A Future Equity Agreement (SAFE) gives you the right to future shares in the company. If you invest, you're betting the company will be worth more than $65M eventually.
We have financial statements ending December 31, 2022.
Our cash in hand is $100,000, as of October 2023. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $200,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of OperationsYou should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.Overview
Atom Limbs is on a mission to revolutionize prosthetics.
Backed by Moai Capital, J4 Ventures, Village Global, angels including Trevor Blackwell and Anthony Pompliano, and countless healthcare professionals, Atom Limbs’ pioneering approach to the world's first artificial human arm is on track to transform the $800B+ physical disability industry.
We're aiming to give 65M+ limb-different people their limbs back. With Atom Limbs, prosthetics aren’t just functional, they’re transformational
All future projections cannot be guaranteed.
MilestonesAtom Limbs Inc. was incorporated in the State of Delaware in April 2019.Since then, we have:
The Company is subject to risks and uncertainties common to early-stage companies. Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.Historical Results of Operations
Liquidity & Capital ResourcesTo-date, the company has been financed with $17,000 in debt, $8,441,756 in SAFEs, and $331,000 in grants.After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 3 months before we need to raise further capital.We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.Runway & Short/Mid Term ExpensesAtom Limbs Inc. cash in hand is $100,000, as of October 2023. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $200,000/month, for an average burn rate of $200,000 per month. Our intent is to be profitable in 36 months.
Since the date of our financials, we have landed a production-intent design and gathered compelling pre-clinical research data from 30+ user tests. We hired a mechanical engineer and several engineering interns to speed up prototype builds to support our increased pacing of user tests. We also acquired a 5,000 sq ft lab space in Palo Alto, CA.
We expect to need $20M in total capital to go to market in late 2024/early 2025. In year 1, we aim to generate $16.6M in revenue from 1,384 units sold. These projections cannot be guaranteed.
We are not currently profitable. We aim to be cash-flow positive around end of year 2/start of year 3 of sales. Our breakeven point is $65M in revenue. In year 2, we aim to generate $75.2M in revenue from 6,197 units sold.
In terms of other sources of capital, we have also raised venture capital from multiple VC firms, as well as government grants, from NSF and Air Force, and may pursue similar sources of capital to cover short term burn.
All projections in the above narrative are forward-looking and not guaranteed.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
We aim for our arm to be reimbursed by healthcare payers. We also anticipate direct pay. This means we have to demonstrate to insurers, both private and public, that we're better than existing solutions by demonstrating improved outcomes. We're mitigating this risk by gathering clinical data to support this during our clinical trial process; this is very typical among medical devices.
Hardware development costs are non-trivial. And regulatory clearance (FDA) sometimes requires clinical trials or validation, which add additional time and capital requirements. This is why it's important to raise as much as possible.
The cost of high-end robotics is inaccessible to most consumers. To access the broader mass market, we aim to be as affordable as entry-level prosthetics. We're able to do this given our decades of procurement & supply chain experience, as well as building some of the most successful consumer products in the world like iPhone and iMac. Entry-level prosthetics today currently sell for an average of $26,000 and high-end prosthetics sell for an average $190,000. It's important to be competitive and affordable to enter mid-market and mass-market.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
COVID-19 and recent macroeconomic activity may pose a risk to our business as it makes the general economic climate less predictable. Supply chains and customers and investor demand may be altered as a result.
We may provide certain projected results of operations to prospective investors in connection with this offering. Projections are hypothetical and based upon present factors thought by management to influence our operations. Projections do not, and cannot, take into account such factors as market fluctuations, unforeseeable events such as natural disasters, the terms and conditions of any possible financing, and other possible occurrences that are beyond our ability to control or even to predict. While management believes that the projections reflect the possible outcome of our operation and performance, results depicted in the projections cannot be guaranteed.
We believe we will need to raise additional funds in order to reach profitability. Should we be unable to raise additional funds, we may be unable to get our product to market, and unable to make a return to investors.
In May 2021 the Company issued an employee loan for $30,000 to the CEO. The loan agreement bears monthly interest at 0.13% per month, which was equivalent to the Short-term IRS AFR Rate at the time of signing. The loan will be repaid through bi-weekly payroll deductions starting May 11, 2022 until the full amount including interest is paid in full. As of October 2023 the balance of the loan is $0.
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.