What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-10-28 compared with 2025-08-06 · 167 added, 157 removed, 198 unchanged (62% of the section changed)

20 unchanged sentences

of production which eventually helps us make our surgical robotic system cost effective and relatively affordable.

During the three months and six months period ended June 30, 2025,

During the three and nine months ended September

30, 2025, we sold 28 and 55 surgical robotic systems, respectively.

In addition, during the three month period ended June 30, 2025, we installed 5

systems on a pay-per-use basis and 1 system on a demonstration basis.

In addition, during the three month period ended September 30, 2025,

we installed one system on a pay-per-use basis and one system on a demonstration basis.

Results of Operations

6 unchanged sentences

ability to continue as a going concern.

Balance Sheet Data

The following table provides selected balance

sheet data for the Company as of:

Balance Sheet Data

September 30,

Restricted cash**

1 unchanged sentence

Total liabilities and stockholders’ equity

** Represents Fixed Deposits held

by bank as security for bank facilities and certain performance guarantees.

To date, the Company has mainly relied on debt

and equity raised in private offerings to finance its operations.

During 2025, the Company plans to raise additional capital through

further private or public offerings.

However, if we are unable to do so and if we experience a shortfall in operating capital, we could

be faced with having to limit our expansion plans, research and development and marketing activities.

For the three months

June 30, 2025

June 30, 2024

Represents Fixed Deposits held by bank as security for bank facilities and certain performance guarantees.

To date, the Company has mainly relied on debt and equity raised in

private offerings to finance its operations.

During the balance of 2025, the Company plans to raise additional capital through further

private or public offering of its securities.

However, if we are unable to do so and if we experience a shortfall in operating capital,

we could be faced with having to limit our expansion plans, research and development and marketing activities.

Three months ended September 30, 2025, as

compared to the three months ended September 30, 2024

For the three months ended

September 30,

Total Revenue

4 unchanged sentences

Selling, general and administrative expense

Income /(Loss) from operations

Loss from operations

Other income (expenses)

Income tax expense

Three months ended June 30, 2025, as compared to the three months

ended June 30, 2024

Total Revenue.

For the three months ended June 30, 2025,we had revenues of $10,000,305

(comprised $8,781,038 of system sales, $1,007,830 of instrument sales, $193,359 of warranty sales and lease income $18,078), as compared

to $4,509,126 (comprising $4,258,198 of system sales and $204,121 of instrument sales $28,795 of warranty sales and lease income $18,012)

for the three months ended June 30, 2024.

The increase in revenue is primarily due to an increase in the number of SSI Mantra 3 surgical

robotic systems and instruments during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024.

For the three months ended September 30, 2025,we had revenues of $12,829,349 (comprised of $11,705,375 of system sales,

$854,440 of instrument sales, $244,399 of warranty sales and lease income $25,135), as compared to $4,386,516 (comprised of $3,969,805

of system sales, $337,580 of instrument sales $58,547 of warranty sales and lease income $20,584) for the three months ended September

The increase in revenue is primarily due to an increase in the number of SSi Mantra 3 surgical robotic systems and instruments

during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024.

Gross profit.

For the three months ended

June 30, 2025, we had gross profit of $5,915,058, as compared to $1,437,786 for the three months ended June 30, 2024.

The increase in

gross profit margin was on account of decreases in raw material prices and improvements in manufacturing processes which resulted in less

consumption of raw material from the 2024 quarter to the 2025 quarter.

September 30, 2025, we had gross profit of $6,164,936, as compared to $2,317,407 for the three months ended September 30, 2024.

in gross profit margin was on account of decreases in raw material prices and improvements in manufacturing processes which resulted in

less consumption of raw material from the 2024 quarter to the 2025 quarter.

Research and development expense.

Research and development expenses were $498,600 for the three months

ended June 30, 2025, as compared to $759,004 for the three months ended June 30, 2024.

Research and development expense primarily consists

of salaries paid to engineers, amounting to $411,505 and $431,920 for the three months ended June 30, 2025 and 2024, respectively.

decrease in research and development expenses compared to the prior period is primarily due to the nature of activities undertaken.

the previous quarter, we incurred higher research and development costs while working on the development of Mantra 3.0, whereas in the

current quarter, our research and development efforts were focused on routine product enhancements, which involved relatively lower expenditure.

Stock compensation expense.

We had stock compensation expenses of $1,630,295 and $2,443,792 during

three months ended June 30, 2025 and 2024, respectively.

The substantial decrease in the stock compensation expense is primarily due to

reversal of expenses relating to resigned employees during three months ending June 30, 2025.

and development expenses were $786,319 for the three months ended September 30, 2025, as compared to $442,839 for the three months ended

September 30, 2024.

Research and development expense primarily consists of salaries paid to engineers, amounting to $691,273 and $333,625

for the three months ended September 30, 2025 and 2024, respectively.

The increase in research and development expenses compared to the

prior period is primarily due to the nature of activities undertaken.

Our research and development efforts were focused on routine product

enhancements, which involved relatively lower expenditure.

compensation expense.

We had stock compensation expenses of $2,095,163 and $2,451,355 during the three months ended September 30,

2025 and 2024, respectively.

The substantial decrease in the stock compensation expense is primarily due to reversal of expenses relating

to resigned employees during the three months ending September 30, 2025.

Depreciation and amortization expense.

had depreciation and amortization expense of $260,361 for three months ended June 30, 2025, as compared to $90,476 for three months ended

June 30, 2024.

had depreciation and amortization expense of $297,173 for three months ended September 30, 2025, as compared to $119,502 for three months

ended September 30, 2024.

The depreciation and amortization expenses primarily consist of depreciation on fixed assets.

Selling, general and administrative expense.

incurred $3,428,788 in selling, general and administrative (“ SG&A ”) expense during the three months ended June

30, 2025, as compared to $2,244,703 for the three months ended June 30, 2024.

incurred $4,821,552 in selling, general and administrative (“ SG&A ”) expense during the three months ended September

30, 2025, as compared to $2,508,479 for the three months ended September 30, 2024.

Our SG&A expense is comprised of expenses

6 unchanged sentences

automation and robotics, related to grants of our equity awards to members of our board of directors.

The increase in SG&A expenses

compared to the previous period is primarily due to higher legal and underwriting fees, increased expenses associated with the Company’s

uplisting to NASDAQ, and expenses incurred for business events held during the current period, which were not present in the previous

The increase in SG&A expense

compared to the previous period is primarily due to higher legal and underwriting fees and expenses incurred for business events held

during the current period, which were not present in the previous period.

Other income/expenses, net .

other income of $24 for the three months ended June 30, 2025, as compared to $40,381 of other expenses during the three months ended

June 30, 2024.

The decrease in interest expenses of $25,777 is due to the decrease in interest expenses related to notes payable by

$81,983, offset by an increase of $56,206 in interest expenses on overdraft facilities.

Additionally, interest and other income,

net, increased by $14,628 due to the reversal of certain provisions and higher interest income earned on fixed deposits.

other expenses of $35,634 for the three months ended September 30, 2025, as compared to $40,715 of other expenses during the three months

ended September 30, 2024.

The decrease in interest income by $65,899 relates to fixed deposits which is offset by increase in interest

expense by $70,980 related to interest on bank overdraft facility and convertible notes.

Income tax expense.

For the three months

ended June 30, 2025 our income tax expense increased by $353,729 as compared to nil during the three months period ended June 30, 2024,

ended September 30, 2025 our income tax expense increased by $1,847,059 as compared to nil during the three months period ended September

30, 2024, primarily due to the recognition of income tax expense in our Indian operations for the first time.

Historically, our Indian subsidiary

had incurred tax losses and was not subject to current income tax.

However, during the current period, the Indian operations generated

sufficient taxable profits, resulting in the utilization of previously unrecognized deferred tax assets and recognition of current tax

We incurred net loss of $256,691

for the three months ended June 30, 2025, as compared to a net loss of $4,140,570 for the three months ended June 30, 2024.

in net loss from June 30, 2024 to June 30, 2025 is primarily the result of increases in gross profit by $4,477,272 and reduction in stock

compensation expense by $813,497 offset by increases in SG&A by $1,184,085 and income tax expense of $353,729.

For the six months ended

Historically, our Indian

subsidiary had incurred tax losses and was not subject to current income tax.

However, during the current period, the Indian operations

generated sufficient taxable profits, resulting in the recognition of current tax expense.

We incurred net loss of $3,717,964 for the three months ended September 30, 2025, as compared to a net loss of $3,245,483 for

the three months ended September 30, 2024.

The decrease in net loss from September 30, 2024 to September 30, 2025 is primarily the result

of increases in gross profit by $3,847,529 and reduction in stock compensation expense by $356,192 offset by increases in SG&A expense

by $2,313,073 and income tax expense of $1,847,059.

Nine months ended September 30, 2025, as

compared to the nine months ended September 30, 2024

For the nine months ended

September 30,

Total Revenue

Cost of revenue

(14,783,062 )

Research & development expense

7 unchanged sentences

(17,227,806 )

Six months ended June 30, 2025, as compared to the Six

months ended June 30, 2024

Total Revenue.

We had revenues of $27,950,265

(comprising $13,283,520 of system sales, $1,485,038 of instrument sales, $315,863 of warranty sales and lease income $36,494), for the

six months ended June 30, 2025, compared to $8,146,819 (comprising $7,752,957 of system sales and $322,636 of instrument sales, $38,202

of warranty sales and lease income of $33,024) for the six months ended June 30, 2024.

The increase in revenue is primarily due to sale

of increased number of surgical robotic systems and instruments in the June 2025 period, as compared to the June 2024 period.

(comprised of $24,988,895 of system sales, $2,339,478 of instrument sales, $560,262 of warranty sales and lease income of $61,629), for

the Nine months ended September 30, 2025, compared to $12,533,335 (comprising $11,722,762 of system sales and $660,216 of instrument sales,

$96,749 of warranty sales and lease income of $53,608) for the nine months ended September 30, 2024.

The increase in revenue is primarily

due to sale of increased number of surgical robotic systems and instruments in the September 2025 period, as compared to the September

Gross profit.

We had gross profit of $13,167,202

for the six months ended June 30, 2025, as compared to $2,165,968 for the six months ended June 30, 2024.

The increase in gross profit

margin was on account of decreases in raw material prices and improvements in manufacturing processes which resulted in less consumption

of raw material from the 2024 quarter to the 2025 quarter.

for the nine months ended September 30, 2025, as compared to $4,483,375 for the nine months ended September 30, 2024.

The increase in

gross profit margin was on account of decreases in raw material prices and improvements in manufacturing processes which resulted in less

consumption of raw material from the 2024 quarter to the 2025 quarter.

Research and development expense.

and development expenses were $1,508,695 during the six months ended June 30, 2025 as compared to $1,286,995 for the six months ended

June 30, 2024.

Research and development expense primarily consists of salaries paid to engineers, amounting to $720,652 and $618,471 for

the six months period ended June 30, 2025 and June 30, 2024, respectively.

The increase in research and development expenses as compared

to the prior period is in line with the Company’s continued focus on improving the design and technological capabilities of its

existing SSi Mantra system and further expanding its product offerings till the previous quarter.

and development expenses were $2,295,014 during the nine months ended September 30, 2025 as compared to $1,729,834 for the nine months

ended September 30, 2024.

Research and development expense primarily consists of salaries paid to engineers, of $1,102,778 and $954,621

for the nine months ended September 30, 2025 and September 30, 2024, respectively.

The increase in research and development expenses as

compared to the prior period is in line with the Company’s continued focus on improving the design and technological capabilities

of its existing SSi Mantra system and further expanding its product offerings till the previous quarter.

Stock compensation expense.

compensation expense of $4,009,507 and $9,552,542 during six months ended June 30, 2025 and June 30, 2024, respectively.

The substantial

decrease in the stock compensation expense is primarily due to reversal of expenses relating to resigned employees during the current

compensation expense of $6,104,670 and $12,003,897 during nine months ended September 30, 2025 and September 30, 2024, respectively.

substantial decrease in the stock compensation expense is primarily due to reversal of expenses relating to resigned employees during

the current period.

Depreciation and amortization expense.

had depreciation and amortization expense of $469,243 for the period ended June 30, 2025, as compared to $170,577 for the period ended

June 30, 2024.

had depreciation and amortization expense of $766,416 for the nine months ended September 30, 2025, as compared to $290,079 for the nine

months ended September 30, 2024.

The depreciation and amortization expenses primarily consist of depreciation on fixed assets only.

Selling, general and administrative expense.

We incurred $6,638,587 in general and administrative expenses during the six months ended June 30, 2025, as compared to $5,088,362

in June 30, 2024, respectively.

We incurred $11,460,139 in SG&A expenses during the nine months ended September 30, 2025, as compared to $7,596,841 for the nine

months ended in September 30, 2024.

Our SG&A expense is comprised of expense relating

9 unchanged sentences

Other income/expenses .

We earned other income of $39,451 for the six months ended June 30,

2025, as compared to $49,815 of other expenses during the six months ended June 30, 2024.

The increase in interest income by $253,306

relating to fixed deposits which is offset by increase in interest expense by $164,040 related to interest on bank overdraft facility

and convertible notes.

We earned other

income of $3,817 for the nine months ended September 30, 2025, as compared to $90,530 of other expenses during the nine months ended September

The increase in interest income by $187,407 relating to fixed deposits which is offset by increase in interest expense by $93,060

related to interest on bank overdraft facility and convertible notes.

Income tax expense .

For the six months

ended June 30, 2025 our income tax expense increased by $353,729 as compared to nil during the six months period ended June 30, 2024,

For the nine months

ended September 30, 2025 our income tax expense increased by $2,200,788 as compared to nil during the nine months ended September 30,

2024, primarily due to the recognition of income tax expense in our Indian operations for the first time.

2 unchanged sentences

However, during the current period, the Indian operations generated

sufficient taxable profits, resulting in the utilization of previously unrecognized deferred tax assets and recognition of current tax

We incurred a net loss of $5,938,044 for the six months ended June 30,

2025, as compared to a net loss of $13,982,323 for the six months ended June 30, 2024.

The decrease in net loss from June 30, 2024 to

June 30, 2025 is primarily the result of the increase in gross profit by $4,836,298, decrease in stock compensation expense by $5,543,035

offset by increase in selling, general and administrative expenses of $1,550,225 and income tax expense of $353,729.

sufficient taxable profits, resulting in the recognition of current tax expense.

We incurred a net loss of $9,656,008

for the nine months ended September 30, 2025, as compared to a net loss of $17,227,806 for the nine months ended September 30, 2024.

decrease in net loss from the nine months ended September 30, 2024, to the nine months ended September 30, 2025 is primarily the result

of the increase in gross profit by $8,683,827, decrease in stock compensation expense by $5,899,227 offset by increase in SG&A expense

of $3,863,298 and income tax expense of $2,200,788.

Liquidity and Capital Resources

2 unchanged sentences

to finance its research and development work in the field of surgical robotics.

Effective February 14, 2024, the Company sold

$2,450,000 in principal amount of 7% Convertible One-Year Promissory Notes (the “ Bridge Notes ”) to five investors in

a private transaction, one of whom was Sushruta Pvt Ltd.

(“ Sushruta ” ), Sushruta, the Bahamian holding company

Sudhir Srivastava, our founder, Chairman, Chief Executive Officer and controlling shareholder, who subscribed for a $1,000,000

Interest on the Bridge Notes accrued at the rate of 7% per annum and was payable together with the principal amount upon

maturity, which was one year from issuance.

The Bridge Notes were convertible at the option of the noteholders, at any time prior to maturity

into shares of our common stock at a conversion price of $4.45 per share.

Sushruta’s Bridge Note, together with accrued interest

thereon, was repaid upon maturity in February 2025.

Effective February 14, 2024, the Company sold $2,450,000 in principal amount

of 7% Convertible One-Year Promissory Notes (the “ Bridge Notes ”) to five investors in a private transaction, one of

whom was Sushruta Pvt Ltd.

(“ Sushruta ”), Sushruta, the Bahamian holding company of Dr.

Sudhir Srivastava, our founder,

Chairman, Chief Executive Officer and controlling stockholder, who subscribed for a $1,000,000 Bridge Note.

Interest on the Bridge Notes

accrued at the rate of 7% per annum and was payable together with the principal amount upon maturity, which was one year from issuance.

The Bridge Notes were convertible at the option of the noteholders, at any time prior to maturity into shares of our common stock at a

conversion price of $4.45 per share.

Sushruta’s Bridge Note, together with accrued interest thereon, was repaid upon maturity in

February 2025.

In April 2024, the Company raised $2,000,000 from

19 unchanged sentences

stock dividends and similar recapitalization events.

As of March 31, 2025, all $30,000,000 in principal amount of One-Year Notes, together

with $164,548 in interest thereon, were converted by Sushruta into 21,858,368 shares of our common stock.

As of September 30, 2025, all $30,000,000 in principal amount of One-Year Notes,

together with $164,548 in interest thereon, were converted by Sushruta into 21,858,368 shares of our common stock.

While we have been successful in raising funds

6 unchanged sentences

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.

other strategic alternative would likely substantially dilute our current stockholders.

These factors raise a substantial doubt about

the Company’s ability to continue as a going concern.

For the six months ended

For the nine months ended

September 30,

Net cash provided by operating activities:

2 unchanged sentences

Change in operating assets and liabilities

(14,798,851 )

Net cash used in operating activities

(17,023,417 )

Net cash used in investing activities

3 unchanged sentences

Cash at beginning of year

Cash at period end

Cash at end of year

Cash Flows from Operating Activities

During the six months ended June 30, 2025, net

cash used in operating activities was $9,555,703 resulting from our net loss of $5,938,044 partially offset by non-cash charges of $4,149,120

primarily driven by depreciation charges, operating lease expense and stock compensation expense.

We had cash used in our operating assets

and liabilities of $7,766,779 primarily driven by increase in inventory, prepaid and other assets and accounts receivables offset by increase

in deferred revenue, accounts payable, accrued expenses and other liabilities.

During the six months ended June 30, 2024, net cash used in operating

activities was $3,694,486 resulting from our net loss of $13,982,323 partially offset by non-cash charges of $10,661,083 primarily driven

by credit loss reserve, depreciation charges and stock compensation expense.

We had cash used in our operating assets and liabilities

of $373,246 primarily driven by increases in inventory, accounts payable and prepaid expenses.

During the nine months ended September 30,

2025, net cash used in operating activities was $17,023,417 resulting from our net loss of $9,656,008 partially offset by non-cash

charges of $7,431,442 primarily driven by depreciation charges, operating lease expense, Interest expense (net), Interest and other

income, net, credit loss reserve, advisory share expense and other stock compensation expense.

We had cash used in our operating

assets and liabilities of $17,023,417 primarily driven by an increase in inventory, prepaid and other assets and accounts

receivables offset by an increase in deferred revenue, accounts payable, accrued expenses, prepaids and other noncurrent assets,

operating lease expense and other liabilities.

During the nine months ended September 30, 2024,

net cash used in operating activities was $6,241,269 resulting from our net loss of $17,227,806 partially offset by non-cash charges of

$13,528,234 primarily driven by credit loss reserve, depreciation charges, operating lease expense, interest expense (net) and stock compensation

We had cash used in our operating assets and liabilities of $2,541,697 primarily driven by inventory, accounts payable, Receivables

from / payables to related parties, deferred revenue, accrued expenses and other current liabilities, other noncurrent liabilities and

prepaid expenses.

Cash Flows from Investing Activities

During the six months ended June 30, 2025, we

had net cash used in investing activities of $1,189,452 in purchase of property and equipment.

During the six months ended June 30, 2024, we

had net cash used in investing activities of $2,239,139 in purchase of property and equipment.

During the nine months ended September 30, 2025,

we had net cash used in investing activities of $1,944,527 in purchase of property and equipment.

During the nine months ended September 30, 2024,

we had net cash used in investing activities of $536,337 in purchase of property and equipment.

Cash Flows from Financing Activities

During the six months ended June 30, 2025, we had net cash provided

by financing activities of $21,703,921, which comprised of proceeds of $28,000,000 from issuance of convertible notes to our principal

shareholder offset by repayment of convertible notes to our principal shareholder and other investors amounting to $4,212,637 and $1,068,849

respectively and repayment of bank overdraft by $1,014,593.

During the six months ended June 30, 2024,

we had net cash, provided by financing activities of $5,292,610, which comprised of $842,610 in proceeds from our bank overdraft

facility (net), $4,450,000 in proceeds from issuance of convertible notes to our principal shareholder and other investors as set

During the nine months ended September 30, 2025,

we had net cash provided by financing activities of $24,793,391, which comprised of proceeds of $28,000,000 from issuance of convertible

notes to our principal stockholder and proceeds from our bank overdraft facility (net) by $2,074,877 offset by repayment of convertible

notes to our principal stockholder and other investors amounting to $4,212,637 and $1,068,849, respectively.

During the nine months ended September 30, 2024,

we had net cash, provided by financing activities of $6,014,946, which comprised of $1,064,946 in proceeds from our bank overdraft facility

(net), $1,000,000 in proceeds from issuance of convertible notes to Sushruta, $ 1,450,000 proceeds from issuance of convertible notes

to other investors and $2,500,000 in proceeds from issuance of promissory notes to Sushruta.

While we have been successful in raising funds

4 unchanged sentences

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.

and any such investment or other strategic alternative would likely substantially dilute our current stockholders.

Critical Accounting Policies

Use of Estimates

The discussion and analysis of our financial

condition and results of operations is based upon the unaudited interim condensed consolidated financial statements included in this

Report on Form 10-Q, which have been prepared in accordance with U.S.

The discussion and analysis of our financial condition

and results of operations is based upon the unaudited interim condensed consolidated financial statements included in this Report on Form

10-Q, which have been prepared in accordance with U.S.

generally accepted accounting principles (“U.S.

A summary of our significant accounting policies is included in Note 2 - Summary of Significant Accounting Policies to

our unaudited interim condensed consolidated financial statements under Part I, Item 1, “Financial Statements.”

our significant accounting policies is included in Note 2 - Summary of Significant Accounting Policies to our unaudited interim condensed

consolidated financial statements under “Part I.

Financial Statements.”

We consider the policies discussed below to be

13 unchanged sentences

before they are exercised and the expected volatility of our stock.

As of June 30, 2025, the Company has issued two

types of equity incentives:

As of September 30, 2025, the Company has issued

two types of equity incentives:

Stock Options:

These provide employees with

the right, but not the obligation, to purchase shares of the Company’s stock at a specified price, within a defined period, as

per the terms of the stock option agreement.

Stock-based compensation expense associated with the AVRA 2016 Stock Incentive Plan is

measured at fair value using a Black-Scholes option-pricing model at commencement of each offering period and recognized over that

offering period.

These provide employees with the

right, but not the obligation, to purchase shares of the Company’s stock at a specified price within a defined period, as per the

terms of the stock option agreement.

Stock-based compensation expense associated with the Company’s 2016 Stock Incentive Plan is

measured at fair value using a Black-Scholes option-pricing model at commencement of each offering period and recognized over that offering

Stock Units (Restricted Stock Units, or RSUs):

These do not require the employee to exercise any options.

Each stock unit automatically converts into a specified number of shares upon

The Company uses last three months’ average share price of common stock on OTC exchange as grant date fair value for RSUs.

These do not require

the employee to exercise any options.

Each stock unit automatically converts into a specified number of shares upon vesting.

uses last three months’ average share price of common stock on OTC (prior to April 24, 2025) or on NASDAQ (subsequent to April 24,

2025) as grant date fair value for RSUs.

Standalone Selling Price

26 unchanged sentences

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