What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-13 compared with 2025-10-28 · 135 added, 279 removed, 86 unchanged (83% of the section changed)

Management’s Discussion and Analysis

of Financial Condition and Results of Operations.

Discussion and Analysis of Financial Condition and Results of Operations.

The Company is engaged in the business of developing,

3 unchanged sentences

Having commenced commercial sales of our surgical robotic system in the second half

of 2022, the year 2023 was our first full year of commercial sales and during the year 2024, we further consolidated our installed base

of SSi Mantra in various parts of India and also expanded our presence in the global markets.

of 2022, the year 2023 was our first full year of commercial sales and during the year 2024, we introduced our upgraded SSi Mantra 3

system, further consolidated our installed base of SSi Mantra in various parts of India and began to expand our presence in other global

Those efforts continued during 2025 with filing for U.S.

FDA approval and EU CE mark approval during the year ended December

31, 2025, and are ongoing in 2026.

We are also undertaking development efforts to expand our product line in connection with our goal

to make robotic surgery more affordable and accessible.

Our financial performance is largely driven by

2 unchanged sentences

Our financial performance is also dependent on our obtaining regulatory approvals in

various regulated markets where we have plans to sell our products.

Robotically assisted surgeries are increasingly being recognized as

an approved treatment modality from an insurance coverage perspective.

various regulated markets where we plan to sell our products.

Robotically assisted surgeries are increasingly being recognized as an

approved treatment modality from an insurance coverage perspective.

Our manufacturing operations being based in India

3 unchanged sentences

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

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 September 30, 2025,

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

During the three months ended March 31, 2026,

we sold 18 SSi Mantra surgical robotic systems and installed 3 systems on a pay-per-use basis and upgraded 2 systems.

Results of Operations

The financial statements appearing elsewhere in

this report have been prepared assuming that the Company will continue as a going concern.

The Company is still in its initial years of

revenue generation by way of the sale of its product and has not yet established consistent operational revenue cash flows to meet all

its fixed operating costs and hence may continue to incur losses for some time.

These conditions raise substantial doubt about the Company’s

ability to continue as a going concern.

Balance Sheet Data

The financial statements appearing elsewhere

in this report have been prepared assuming that the Company will continue as a going concern.

The Company is still in its initial years

of revenue generation by way of the sale of its product and has not yet established consistent operational revenue cash flows to meet

all its fixed operating costs and hence may continue to incur losses for some time.

These conditions raise substantial doubt about the

Company’s ability to continue as a going concern.

The following table provides selected balance

sheet data for the Company as of:

September 30,

Balance Sheet Data

Restricted cash**

Total Liabilities

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 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 stockholders’ equity

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 the year ending December 31, 2026, the Company

plans to raise additional capital through further private or public offerings 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

efforts and marketing activities.

Three months ended March 31, 2026, as compared to the three

months ended March 31, 2025

For the period ended

Total Revenue

5 unchanged sentences

Loss from operations

Other income (expenses)

Other income, net

Income tax expense

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.

Total Revenue.

For the three months ended

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.

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.

March 31, 2026,we had revenues of $11,101,366 (comprised of $9,575,370 of system sales, $1,151,228 of instrument sales, $357,686 of warranty

sales and lease income $17,082), compared to revenues of $5,120,610 (comprising $4,502,482 of system sales, $477,208 of instrument

sales, $122,504 of warranty sales and lease income $18,416), during the three months ended March 31, 2025.

The increase in revenue is

primarily due to an increase in the number of SSi Mantra 3 surgical robotic systems and instruments sold during the three months ended

March 31, 2026, as compared to the three months ended March 31, 2025.

Research and Development Expenses.

and development expenses for the three months ended March 31, 2026, were $995,440, as compared to $1,010,095 for the three months ended

March 31, 2025.

The decrease primarily attributable to cost optimization initiatives and the timing of project-related expenditures,

partially offset by continued investments in product development and technology enhancements.

Stock compensation expense.

compensation expenses of $3,144,315 and $2,379,212 during the three months ended March 31, 2026 and 2025, respectively.

in stock compensation expense was primarily attributable to the issuance of new Restricted Share Awards, as well the vesting

of advisory shares during the current period, under the Company’s 2016 Stock Incentive Plan.

Depreciation and amortization expense.

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.

had depreciation and amortization expense of $323,747 for three months ended March 31, 2026, as compared to $208,882 for three months

ended March 31, 2025.

The increase in depreciation and amortization expense was primarily attributable to an increase in fixed assets

during the current period.

Selling, general and administrative expense .

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.

We incurred $4,502,476 in selling, general and administrative (“ SG&A ”) expense during the three months ended March

31, 2026, as compared to $3,410,872 for the three months ended March 31, 2025.

Our SG&A expense is comprised of expenses

relating to salaries and benefits, retirement benefits as well as costs related to recruitment, other compensation expenses of sales and

marketing and client management personnel, sales commission, travel and brand building, client events and conferences, training and retention

of senior management and other support personnel in enabling functions, telecommunications, utilities, travel and other miscellaneous

relating to salaries and benefits, retirement benefits as well as costs related to recruitment, other compensation expenses of sales

and marketing and client management personnel, sales commission, travel and brand building, client events and conferences, training and

retention of senior management and other support personnel in enabling functions, telecommunications, utilities, travel and other miscellaneous

administrative costs.

SG&A expense also includes acquisition-related costs, legal and professional fees (which represent the costs

of third party legal, tax, accounting, immigration and other advisors), investment in product development, digital technology, advanced

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

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.

SG&A expenses also include legal and professional fees (which represent the costs of third party legal, tax,

accounting, immigration and other advisors), investment in product development, digital technology, advanced automation and robotics,

related to grants of our equity awards to members of our board of directors.

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 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.

We have recognized

$207,538 in interest income (net) for the three months ended March 31, 2026, as compared to $240,500 during the three months ended March

The decrease in net income was primarily attributable to the decrease in interest expense on convertible notes during the three

months ended March 31, 2026, which was incurred in the prior year period offset by reversal of provision for doubtful debts during the

three months period ended March 31, 2025.

Income tax expense .

For the three months

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 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

Stock compensation expense

Depreciation and amortization expense

Selling, general and administrative expense

Loss from operations

(17,137,276 )

Other income (expenses)

Income tax expense

(17,227,806 )

Total Revenue.

We had revenues of $27,950,265

(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 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 $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 $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 $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 $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

to salaries and benefits, retirement benefits as well as costs related to recruitment, other compensation expenses of sales and marketing

and client management personnel, sales commission, travel and brand building, client events and conferences, training and retention of

senior management and other support personnel in enabling functions, telecommunications, utilities, travel and other miscellaneous administrative

SG&A expense also includes acquisition-related costs, legal and professional fees (which represent the costs of third party

legal, tax, accounting, immigration and other advisors), investment in product development, digital technology, advanced 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 period.

Other income/expenses .

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 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,

ended March 31, 2026, our income tax expense increased by $151,352 as compared to nil during the three months period ended March 31,

2025, primarily due to the recognition of income tax expense in our Indian operations for the first time.

3 unchanged sentences

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.

We incurred net loss of $3,582,571

for the three months ended March 31, 2026, as compared to a net loss of $5,681,353 for the three months ended March 31, 2025.

in net loss from March 31, 2026 to March 31, 2025 is primarily the result of increase in gross profit by $4,240,013 and reduction in

Research & development expense by $14,655 offset by increases in SG&A expense by $1,091,604, Stock compensation expense by $765,103,

Depreciation and amortization expense of $114,865 and income tax expense of $151,352.

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 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

Sushruta by the issuance of two One-Year 7% Promissory Notes (the “ 7% Notes ”) of $1,000,000 each, to meet certain working

capital requirements.

In July 2024, the Company raised $500,000 from Sushruta by the issuance of an additional 7% Note to finance its

ongoing working capital requirements.

In October and November 2024, the Company raised $500,000 from Sushruta by issuance of 7% Notes

to finance its ongoing working capital requirements.

All of the 7% Notes are payable in full together with accrued interest, after 12

months from their respective date of issuance.

All of the 7% Notes were repaid in full together with accrued interest thereon, upon maturity

in February 2025.

Sudhir Srivastava, through Sushruta, provided

the Company with $2,000,000 in financing on December 4, 2024, $5,000,000 in financing on January 3, 2025, $10,000,000 in financing on

January 20, 2025, $5,000,000 in financing on January 30, 2025 and $8,000,000 in financing on March 19.

Each tranche of financing provided by Dr.

was evidenced by a one-year convertible promissory note (collectively, the “ One-Year Notes ”).

The One-Year Notes bore

interest at the rate of seven percent (7%) per annum, which accrued and was due at maturity.

The One-Year Notes were convertible at the

option of the holder into shares of our common stock at a conversion price of $1.38 per share, subject to adjustment for stock splits,

stock dividends and similar recapitalization events.

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

to meet our working capital needs to date, believe that we have the resources to do so for the balance, we do not have any committed sources

of funding and there are no assurances that we will be able to secure additional funding if and when needed.

The condensed consolidated

financial statements included in this report have been prepared assuming that the Company will continue as a going concern.

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 stockholders.

These factors raise a substantial doubt about

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

For the nine months ended

September 30,

For the three months ended

Net cash provided by operating activities:

(17,227,806 )

Non-cash adjustments

Change in operating assets and liabilities

(14,798,851 )

Net cash used in operating activities

(17,023,417 )

Net cash used in investing activities

5 unchanged sentences

Cash Flows from Operating Activities

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,

During the three months ended March 31, 2026,

net cash used in operating activities was $2,311,936 resulting from our net loss of $3,582,571 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.

$3,239,977 primarily driven by depreciation charges, operating lease expense and stock compensation expense.

We had cash used in our

operating assets and liabilities of $1,969,342 primarily driven by increases in prepaid and other assets offset by increase in deferred

revenue and decrease in accounts payables.

During the three months ended March 31,

2025, net cash used in operating activities was $6,103,374 resulting from our net loss of $5,681,353 partially offset by non-cash

charges of $2,384,745 primarily driven by depreciation charges, operating lease expense and stock compensation expense.

used in our operating assets and liabilities of $2,806,766 primarily driven by increases in inventory, prepaid and other assets

offset by a decrease in accounts receivables and increase in deferred revenue.

Cash Flows from Investing Activities

During the nine months ended September 30, 2025,

During the three months ended March 31, 2026,

we had net cash used in investing activities of $54,189 in purchase of property and equipment.

During the nine months ended September 30, 2024,

During the three months ended March 31, 2025,

we had net cash used in investing activities of $872,804 in purchase of property and equipment.

Cash Flows from Financing Activities

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

to finance 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 condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern;

however, 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 stockholders.

Net cash provided by financing activities was

$18,159,697 for the three months ended March 31, 2026, compared to $22,406,019 for the three months ended March 31, 2025.

Financing activities

during the current period were primarily driven by net proceeds of $18,446,498 from Private Investment in Public Equity, partially offset

by net repayments under the bank overdraft facility of $286,801.

During the three months ended March 31, 2025,

we had net cash provided by financing activities of $22,406,019, which comprised of proceeds from $28,000,000 from issuance of convertible

notes to our principal shareholder offset by repayment of convertible notes to principal shareholder and other investors amounting to

$4,212,637 and $1,068,849 respectively, partially offset by net repayments under the bank overdraft facility of $312,495.

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.

generally accepted accounting principles (“U.S.

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.”

The preparation of condensed consolidated financial

statements in conformity with accounting principles generally accepted in the U.S.

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 condensed

consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could

differ from those estimates.

We consider the policies discussed below to be

critical to an understanding of our consolidated financial statements, as their application places the most significant demands on management’s

judgment regarding matters that are inherently uncertain at the time an estimate is made.

critical to an understanding of our condensed consolidated financial statements, as their application places the most significant demands

on management’s judgment regarding matters that are inherently uncertain at the time an estimate is made.

These policies include fair value of stock options

and standalone selling price in case of bundled revenue contracts.

These accounting policies, estimates and the associated

risks are set out below.

These accounting policies, estimates and the

associated risks are set out below.

Future events may not develop exactly as forecasted and estimates routinely require adjustment.

6 unchanged sentences

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

As of September 30, 2025, the Company has issued

As of March 31, 2026, the Company has issued

two types of equity incentives:

1 unchanged sentence

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

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 period.

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 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.

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 (prior to April 24, 2025) or on NASDAQ

(subsequent to April 24, 2025) as grant date fair value for RSUs.

Standalone Selling Price

1 unchanged sentence

products and services, including system, accessories, instruments and services.

Other than services, we generally deliver all of the products

Other than services, we generally deliver all of the

products upfront.

Each of these products and services is a distinct performance obligation.

System, instruments, accessories and services are also

sold on a standalone basis.

For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative

standalone selling price.

Standalone selling prices are based on observable prices at which we separately sell the products or services.

If a standalone selling price is not directly observable, then we estimate the standalone selling prices considering market conditions

and entity-specific factors including, but not limited to, historical pricing data, features and functionality of the products and services

and industry benchmark.

We regularly review standalone selling prices and maintain internal controls over establishing and updating these

Revenue that is allocated to the service obligation is deferred and recognized ratably over the service period upon expiration

of first year of service which is free and included in the system sale arrangements.

Recent Accounting Pronouncements

Refer to Note 1, Basis of Presentation and Summary

of Significant Accounting Policies, within the notes to the to our condensed consolidated financial statements included in this Quarterly

Report on Form 10-Q for more information about recent accounting pronouncements, the timing of their adoption, and our assessment, to

the extent we have made one, of their potential impact on our financial condition and results of operations.

System, instruments, accessories and services

are also sold on a standalone basis.

For multiple-element arrangements, revenue is allocated to each performance obligation based on

its relative standalone selling price.

Standalone selling prices are based on observable prices at which we separately sell the products

If a standalone selling price is not directly observable, then we estimate the standalone selling prices considering market

conditions and entity-specific factors including, but not limited to, historical pricing data, features and functionality of the products

and services and industry benchmark.

We regularly review standalone selling prices and maintain internal controls over establishing and

updating these estimates.

Revenue that is allocated to the service obligation is deferred and recognized ratably over the service period

upon expiration of first year of service which is free and included in the system sale arrangements.

Off-Balance Sheet Arrangements

2 unchanged sentences

or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Quantitative and Qualitative Disclosures About Market Risk.

Quantitative and Qualitative Disclosures

About Market Risk.

Not applicable.

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