Filing summary
Issuer and period: The supplied filing is a Form 10-Q for Avra Medical Robotics, Inc., for the quarter ended September 30, 2020—not SS Innovations International, Inc. The report is signed August 8, 2022. Verify that this is the intended filing before relying on the information below.
Business context and results
Avra describes itself as a pre-revenue medical robotics company developing an AI-assisted autonomous system, initially for aesthetic skin treatments. The financial statements are unaudited and cover the three and nine months ended September 30, 2020, compared with the corresponding 2019 periods.
- Revenue: $0 in both the quarter and nine-month periods, in both 2020 and 2019. With no revenue, a meaningful gross margin is not reported.
- Quarterly results: Operating expenses were $375,213 versus $1,390,965; net loss was $375,526 versus $1,397,457. Basic and diluted loss per share was $0.02 versus $0.06.
- Nine-month results: Operating expenses were $901,872 versus $2,317,802; net loss per the financial statements was $902,841 versus $2,331,938. Loss per share was $0.04 versus $0.11.
- Cash flow, nine months: Operating cash used was $84,619; investing cash used was $4,000; financing cash provided was $60,830. Cash declined by $27,789, from $28,474 to $685.
- Balance sheet at September 30, 2020: Total assets were $51,661; total liabilities were $1,372,660; and total stockholders’ deficit was $1,320,999. Current liabilities were $1,368,030, including $388,700 in related-party notes and $25,000 in promissory notes. Cash was $685.
Changes, outlook and risks
- Operating expenses and reported losses decreased substantially from 2019, which management primarily attributes to lower stock-based compensation. Research and development expense was $0 for the quarter and $2,000 for the nine months, compared with $4,500 and $56,374, respectively, in 2019.
- Management says the company has no established revenue source sufficient to cover operating costs and depends on debt and equity financing. It reports substantial doubt about the company’s ability to continue as a going concern; additional funding is not committed or assured, and could substantially dilute shareholders.
- No quantified financial guidance is provided. Management describes plans to develop and seek regulatory approval for its robotic system, but notes that commercialization and financing are uncertain. COVID-19’s effects on the company could not be estimated.
- Disclosure controls and procedures were reported ineffective as of September 30, 2020 because of material weaknesses previously identified in the 2019 Form 10-K. No material control changes during the quarter were reported.
- Subsequent-event disclosures describe private financings and other transactions after quarter-end. These are later events and should not be treated as cash or financing available at September 30, 2020.
Investor verification priorities
- Confirm issuer identity: the filing names Avra Medical Robotics, Inc., not SS Innovations International, Inc.
- Reconcile inconsistencies in the filing: MD&A gives a different 2019 quarterly loss than the statements and reports a nine-month 2020 loss of $527,316, while the statements show $902,841. The statements should be checked against the filed XBRL and any amendments.
- Verify reported deficit terminology: the going-concern note cites a $6,771,908 stockholders’ deficit, but the balance sheet shows $6,771,908 as accumulated deficit and total stockholders’ deficit of $1,320,999.
- Assess near-term liquidity, related-party borrowing, funding needs, and the status and terms of post-quarter-end financings.
- Review the referenced 2019 Form 10-K for details on the material weaknesses and going-concern disclosures.