What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-13 compared with 2026-05-13 · 214 added, 147 removed, 74 unchanged (83% of the section changed)

Discussion and Analysis of Financial Condition and Results of Operations.

The Company is engaged in the business of developing,

manufacturing, and selling a surgical robotic system under our proprietary brand “ SSi Mantra ,” together with allied

accessories and a wide range of surgical instruments capable of supporting cardiac and a variety of other surgical procedures under our

proprietary brand “SSi Mudra”.

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 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.

Management’s Discussion and Analysis

of Financial Condition and Results of Operations.

We are engaged in the business of developing, manufacturing, and selling

a surgical robotic system under its proprietary brand “ SSi Mantra ,” together with allied accessories and a wide range

of surgical instruments capable of supporting cardiac and a variety of other surgical procedures under its proprietary brand “SSi

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 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 markets.

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.

also undertaking development efforts to expand our product line in connection with our goal to make robotic surgery more affordable and

Our financial performance is largely driven by

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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.

Robotically assisted surgeries are increasingly being recognized as an approved

treatment modality from an insurance coverage perspective.

Our manufacturing operations being based in India

1 unchanged sentence

electronic/electrical/mechanical components, outsourced services and skilled manpower.

All these factors help us in having lower costs

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

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.

All these factors help achieve lower costs of production

and make our surgical robotic system cost effective and relatively affordable.

During the six months ended June 30, 2026, we sold 46 SSi Mantra surgical

robotic systems, installed 1 system on a pay-per-use basis and upgraded 3 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.

The following table provides selected balance

sheet data for the Company as of:

The financial statements appearing elsewhere in this report have been

prepared assuming that we will continue as a going concern.

We are still in our initial years of revenue generation by way of the sale

of our product and have 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 our ability to continue as a going concern.

Balance Sheet Data

Cash and cash equivalents

Restricted cash**

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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

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

To date, we have mainly relied on debt and equity raised in private

and public offerings to finance its operations.

During the balance of the year ending December 31, 2026, we plan to raise additional capital

through further private or public offerings of our 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 June 30, 2026, as compared to the three months

ended June 30, 2025

For the three months ended

Total Revenue

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Research & development expense

Stock compensation expense

Stock-based compensation expense

Depreciation and amortization expense

1 unchanged sentence

Loss from operations

Other income, net

Income tax expense

$ (2,661,350 )

Total Revenue.

For the three months ended

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.

For the three months

ended June 30, 2026, we had revenues of $13,939,709 (comprised of $12,361,986 of system sales, $1,142,525 of instrument sales,

$419,002 of warranty sales and lease income $16,196), compared to revenues of $10,000,305 (comprising $8,781,038 of system sales,

$1,007,830 of instrument sales, $193,359 of warranty sales and lease income $18,078), during the three months ended June 30, 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 June 30, 2026, as compared to the three months ended June 30, 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.

and development expenses for the three months ended June 30, 2026, were $2,395,694, as compared to $498,600 for the three months ended

June 30, 2025.

The increase was primarily attributable to higher expenditures incurred in connection with clinical trials and related

regulatory activities undertaken to support the Company’s efforts to obtain regulatory approvals, including U.S.

Food and Drug Administration

(“FDA”) clearance and CE Mark certification.

The increase also reflects higher professional service fees associated with these

regulatory initiatives, including regulatory consulting, clinical trial management, testing, documentation, and other compliance-related

In contrast, research and development activities during the prior-year period were primarily focused on routine product enhancements,

which required relatively lower levels of expenditure.

Stock-based compensation expense .

stock-based compensation expenses of $2,178,156 and $1,630,295 during the three months ended June 30, 2026 and 2025, respectively.

increase in stock-based 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 our 2016 Stock Incentive Plan.

Depreciation and amortization expense.

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.

had depreciation and amortization expense of $346,364 for three months ended June 30, 2026, as compared to $260,361 for three months ended

June 30, 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 .

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

administrative costs.

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 .

We incurred $4,452,090 in selling, general and administrative (“ SG&A ”) expense during the three months ended June

30, 2026, as compared to $3,428,788 for the three months ended June 30, 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 administrative costs.

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 expenses compared to the previous period is primarily due

to higher legal fees and expenses incurred for business events held during the current period, which were not present in the previous

Other income, net .

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.

$115,280 in interest income (net) for the three months ended June 30, 2026, as compared to $24 during the three months ended June 30,

The increase in net income was primarily attributable to the increase in interest income on sales and fixed deposits.

Income tax expense.

For the three months

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.

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 $3,582,571

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.

For the three months ended June 30, 2026, income tax expense was $505,276

as compared to $353,729 for the three months ended June 30, 2025, The increase is primarily due to increase in the taxable profits arising

from the Indian operations resulting in increase of income tax expense.

We incurred net loss of $2,661,350 for the three months ended June 30,

2026, as compared to a net loss of $256,691 for the three months ended June 30, 2025.

The increase in net loss from June 30, 2026 to June

30, 2025 is primarily the result of an increase in research & development expense of $1,897,094, SG&A expense of $1,023,302, stock-based

compensation expense of $547,861, depreciation and amortization expense of $86,003 and income tax expense of $151,547 offset by an increase

in gross profit by $1,185,892.

Six months ended June 30, 2026, as compared to the six months

ended June 30, 2025

For the six month ended

Total Revenue

Cost of revenue

(12,612,904 )

Research & development expense

Stock-based compensation expense

Depreciation and amortization expense

Selling, general and administrative expense

Loss from operations

Income tax expense

$ (6,243,921 )

$ (5,938,044 )

Total Revenue.

For the six months

ended June 30, 2026, we had revenues of $25,041,075 (comprised of $21,937,356 of system sales, $2,293,753 of instrument sales,

$776,688 of warranty sales and lease income $33,278), compared to revenues of $15,120,915 (comprising $13,283,520 of system sales,

$1,485,038 of instrument sales, $315,863 of warranty sales and lease income $36,494), during the six months ended June 30, 2025.

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

during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025.

Research and Development Expenses.

Research and development expenses for the six months ended June 30,

2026, were $3,391,134, as compared to $1,508,695 for the six months ended June 30, 2025.

The increase was primarily attributable to higher

expenditures incurred in connection with clinical trials and related regulatory activities undertaken to support the Company’s efforts

to obtain regulatory approvals, including U.S.

Food and Drug Administration (“FDA”) clearance and CE Mark certification.

increase also reflects higher professional service fees associated with these regulatory initiatives, including regulatory consulting,

clinical trial management, testing, documentation, and other compliance-related activities.

Additionally, our continued to invest in enhancing

the design and technological capabilities of its existing SSi Mantra system and expanding our product offerings.

Stock-based compensation expense.

We had stock-based compensation expenses of $5,322,471 and $4,009,507

during the six months ended June 30, 2026 and 2025, respectively.

The increase in stock-based 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 our 2016 Stock

Incentive Plan.

Depreciation and amortization expense.

had depreciation and amortization expense of $670,111 for six months ended June 30, 2026, as compared to $469,243 for six months ended

June 30, 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.

We incurred $8,941,387 in selling, general and administrative (“ SG&A ”) expense during the six months ended June

30, 2026, as compared to $6,638,587 for the six months ended June 30, 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 administrative costs.

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 expenses compared to the previous period is primarily due

to higher legal and underwriting fees, increased expenses associated with our uplisting to Nasdaq, and expenses incurred for business

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

Other income, net .

We have recognized $309,639 in interest income net for the six months

ended June 30, 2026, as compared to $39,451 during the six months ended June 30, 2025.

The increase was primarily attributable to higher

interest income on sales and fixed deposits, together with nil interest expense on convertible notes, as such expense was incurred during

the prior-year period.

Income tax expense.

For the six months

ended June 30, 2026, income tax expense was $656,628 as compared to $353,729 for the six months ended June 30, 2025.

The increase was

primarily due to an increase in the taxable profits arising from the Indian operations as compared to the previous period resulting in

an increase of income tax expense.

We incurred a net loss of $6,243,921

for the six months ended June 30, 2026, as compared to a net loss of $5,938,044 for the six months ended June 30, 2025.

The increase in

net loss from June 30, 2026 to June 30, 2025 is primarily the result of an increase in research & development expense of $1,882,439,

SG&A expense of $2,302,800, stock-based compensation expense of $1,312,964, depreciation and amortization expense of $200,868 and

income tax expense of $302,899 offset by an increase in the gross profit by $5,425,905.

Liquidity and Capital Resources

The Company expects to require substantial funds

for scaling up its operations, for incurring capital expenditure to have its own in-house machining and tooling capacity and to continue

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

For the three months ended

We expect to require substantial funds for scaling up our operations,

incurring capital expenditure to have our own in-house machining and tooling capacity and to continue to finance our research and development

work in the field of surgical robotics.

Cash Flow Summary:

For the six months ended

Net cash provided by operating activities:

$ (6,243,921 )

$ (5,938,044 )

Non-cash adjustments

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Cash Flows from Operating Activities

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

$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.

During the six months ended June 30, 2026, net cash used in operating

activities was $6,546,449 resulting from our net loss of $6,243,921 partially offset by non-cash charges of $5,735,820 primarily driven

by depreciation charges, operating lease expense and stock-based compensation expense.

We had cash used in our operating assets and liabilities

of $6,038,348 primarily driven by increases in accounts receivables, prepaid and other assets, inventory and decrease accounts payables

offset by increase in deferred revenue and income taxes payable.

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-based 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.

Cash Flows from Investing Activities

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 three months ended March 31, 2025,

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

During the six months ended June 30, 2026, we

had net cash used in investing activities of $215,060 in purchase of property and equipment.

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.

Cash Flows from Financing Activities

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.

$21,638,510 for the six months ended June 30, 2026, compared to $21,703,921 for the six months ended June 30, 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.

during the current period were primarily driven by net proceeds of $18,446,498 from a private placement completed in March 2026, and proceeds

received from bank overdraft facility of $3,192,012.

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.

Critical Accounting Policies

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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.

Stock Compensation Expense

Stock-based Compensation Expense

Under the fair value recognition provisions of

4 unchanged sentences

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

As of March 31, 2026, the Company has issued

two types of equity incentives:

As of June 30, 2026, we have 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 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 provide employees with the right, but not the

obligation, to purchase shares of our common stock at a specified price, within a defined period, as per the terms of the stock option

Stock-based compensation expense associated with our 2016 Stock Incentive Plan and its 2026 Stock Incentive Plan (adopted in

April 2026) 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 Awards (Restricted Stock Awards, or RSAs):

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.

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

We use the last three month’s 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 upfront.

Other than services, we generally deliver all of the products

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

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.

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.

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