Business context and reporting period
Entity mismatch: The supplied filing is for Avra Medical Robotics, Inc., not SS Innovations International, Inc. It is a Form 10-Q for the quarter ended June 30, 2020, signed July 18, 2022. Investors should verify the filing and issuer before relying on it.
Avra describes itself as a pre-revenue medical robotics developer, initially targeting autonomous robotic skin-resurfacing procedures using AI-driven software. The interim financial statements are unaudited.
Financial performance and condition
| Metric | Three months ended June 30 | Six months ended June 30 |
|---|---|---|
| Revenue | $0 in 2020 and 2019 | $0 in 2020 and 2019 |
| Operating expenses | $219,988 in 2020; $532,508 in 2019 | $526,659 in 2020; $926,837 in 2019 |
| Net loss | $220,301 in 2020; $539,000 in 2019 | $527,316 in 2020; $934,481 in 2019 |
| Loss per share, basic and diluted | $0.01 in 2020; $0.03 in 2019 | $0.02 in 2020; $0.04 in 2019 |
| Net cash used in operating activities | Not separately presented | $71,188 in 2020; $145,120 in 2019 |
At June 30, 2020, cash was $5,416, total assets $65,750, total liabilities $1,270,892, and stockholders’ deficit $1,205,142. Current liabilities were $1,266,262, including $380,000 of related-party notes and $25,000 of promissory notes. The company reported $4,630 of long-term SBA debt. No meaningful revenue margin is available because the company had no revenue.
Changes versus prior comparable periods
Quarterly and six-month net losses narrowed year over year, mainly due to lower general and administrative expenses and stock-based compensation. R&D expense fell to $0 for the quarter and $2,000 for the six months, from $27,812 and $51,874, respectively. Cash declined from $28,474 at December 31, 2019 to $5,416 at June 30, 2020. Total liabilities increased from $1,195,782 to $1,270,892.
Outlook, risks and notable items
- Going concern: Management disclosed substantial doubt about the company’s ability to continue as a going concern. It had no established revenue base, depended on debt and equity financing, and had no committed funding source. Additional financing was not assured and could materially dilute existing shareholders.
- Development and regulatory risk: The company expected to need substantial funding for R&D, product development, regulatory approval, manufacturing and marketing. Its statements about an expedited regulatory path and commercialization are expectations, not assured outcomes.
- COVID-19: Management said the pandemic’s effects on operations, liquidity and results could not be estimated.
- Financing and dilution: During the first half of 2020, the company received $112,500 from related parties, recorded $4,630 of SBA proceeds, and converted $120,000 of debt to common stock. Stock-based compensation was a significant non-cash expense.
- Controls: Management concluded disclosure controls were not effective at the reasonable-assurance level due to previously identified material weaknesses; it reported no material control changes during the period.
- Subsequent events and timing: The filing includes financing and other events occurring after June 2020, extending into 2021. The report was signed in July 2022, so investors should assess the filing’s timeliness and the relevance of the intervening developments.
Important facts to verify
- Confirm that this Avra Medical Robotics filing is the intended document; it does not identify SS Innovations International as the registrant.
- Verify the filing date, reporting-period status, and any later amendments or more current financial statements.
- Check available liquidity, debt maturities, related-party financing terms, and whether subsequent fundraising was completed.
- Assess progress toward a working prototype, regulatory clearance, commercialization, and revenue generation.
- Review the disclosed material weaknesses and whether they were subsequently remediated.