Interest and other income decreased by $126 to $918 during the three months ended June 30, 2024, compared to $1,044 during the three months ended June 30, 2023. The decrease was primarily due to a decrease in interest income from short-term investments.

Current wording

Interest and Other Income. Interest and other income decreased by $144 to $802 during the three months ended September 30, 2024, compared to $946 during the three months ended September 30, 2023. The decrease was primarily due to a decrease in interest income from short-term investments.

Previous wording

The following table sets forth our historical operating results for the six months ended June 30, 2024 and 2023:

Current wording

The following table sets forth our historical operating results for the nine months ended September 30, 2024 and 2023:

Previous wording

Research and Development Expenses. R&D expenses decreased $5,178, or 20%, to $20,892 during the six months ended June 30, 2024, compared to $26,070 during the six months ended June 30, 2023. This decrease was primarily due to decreases of $5,679 in personnel-related expenses and $1,464 in materials and supplies, and partially offset by an increase of $1,957 in professional services. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 34%, from an average of 158 people in the six months ended June 30, 2023 to an average of 104 people in the six months ended June 30, 2024.

Current wording

Research and Development Expenses. R&D expenses decreased $7,418, or 19%, to $31,692 during the nine months ended September 30, 2024, compared to $39,110 during the nine months ended September 30, 2023. This decrease was primarily due to decreases of $7,746 in personnel-related expenses, $1,649 in materials and supplies, $274 in software expense and partially offset by an increase of $2,255 in professional fees. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 32%, from an average of 155 people in the nine months ended September 30, 2023 to an average of 106 people in the nine months ended September 30, 2024.

Previous wording

Sales and Marketing Expenses. S&M expenses decreased $1,288, or 36%, to $2,338 during the six months ended June 30, 2024, compared to $3,626 during the six months ended June 30, 2023. This decrease was primarily due to decreases of $633 in personnel-related expenses and $549 in professional services. The decrease in personnel-related expense was due primarily to an average headcount decrease of 44%, from an average of 18 people in the six months ended June 30, 2023 to an average of 10 people for the six months ended June 30, 2024.

Current wording

Sales and Marketing Expenses. S&M expenses decreased $1,481, or 29%, to $3,546 during the nine months ended September 30, 2024, compared to $5,027 during the nine months ended September 30, 2023. This decrease was primarily due to decreases of $803 in personnel-related expenses and $558 in professional services. The decrease in personnel-related expense was due primarily to an average headcount decrease of 47%, from an average of 17 people in the nine months ended September 30, 2023 to an average of 9 people for the nine months ended September 30, 2024.

Previous wording

General and Administrative Expenses. G&A expenses decreased $3,485, or 25%, to $10,592 during the six months ended June 30, 2024, compared to $14,077 during the six months ended June 30, 2023. This decrease was primarily due to decreases of $1,081 in personnel-related expenses, $990 in insurance expense, $900 of professional fees, $117 in software expense and $296 in other operating costs. The decrease in personnel-related expense was due primarily to an average headcount decrease of 45%, from an average of 29 people in the six months ended June 30, 2023 to an average of 16 people for the six months ended June 30, 2024.

Current wording

General and Administrative Expenses. G&A expenses decreased $4,649, or 22%, to $16,339 during the nine months ended September 30, 2024, compared to $20,988 during the nine months ended September 30, 2023. This decrease was primarily due to decreases of $1,522 in personnel-related expenses, $1,359 in insurance expense, $1,122 of professional fees, $194 in software expense and $370 in other operating costs. The decrease in personnel-related expense was due primarily to a decrease in average headcount of 43%, from an average of 28 people in the nine months ended September 30, 2023 to an average of 16 people in the nine months ended September 30, 2024.

Previous wording

Change in Fair Value of Warrant Liabilities. The change in fair value of warrant liabilities during the six months ended June 30, 2024 was a $277 loss. The change in fair value of the warrant liability resulted from the remeasurement of the public and private placement warrant liabilities between December 31, 2023 and the end of the reporting period, June 30, 2024.

Current wording

Change in Fair Value of Warrant Liabilities. The change in fair value of warrant liabilities during the nine months ended September 30, 2024 was a $415 loss. The change in fair value of the warrant liability resulted from the remeasurement of the Public Warrant and Private Placement Warrant liabilities between December 31, 2023 and the end of the reporting period, September 30, 2024.

Previous wording

Interest and Other Income. Interest and other income decreased by $624 to $1,893 during the six months ended June 30, 2024, compared to $2,517 during the six months ended June 30, 2023. The decrease was primarily due to a decrease in interest income from short-term investments.

Current wording

Interest and Other Income. Interest and other income decreased by $768 to $2,695 during the nine months ended September 30, 2024, compared to $3,463 during the nine months ended September 30, 2023. The decrease was primarily due to a decrease in interest income from short-term investments.

Previous wording

Interest Expense. Interest expense decreased by $2 to $0 during the six months ended June 30, 2024, compared to $2 during the six months ended June 30, 2023. The decrease was primarily due to the equipment loans being paid off in April 2023.

Current wording

Interest Expense. Interest expense decreased by $3 to $0 during the nine months ended September 30, 2024, compared to $3 during the nine months ended September 30, 2023. The decrease was primarily due to the equipment loans being paid off in April 2023.

Previous wording

To date, our primary sources of capital have been private placements of preferred stock prior to the Business Combination, the recapitalization with D8 and the issuance of Class A common stock. Net cash used in our operating activities for the six months ended June 30, 2024 and the year ended December 31, 2023 was $25,479 and $62,305, respectively. As of June 30, 2024, we held cash and cash equivalents of $20,250, short-term investments of $52,980 and had an accumulated deficit of $164,918.

Current wording

To date, our primary sources of capital have been private placements of preferred stock prior to the Business Combination, the recapitalization with D8 and the issuance of common stock. Net cash used in our operating activities for the nine months ended September 30, 2024 and the year ended December 31, 2023 was $38,168 and $62,305, respectively. As of September 30, 2024, we held cash and cash equivalents of $7,069, short-term investments of $53,795 and had an accumulated deficit of $182,009.

Previous wording

Excluding the non-cash impact of potential changes in the fair value of warrant liabilities, we expect net losses to continue in connection with our ongoing activities, particularly as we continue to invest in commercialization and new product development. We believe our current cash, cash equivalents and short-term investments balance of $73,230 as of June 30, 2024 will be sufficient to support our operations beyond the next twelve months from the date of issuance of these financial statements. Our future capital requirements will depend on many factors, including, but not limited to, any changes in the size, number and scope of clinical trials we may be required to conduct, the timing and conditions of market authorization (if any) for the Vicarious Surgical System, whether we are able to successfully commercialize the Vicarious Surgical System, if approved, additional product candidates we may choose to develop, fluctuations in the cost and timing of our business activities, including manufacturing, hiring and protection of our intellectual property portfolio, and the other risks and uncertainties described in the “Risk Factors” sections in Part I, Item 1A in our Annual Report on Form 10-K filed with the SEC on March 4, 2024, in Part II, Item 1A in this Quarterly Report on Form 10-Q, and in other filings that we make with the Securities and Exchange Commission from time to time.

Current wording

Excluding the non-cash impact of potential changes in the fair value of warrant liabilities, we expect net losses to continue in connection with our ongoing activities, particularly as we continue to invest in commercialization and new product development. We believe our current cash, cash equivalents and short-term investments balance of $60,864 as of September 30, 2024 will be sufficient to support our operations beyond the next twelve months from the date of issuance of these financial statements. Our future capital requirements will depend on many factors, including, but not limited to, any changes in the size, number and scope of clinical trials we may be required to conduct, the timing and conditions of market authorization (if any) for the Vicarious Surgical System, whether we are able to successfully commercialize the Vicarious Surgical System, if approved, additional product candidates we may choose to develop, fluctuations in the cost and timing of our business activities, including manufacturing, hiring and protection of our intellectual property portfolio, and the other risks and uncertainties described in the “Risk Factors” sections in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 4, 2024, in Part II, Item 1A in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed with the SEC on August 13, 2024, and in other filings that we make with the SEC from time to time.

Previous wording

On October 7, 2022, we filed a universal shelf registration statement on Form S-3 (the “Form S-3”), which was declared effective by the SEC on October 27, 2022, on which we registered for sale up to $400 million of any combination of our Class A common stock, preferred stock, debt securities, warrants, rights and/or units from time to time and at prices and on terms that we may determine, which includes up to $100 million of Class A common stock that we may issue and sell from time to time, through Cowen and Company, LLC acting as our sales agent, pursuant to the sales agreement that we entered into with Cowen and Company, LLC on October 7, 2022 for our “at-the-market” equity program. In December 2022, we issued 3,048,781 shares of Class A common stock under our sales agreement with Cowen and Company, LLC, resulting in gross proceeds of $10.0 million. We did not issue any Class A common stock under our sales agreement with Cowen and Company, LLC during the six months ended June 30, 2024.

Current wording

On October 7, 2022, we filed a universal shelf registration statement on Form S-3 (the “Form S-3”), which was declared effective by the SEC on October 27, 2022, on which we registered for sale up to $400 million of any combination of our Class A common stock, preferred stock, debt securities, warrants, rights and/or units from time to time and at prices and on terms that we may determine, which includes up to $100 million of Class A common stock that we may issue and sell from time to time, through Cowen and Company, LLC acting as our sales agent, pursuant to the sales agreement that we entered into with Cowen and Company, LLC on October 7, 2022 for our “at-the-market” equity program. In December 2022, we issued 3,048,781 shares of Class A common stock under our sales agreement with Cowen and Company, LLC, resulting in gross proceeds of $10.0 million. We did not issue any Class A common stock under our sales agreement with Cowen and Company, LLC during the nine months ended September 30, 2024.

Previous wording

Our cash and cash equivalents and short-term investments balance as of June 30, 2024 was $20,250 and $52,980, respectively. Our future capital requirements may vary from those currently planned and will depend on various factors, including the timing and extent of R&D spending and spending on other strategic business initiatives.

Current wording

Our cash and cash equivalents and short-term investments balance as of September 30, 2024 was $7,069 and $53,795, respectively. Our future capital requirements may vary from those currently planned and will depend on various factors, including the timing and extent of R&D spending and spending on other strategic business initiatives.

Previous wording

Net cash used in operating activities during the six months ended June 30, 2024 was $25,479, attributable to a net loss of $32,206 offset by a $631 net change in our net operating assets and liabilities and non-cash items of $7,358. Non-cash items consisted of $6,157 in stock-based compensation, a loss of $277 due to the change in fair value of our warrant liabilities, $1,058 of depreciation and amortization, $438 for non-cash lease expense, a $35 loss on disposal of property and equipment and partially offset by a $607 change in accrued interest and net accretion of discounts on marketable securities. The $631 change in our net operating assets and liabilities was due to a $280 decrease in accrued expenses, a $503 decrease in lease liabilities, and a $18 decrease in other noncurrent assets and was partially offset by a $73 increase in prepaid and other current assets a $97 increase in accounts payable.

Current wording

Net cash used in operating activities during the nine months ended September 30, 2024 was $38,168, attributable to a net loss of $49,297, offset by a $113 net change in our net operating assets and liabilities and non-cash items of $11,016. Non-cash items consisted of $9,094 in stock-based compensation, $1,565 of depreciation and amortization, a loss of $415 due to the change in fair value of our warrant liabilities, $665 for non-cash lease expense and partially offset by a loss of $725 due to the change in accrued interest and net accretion of discounts on marketable securities. The $113 change in our net operating assets and liabilities was due to a $684 decrease in prepaid and other current assets, a $137 decrease in accounts payable, a $25 decrease in other noncurrent assets, a $39 increase in accrued expenses and was partially offset by a $772 decrease in lease liabilities.

Previous wording

Net cash used in operating activities during the six months ended June 30, 2023 was $33,652, attributable to a net loss of $42,256 offset by a $183 net change in our net operating assets and liabilities and non-cash items of $8,421. Non-cash items consisted of $6,578 in stock-based compensation, a loss of $998 due to the change in fair value of our warrant liabilities, $882 of depreciation and amortization, $397 for non-cash lease expense and partially offset by a $434 change in accrued interest and net accretion of discounts on marketable securities. The $183 change in our net operating assets and liabilities was due to a $1,698 increase in prepaid and other current assets and was partially offset by a $872 decrease in accrued expenses, a $374 decrease in lease liabilities, a $181 decrease in accounts payable, and a $88 decrease in other noncurrent assets.

Current wording

Net cash used in operating activities during the nine months ended September 30, 2023 was $50,935, attributable to a net loss of $57,960, a $426 net change in our net operating assets and liabilities and offset by non-cash items of $7,451. Non-cash items consisted of $10,192 in stock-based compensation, a gain of $3,705 due to the change in fair value of our warrant liabilities, $1,329 of depreciation and amortization, $604 for non-cash lease expense and partially offset by a loss of $969 due to the change in accrued interest and net accretion of discounts on marketable securities. The $426 change in our net operating assets and liabilities was due to a $542 decrease in accrued expenses, a $603 decrease in lease liabilities, a $201 decrease in accounts payable, and a $54 increase in other noncurrent assets and was partially offset by a $974 decrease in prepaid and other current assets.

Previous wording

Net cash used by investing activities for the six months ended June 30, 2024 was $7,095 consisting of $38,892 used for purchases of available-for-sale investments and $16 for fixed asset purchases, and partially offset by $31,813 in proceeds from sales and maturities of available-for-sale investments.

Current wording

Net cash used by investing activities for the nine months ended September 30, 2024 was $7,587 consisting of $52,784 used for purchases of available-for-sale investments, and partially offset by proceeds of $45,182 from sales and maturities of available-for-sale investments and $15 for fixed asset sales.

Previous wording

Net cash used by investing activities for the six months ended June 30, 2023 was $50,184 consisting of $62,205 used for purchases of available-for-sale investments and $514 for fixed asset purchases, and partially offset by $12,535 in proceeds from sales and maturities of available-for-sale investments.

Current wording

Net cash used by investing activities for the nine months ended September 30, 2023 was $50,828 consisting of $62,731 used for purchases of available-for-sale investments and $632 for fixed asset purchases, and partially offset by proceeds of $12,535 from sales and maturities of available-for-sale investments.

Previous wording

Net cash provided by financing activities for the six months ended June 30, 2024 was $2 that was received for stock option exercises.

Current wording

Net cash provided by financing activities for the nine months ended September 30, 2024 was $2 that was received for stock option exercises.

Previous wording

Net cash provided by financing activities for the six months ended June 30, 2023 was $435 consisting of $251 received for stock option exercises, $200 in proceeds from a stockholder of the Company pursuant to the application of the Section 16 short swing profit rules and partially offset by $16 of equipment loan repayments.

Current wording

Net cash provided by financing activities for the nine months ended September 30, 2023 was $44,668 consisting of $44,222 of proceeds from the issuance of common stock net of issuance costs, $262 received for stock option exercises, $200 in proceeds from a stockholder of the Company pursuant to the application of the Section 16 short swing profit rules and partially offset by $16 of equipment loan repayments.

Previous wording

Following the Business Combination, we became an “emerging growth company,” as defined in the JOBS Act. Pursuant to the JOBS Act, an emerging growth company is provided the option to adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. We intend to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information you receive from other public companies.

Current wording

Following the Business Combination, we became an “emerging growth company,” as defined in the JOBS Act. Pursuant to the JOBS Act, an emerging growth company is provided the option to adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. We currently take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information you receive from other public companies.

Previous wording

We also intend to take advantage of some of the reduced regulatory and reporting requirements of emerging growth companies pursuant to the JOBS Act so long as we qualify as an emerging growth company, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.

Current wording

We take advantage of some of the reduced regulatory and reporting requirements of emerging growth companies pursuant to the JOBS Act, and we intend to continue to do so as long as we qualify as an emerging growth company, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.