Business context and reporting period
The provided filing is AVRA Medical Robotics, Inc.’s unaudited Form 10-Q for the quarter ended March 31, 2018; this does not match the request metadata identifying SS Innovations International, Inc. AVRA was developing a prototype surgical robotic system for facial procedures with the University of Central Florida (UCF). It reported no products ready for commercial sale.
Financial results and liquidity
| Metric | Q1 2018 | Q1 2017 or comparison |
|---|---|---|
| Revenue | $0 | $0 |
| Research and development expense | $12,052 | $46,516 |
| General and administrative expense | $226,378 | $140,817 |
| Net loss | $238,404 | $196,315 |
| Basic and diluted loss per share | $0.01 | $0.01 |
| Net cash used in operating activities | $120,103 | $108,069 |
At March 31, 2018, cash was $314,672, total current assets $326,501, current liabilities $245,559, total assets $410,479, and stockholders’ equity $164,920. No revenue or profit margin was reported. The balance sheet lists no promissory-note debt; $480,000 of notes had converted to common shares in 2017. Cash declined by $137,900 during the quarter, with no financing cash inflow.
Material changes versus the prior comparable period
Net loss increased by $42,089 year over year. General and administrative expense rose $85,561, attributed to management compensation, legal and other professional costs related to SEC registration, and stock-based compensation. R&D expense fell $34,464, which management attributed to completion of UCF’s first research phase. Cash decreased from $452,572 at December 31, 2017 to $314,672 at March 31, 2018. Current liabilities fell from $408,869, principally as the reported stock liability declined from $284,750 to $62,250.
Outlook, risks, contingencies, and unusual items
The company provided no quantified financial guidance. Management said it expects substantial funding needs for continued R&D and plans to seek financing through securities sales and potentially development partnerships. The company had no committed funding source and warned that financing may not be available; additional equity could substantially dilute existing shareholders. The filing states that the company has not generated sufficient revenue to cover operating costs and that these conditions raise substantial doubt about its ability to continue as a going concern. Commercial readiness and timing are uncertain, with no assurance of successful development or commercialization.
Q1 investing cash use included $14,400 of website costs and $3,397 for equipment. Noncash financing disclosures include $24,000 of common stock issued for website and services and $18,000 of accrued related-party compensation converted into stock; the related shares for the latter were issued after quarter-end. Accrued officer compensation was $141,000 at quarter-end. The UCF agreement runs through September 30, 2019, and includes a 1% royalty in any year that sales of products using the relevant intellectual property exceed $20 million. Disclosure controls were reported ineffective as of March 31, 2018 due to material weaknesses identified in the prior annual report. No legal proceedings were reported.
Important facts for investors to verify
- Confirm the issuer: the supplied filing names AVRA Medical Robotics, Inc., not SS Innovations International, Inc.
- Review the current financing position and cash runway; the filing reports $314,672 cash and ongoing operating cash outflows, but no committed funding.
- Assess the status, cost, and timeline of the UCF-supported prototype and the company’s path to commercial readiness.
- Verify remediation of the disclosed material weaknesses in disclosure controls and review the cited risk factors in the company’s registration statement.
- Check the terms and share-count effects of stock issuances, accrued compensation conversions, and any subsequent financing.