What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-08-14 compared with 2023-05-12 · 149 added, 156 removed, 13 unchanged (96% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis

should be read in conjunction with the audited Financial Statements and accompanying notes thereto included in the Company’s

Annual Report on Form 10-K as of and for the fiscal year ended December 31, 2022.

Unless otherwise noted, all the financial

information in this Report is financial information for the Company .

Novint Technologies,

(“Novint”, the “Company”, “we”, “our”, “us”) was originally incorporated

in the State of New Mexico in April 1999.

On February 26, 2002, the Company changed its state of incorporation to Delaware by merging

with Novint Technologies, Inc., a Delaware corporation.

This merger was accounted for as a reorganization.

Nature of Business

The Company currently

is engaged in the sale of 3D haptics products and equipment.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

following discussion and analysis should be read in conjunction with the audited Financial Statements and accompanying notes thereto

included in the Company’s Annual Report on Form 10-K as of and for the fiscal year ended December 31, 2022.

otherwise noted, all the financial information in this Report is financial information for the Company .

Company is engaged in the business of the sale of 3D haptics products and equipment.

Haptics refers to one’s sense of touch.

The Company’s

focus is on the consumer interactive computer gaming market, but the Company conducts project work in non-gaming areas as well.

Our principal product

is the Falcon, an extensible, grounded (e.g., desktop), three-dimensional (3D) haptic interaction device with characteristics optimized

for real-time force-feedback and tactile interaction.

Additionally, we have developed but not yet commercialized the Xio product,

a next generation, full arm, game controller with forced feedback.

Currently, we are focused on engaging in discussions with potential

partners and studying other ways to realize value from the Falcon and Xio products.

Results of Operations for the Three Months Ended March 31,

2023 and 2022

Three months ended March 31,

The Company recorded

revenue of $0 and $0 for the three-month period ended March 31, 2023 and March 31, 2022.

The Company expects to continue to incur

significant expenses and operating losses for the foreseeable future.

The Company’s net losses may fluctuate significantly

from quarter to quarter and year to year.

Operating Expenses

Three months ended March 31,

Operating Expenses

Operating expenses

increased by $1,079 or 2% to $50,379 for the three months ended March 31, 2023, from $49,300 for the three months ended March 31,

This increase was primarily due to an increase in professional fees incurred during the three months ended March 31, 2023.

Other Expense

Three months ended March 31,

Other Expense

Other expense decreased

by $14 or 100% to $0 during the three months ended March 31, 2023 compared with $14 during the three months ended March 31, 2022.

Other expense for the three months ended March 31, 2022 consisted of interest expense related to finance charges on credit cards

which was fully paid off during the period ended March 31, 2022.

Liquidity and Capital Resources

The following table summarizes select Balance

Sheet and working capital amounts as of March 31, 2023 and December 31, 2022:

Working capital deficit

At March 31, 2023,

the Company had a working capital deficit of approximately $774,235.

Accumulated deficit amounted to $41,853,759 and $41,803,380

at March 31, 2023 and December 31, 2022, respectively.

Net loss for the three months ended March 31, 2023 and 2022 was $50,379

and $49,314, respectively.

Net cash used in operating activities was $31,725 and $38,788 for the three months ended March 31, 2023

and 2022, respectively.

Operations since inception have been funded primarily with the proceeds from equity and debt offerings.

As of March 31, 2023, the Company had cash of $23,356.

The Company’s

management has evaluated whether there is substantial doubt about the Company’s ability to continue as a going concern and

has determined that substantial doubt existed as of the date of this filing.

This determination was based on the following factors:

(i) the Company’s available cash as of the date of this filing will not be sufficient to fund its anticipated level of operations

for the next 12 months;

(ii) the Company has incurred recurring losses and at March 31, 2023, had an accumulated deficit of $41,853,759;

(iii) the Company sustained an operating loss of $50,379 for the period ended March 31, 2023;

and (iv) if the Company fails to

obtain the needed capital, it will be forced to delay, scale back, or eliminate some or all of its programs or perhaps cease operations.

In the opinion of management, these factors, among others, raise substantial doubt about the ability of the Company to continue

as a going concern.

There is no assurance

that the Company will be successful in any capital-raising efforts that it may undertake to fund operations during 2023.

anticipates that it will continue to issue equity and/or debt securities as a source of liquidity, until it begins to generate

positive cash flow to support its operations.

Any future sales of securities to finance operations will dilute existing stockholders’

The Company cannot guarantee when or if it will generate positive cash flow.

The audit report prepared

by our independent registered public accounting firm relating to the Company’s consolidated financial statements for the

year ended December 31, 2022 included an explanatory paragraph expressing substantial doubt about our ability to continue as a

going concern.

Cash Flow Activities

The following table summarizes the Company’s

cash flows for the periods set forth below:

Three months ended March 31,

The Company’s focus is in the consumer interactive computer gaming market.

The Company seeks to conduct custom project work

in other related areas The Company sells its haptics products primarily to consumers through online retail marketplaces.

of Operations for the Three Months Ended June 30, 2023 and 2022

months ended June 30,

Company recorded revenue of $0 and $0 for the three-month period ended June 30, 2023 and June 30, 2022.

The Company expects to

continue to incur significant expenses and operating losses for the foreseeable future.

The Company’s net losses may fluctuate

significantly from quarter to quarter and year to year.

months ended June 30,

expenses increased by $44,407 or 120% to $81,265 for the three months ended June 30, 2023, compared with $36,858 for the three

months ended June 30, 2022.

This increase was due primarily to increased professional fees related to the Company’s pursuit

of a potential financing transaction.

months ended June 30,

Company recorded other expense of $0 and $0 for the three-month period ended June 30, 2023 and June 30, 2022.

of Operations for the Six Months Ended June 30, 2023 and 2022

months ended June 30,

Company recorded revenue of $0 and $0 for the three-month period ended June 30, 2023 and June 30, 2022.

The Company expects to

continue to incur significant expenses and operating losses for the foreseeable future.

The Company’s net losses may fluctuate

significantly from quarter to quarter and year to year.

months ended June 30,

expenses increased by $45,486 or 53% to $131,644 for the six months ended June 30, 2023, compared with $86,158 for the six months

ended June 30, 2022.

This increase was due primarily to increased professional fees related to the Company’s pursuit of

a potential financing transaction.

months ended June 30,

expense decreased by $14 or 100% to $0 during the six months ended June 30, 2023 compared with $0 during the six months ended

June 30, 2022.

Other expense for the six months ended June 30, 2022 consisted of interest expense related to finance charges on

credit cards.

and Capital Resources

following table summarizes select balance sheet and working capital amounts as of June 30, 2023 and December 31, 2022:

Working capital

Company had a stockholders’ deficit of $41,935,024 and $41,803,380 at June 30, 2023 and December 31, 2022, respectively.

Net loss for the six months ended June 30, 2023 and 2022 was $131,644 and $86,172, respectively.

Net cash used in operating activities

Net cash used in operating

activities for the three months ended March 31, 2023 was $31,725 compared with net cash used in operating activities of $38,788

for the three months ended March 31, 2022.

The decrease in net cash used in operating activities was primarily due to an increase

of $6,289 in accounts payable and accrued expenses for the three months ended March 31, 2023, compared to a decrease in accounts

payable and accrued expenses of $3,131 for the three months ended March 31, 2022.

Net cash used in operating

activities for the three months ended March 31, 2023 was $38,788, representing a net loss of $50,379 partially offset by an increase

of $12,500 in accrued royalties and by an increase of $6,289 in accounts payable and accrued expenses.

Effects of Inflation

We do not believe that inflation has had

a material impact on our business, sales, or operating results during the periods presented.

Off-Balance Sheet Arrangements

We currently do not have any off-balance

sheet arrangements or financing activities with special-purpose entities.

Critical Accounting Policies and Use of Estimates

Critical accounting

policies are those policies which are both important to the presentation of a company’s financial condition and results and

require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about

the effect of matters that are inherently uncertain.

There have been no recent significant changes to our accounting policies

and use of estimates during the three months ended March 31, 2023.

For a further discussion of our critical accounting policies,

see our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Forward-Looking Statements and Certain Factors That May Affect

Future Results of Operations

The Securities and

Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand a company’s

future prospects and make informed investment decisions.

was $47,865 and $61,018 for the six months ended June 30, 2023 and 2022, respectively.

Operations since inception have been funded

primarily with the proceeds from equity and debt offerings.

As of June 30, 2023, the Company had cash of $27,216.

Company’s management has evaluated whether there is substantial doubt about the Company’s ability to continue as a

going concern and has determined that substantial doubt existed as of the date of this filing.

This determination was based on

the following factors:

(i) the Company’s available cash as of the date of this filing will not be sufficient to fund its

anticipated level of operations for the next 12 months;

(ii) the Company has incurred recurring losses and at June 30, 2023, had

an accumulated deficit of $41,935,024;

(iii) the Company sustained an operating loss of $131,644 for the six months ended June

and (iv) if the Company fails to obtain the needed capital, it will be forced to delay, scale back, or eliminate some

or all of its programs or perhaps cease operations.

In the opinion of management, these factors, among others, raise substantial

doubt about the ability of the Company to continue as a going concern.

is no assurance that the Company will be successful in any capital-raising efforts that it may undertake to fund operations during

The Company anticipates that it will continue to issue equity and/or debt securities as a source of liquidity, until it

begins to generate positive cash flow to support its operations.

Any future sales of securities to finance operations will dilute

existing stockholders’ ownership.

The Company cannot guarantee when or if it will generate positive cash flow.

audit report prepared by the Company’s independent registered public accounting firm relating to the Company’s financial

statements for the year ended December 31, 2022 included an explanatory paragraph expressing substantial doubt about the Company’s

ability to continue as a going concern.

Flow Activities

following table summarizes the Company’s cash flows for the periods set forth below:

months ended June 30,

cash used in operating activities

Net cash provided

by investing activities

Net cash provided by financing activities

cash used in operating activities for the six months ended June 30, 2023 was $47,865 compared with net cash used in operating

activities of $61,018 for the six months ended June 30, 2022.

The increase in net cash used in operating activities during the

six months ended June 30, 2023 was due primarily to an increase in net loss of $45,472, and partially offset by an increase of

$25,390 in the change in accounts payable and accrued expenses.

cash used in operating activities for the six months ended June 30, 2023 was $47,865, representing a net loss of $131,644, partially

offset by an increase of $25,390 in accounts payable and accrued expenses, an increase in accrued royalties of $25,000 and a decrease

in prepaid expenses of $3,389.

cash from financing activities for the six months ended June 30, 2023 was $20,000 representing proceeds from a related party promissory

The remaining portion of the related party promissory note payment was $30,000 of expenses paid for by a related party,

which is an operating activity.

There were no cash flows from financing activities for the six months ended June 30, 2022.

does not believe that inflation has had a material impact on the Company’s business, sales, or operating results during

the periods presented.

Sheet Arrangements

Company currently does not have any off-balance sheet arrangements or financing activities with special-purpose entities.

Accounting Policies and Use of Estimates

accounting policies are those policies which are both important to the presentation of a company’s financial condition and

results and require management’s most difficult, subjective or complex judgments, often as a result of the need to make

estimates about the effect of matters that are inherently uncertain.

There have been no recent significant changes to our

accounting policies and use of estimates during the six months ended June 30, 2023.

For a further discussion of our critical

accounting policies, see the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with

the SEC on March 31, 2023.

Looking Statements and Certain Factors That May Affect Future Results of Operations

Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand

a company’s future prospects and make informed investment decisions.

This Quarterly Report on Form 10-Q contains such “forward-looking

4 unchanged sentences

and any statements of assumptions underlying any of the foregoing.

All forward-looking statements included in this report are made

as of the date hereof and are based on information available to us as of such date.

We assume no obligation to update any forward-looking

In some cases, forward-looking statements can be identified by the use of terminology such as “may,” “will,”

“expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,”

“potential,” or “continue,” or the negative thereof or other comparable terminology.

Although we believe

that the expectations reflected in the forward-looking statements contained herein are based upon reasonable assumptions at the

time made, there can be no assurance that any such expectations or any forward-looking statement will prove to be correct.

actual results will vary, and may vary materially, from those projected or assumed in the forward-looking statements.

Future financial

condition and results of operations, as well as any forward-looking statements, are subject to inherent risks and uncertainties,

many of which we cannot predict with accuracy and some of which we might not anticipate, including, without limitation, product

recalls and product liability claims;

infringement of our technology or assertion that our technology infringes the rights of other

All forward-looking statements included in this report are

made as of the date hereof and are based on information available to us as of such date.

We assume no obligation to update any

forward-looking statement.

In some cases, forward-looking statements can be identified by the use of terminology such as “may,”

“will,” “expects,” “plans,” “anticipates,” “intends,” “believes,”

“estimates,” “potential,” or “continue,” or the negative thereof or other comparable terminology.

Although we believe that the expectations reflected in the forward-looking statements contained herein are based upon reasonable

assumptions at the time made, there can be no assurance that any such expectations or any forward-looking statement will prove

to be correct.

Our actual results will vary, and may vary materially, from those projected or assumed in the forward-looking statements.

Future financial condition and results of operations, as well as any forward-looking statements, are subject to inherent risks

and uncertainties, many of which we cannot predict with accuracy and some of which we might not anticipate, including, without

limitation, product recalls and product liability claims;

infringement of our technology or assertion that our technology infringes

the rights of other parties;

termination of supplier relationships, or failure of suppliers to perform;

inability to successfully manage growth;

in obtaining regulatory approvals or the failure to maintain such approvals;

concentration of our revenue among a few customers,

products or procedures;

inability to successfully

manage growth;

delays in obtaining regulatory approvals or the failure to maintain such approvals;

concentration of our revenue

among a few customers, products or procedures;

development of new products and technology that could render our products obsolete;

market acceptance of

new products;

market acceptance of new products;

introduction of products in a timely fashion;

price and product competition, availability of labor and materials,

cost increases, and fluctuations in and obsolescence of inventory;

volatility of the market price of our common stock;

currency fluctuations;

price and product competition, availability of

labor and materials, cost increases, and fluctuations in and obsolescence of inventory;

volatility of the market price of our

common stock;

foreign currency fluctuations;

changes in key personnel;

work stoppage or transportation risks;

integration of business acquisitions;

other factors referred to in our reports filed with the SEC, including our Registration Statement on Form 10.

All subsequent forward-looking

statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements.

Additional factors that may have a direct bearing on our operating results are discussed in Item 1A “Risk Factors”

in our Registration Statement on Form 10.

In light of these assumptions, risks and uncertainties, the results and events discussed

in the forward-looking statements contained in this Quarterly Report or in any document incorporated by reference might not occur.

Stockholders are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this

Quarterly Report.

We are not under any obligation, and we expressly disclaim any obligation to update or alter any forward-looking

statements, whether as a result of new information, future events or otherwise.

All subsequent forward-looking statements attributable

to us or to any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or

referred to in this section.

integration of business

acquisitions;

and other factors referred to in our reports filed with the SEC, including our Registration Statement on Form 10.

All subsequent forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their

entirety by these cautionary statements.

Additional factors that may have a direct bearing on our operating results are discussed

in Item 1A “Risk Factors” in our Registration Statement on Form 10.

In light of these assumptions, risks and uncertainties,

the results and events discussed in the forward-looking statements contained in this Quarterly Report or in any document incorporated

by reference might not occur.

Stockholders are cautioned not to place undue reliance on the forward-looking statements, which

speak only as of the date of this Quarterly Report.

We are not under any obligation, and we expressly disclaim any obligation,

to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

All subsequent

forward-looking statements attributable to us or to any person acting on our behalf are expressly qualified in their entirety

by the cautionary statements contained or referred to in this section.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis