Item 7. Management’s Discussion and Analysis
Item 7. Management’s Discussion
and Analysis of Financial Condition and Results of Operations.
Results of Operations
Introduction
The financial statements appearing elsewhere in
this prospectus have been prepared assuming the Company will continue as a going concern. The Company was recently formed and has not
established sufficient operations or revenues to sustain the Company. These conditions raise substantial doubt about the Company’s
ability to continue as a going concern.
9
The following table provides selected financial
data about our Company at December 31, 2022 and December 31, 2021:
Balance Sheet Data
As of
As of
December 31,
December 31,
2022
2021
Cash
$ 1,351,364
$ 405,774
Total Assets
$ 4,371,441
$ 428,607
Total Liabilities
$ 4,051,229
$ 287,281
Total Stockholders’ Equity
$ 320,213
$ 141,326
To date, the Company has relied on debt and equity
raised in private offerings to finance operations and no other source of capital has been identified or sought. If we experience a shortfall
in operating capital, we could be faced with having to limit our research and development and marketing activities.
Year ended December
31, 2022, as compared to year ended December 31, 2021
Revenues. We had no revenue during
the years ended December 31, 2022 and December 31, 2021.
Research and Development Expenses. Research
and development expenses during year ended December 31, 2022 were $72,959 as compared to $1,000 for the year ended December 31, 2021.
Research and development expenses reflect continuing development work on the Company’s prototype robotic system at its facilities
at UCF’s incubator in Orlando, Florida.
Compensation Expense. We had compensation
expenses of $1,135,468 and $947,237 during year ended 2022 and 2021 respectively. This includes compensation for the management staff
and stock-based compensation expense related to the Company’s 2016 Stock Incentive Plan.
General and Administrative Expenses. We
incurred $1,239,179 in general and administrative expenses during the year ended December 31, 2022, as compared to $458,801 for the year
ended December 31, 2021. General and administrative expenses include legal and other professional expenses related to the Company’s
filings as a public company with the Securities and Exchange Commission (the “ SEC ”).
Other Income (Expenses) . We have earned
$234,594 during the year ended 2022 as compared to $118 during 2021. The increase in other income is primarily result of origination fees
on notes.
Net Loss. We incurred a net loss of
$2,213,012 for 2022 as compared to a net loss of $1,484,313 for 2021. The increase in net loss from 2022 to 2021 is primarily a result
of the increase in consulting fees, payroll expenses, compensation expenses.
Liquidity and Capital Resources
The Company expects to require substantial funds
for research and development, to continue to develop its initial proposed medical robotic system. The Company plans to meet its operating
cash flow requirements by raising additional funds from the sale of our securities and, if possible, on favorable terms, by entering into
development partnerships to assist the Company with its technology development activities.
Between October 5, 2021 to December 8, 2021 the
Company sold a total of 2,229,231 shares of common stock at prices ranging between $0.13 and $0.52 per share. The
Company received proceeds of $315,200.
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During the quarter ended December 31, 2022, the Company issued and
sold 4,401,000 shares of our common stock at $0.25 per share to 21 purchasers in a private offering. The Company received proceeds of
$1,100,250.
While we have been successful in raising funds
to fund our operations since inception and we believe that we will be successful in obtaining the necessary financing to fund our operations
going forward, we do not have any committed sources of funding and there are no assurances that we will be able to secure additional funding.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern; however, if the efforts
noted above are not successful, it would raise substantial doubt about the Company’s ability to continue as a going concern. If
we cannot obtain financing, then we may be forced to further curtail our operations or consider other strategic alternatives. Even if
we are successful in raising the additional financing, there is no assurance regarding the terms of any additional investment and any
such investment or other strategic alternative would likely substantially dilute our current shareholders.
Critical Accounting Policies
Use of Estimates
The preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant
estimates included deferred revenue, costs incurred related to deferred revenue, the useful lives of property and equipment and the useful
lives of intangible assets.
Income Taxes
The Company accounts for income taxes in accordance
with ASC 740, Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes. Under this method,
deferred income taxes are determined based on the estimated future tax effects of differences between the financial statement and tax
basis of assets and liabilities given the provisions of enacted tax laws. Deferred income tax provisions and benefits are based on changes
to the assets or liabilities from year to year. In providing for deferred taxes, the Company considers tax regulations of the jurisdictions
in which the Company operates, estimates of future taxable income, and available tax planning strategies. If tax regulations, operating
results or the ability to implement tax-planning strategies vary, adjustments to the carrying value of deferred tax assets and liabilities
may be required. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria
of ASC 740.
ASC 740-10 requires that the Company recognize
the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain
the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in
the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement
with the relevant tax authority.
Off-Balance Sheet Arrangements
There are no off-balance sheet arrangements that
have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues
or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
11
Item 7A. Quantitative and Qualitative
Disclosures About Market Risk
Not applicable.
Item 8. Financial Statements and Supplementary
Data.
See the Index to the Financial Statements beginning
on page F-1 below.
Item 9. Changes in
and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.