Vicarious Surgical Inc. (NYSE:RBOT), a company specializing in orthopedic, prosthetic, and surgical appliances, announced on Monday a new consulting agreement with its former Chief Financial Officer, William Kelly. The agreement follows Mr. Kelly's previously disclosed departure from his executive position. The announcement comes as the company's stock has shown remarkable momentum, posting a 102% gain over the past six months, according to InvestingPro data.
Under the terms of the consulting agreement, effective as of January 17, 2025, Mr. Kelly will provide advisory services to the company from January 2, 2025, through December 31, 2028. During the initial six months of this period, he will be compensated at a monthly rate of $10,000. Starting July 1, 2025, he will receive an hourly rate for his services. The company maintains a strong liquidity position with a current ratio of 7.44, indicating robust short-term financial stability despite ongoing operational challenges.
In addition to his consulting fees, Mr. Kelly will retain the vesting rights to his stock options and restricted stock units granted under Vicarious Surgical's 2021 Equity Incentive Plan until June 30, 2025. However, no further vesting will occur after this date.
The consulting agreement also encompasses standard clauses regarding confidentiality and non-solicitation, ensuring that Mr. Kelly will continue to uphold his obligations to the company during and after the term of his consultancy.
Vicarious Surgical's engagement with Mr. Kelly in a consulting capacity allows the company to leverage his expertise while transitioning to a new CFO. This move is part of the broader strategic developments within the company as it continues to innovate in the medical device sector. InvestingPro analysis reveals several key insights about the company's position, including its favorable cash-to-debt ratio and rapid cash utilization. Investors seeking deeper insights into Vicarious Surgical's financial health and growth prospects can access comprehensive analysis and 12 additional ProTips through InvestingPro's detailed research reports.
This news is based on a recent SEC filing and the full details of the consulting agreement will be included in Vicarious Surgical's upcoming Annual Report on Form 10-K for the fiscal year ending December 31, 2024.
In other recent news, Vicarious Surgical has reported a narrowed net loss for the third quarter, demonstrating a significant improvement in its financial health. The company disclosed an adjusted earnings per share (EPS) of -$2.87, which fell short of the anticipated -$2.58 EPS. Despite this, the company's adjusted net loss for the quarter was reduced to $17 million from the previous year's $20.4 million, accompanied by a 17% decrease in operating expenses, which totaled $17.8 million.
Piper Sandler, following the release of these results, adjusted its outlook on shares of Vicarious Surgical, reducing the price target to $10.50 from the previous $12.00 while maintaining a neutral rating on the stock. This adjustment reflects the company's recent developments, including the integration of its V1.0 system and the selection of specific sites for an overseas clinical trial for ventral hernia.
Vicarious Surgical also confirmed its commitment to the previously stated full-year 2024 cash burn guidance of approximately $50 million. The company maintains a strong cash position with $61 million in hand, projecting a cash runway into 2026. These recent developments highlight Vicarious Surgical's journey towards commercial viability and market penetration.
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