SS Innovations International, Inc 10-Q for FY2025 Q3
SS Innovations International, Inc. (SSII)
About this 10-Q
SS Innovations International, Inc filed this 10-Q on October 28, 2025, covering the quarter ended September 30, 2025 (FY2025 Q3).
Headline figures
Quarter ended September 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $12.83M
- up 192.5% from $4.39M a year earlier
- Net loss
- $3.72M
- compared with a net loss of $3.25M a year earlier
- Diluted EPS
- -$0.02
- compared with -$0.02 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
or
Commission file number:
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices)
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Securities Registered Pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| The |
Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the
preceding 12 months (or for such shorter period that the Registrant was required to submit such files.)
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “accelerated filer”, “large accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer | ☐ | Accelerated Filer | ☐ |
| ☒ | Smaller reporting company | ||
| Emerging growth company | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
There were
Unless the context otherwise requires, as used in this Quarterly Report on Form 10-Q (this “Quarterly Report”) the terms “SSi,” “the Company,” “we,” “us,” and “our” refer to SS Innovations International, Inc., and where appropriate, our subsidiaries.
Forward Looking Statements
This Quarterly Report release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “will,” “intend,” “may,” “plan,” “project,” “should,” “could,” “seek,” “designed,” “potential,” “forecast,” “target,” “objective,” “goal,” or the negatives of such terms or other similar expressions to identify such forward-looking statements. These statements relate to future events or SSi’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
These statements are not guarantees of future performance and are subject to numerous risks, uncertainties, and assumptions that are difficult to predict.
Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we do not assume any obligation to update any forward-looking statement. We disclaim any intention or obligation to update or revise any forward-looking statement contained herein, whether as a result of new information, future events or otherwise.
TABLE OF CONTENTS
i
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
SS INNOVATIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| As of | ||||||||||
| Notes | September 30, 2025 |
December 31, 2024 |
||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current Assets: | ||||||||||
| Cash and cash equivalents | 7 | $ | $ | |||||||
| Restricted cash | 7 | |||||||||
| Accounts receivable, net | 6 | |||||||||
| Inventory | 14 | |||||||||
| Prepaids and other current assets | 8 | |||||||||
| Total Current Assets | ||||||||||
| Property, plant, and equipment, net | 4 | |||||||||
| Right of use asset, net | 15 | |||||||||
| Deferred tax assets, net | 16 | |||||||||
| Accounts receivable, net-non current | 6 | |||||||||
| Restricted cash- non current | 7 | |||||||||
| Prepaids and other non current assets | 8 | |||||||||
| Total Assets | $ | $ | ||||||||
| LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||||
| Current Liabilities | ||||||||||
| Bank overdraft facility | 11 | $ | $ | |||||||
| Notes payable | 10 | |||||||||
| Current portion of operating lease liabilities | 15 | |||||||||
| Accounts payable | 9 | |||||||||
| Deferred revenue | 12 | |||||||||
| Accrued expenses & other current liabilities | 9 | |||||||||
| Total Current Liabilities | ||||||||||
| Operating lease liabilities, less current portion | 15 | |||||||||
| Deferred Revenue- non current | 12 | |||||||||
| Other non current liabilities | 9 | |||||||||
| Total Liabilities | $ | $ | ||||||||
| Commitments and contingencies | 21 | |||||||||
| Stockholders ‘equity: | ||||||||||
| Preferred stock, authorized |
13 | |||||||||
| Common stock, |
13 | |||||||||
| Accumulated other comprehensive income (loss) | 13 | ( |
) | ( |
) | |||||
| Additional paid in capital | 13 | |||||||||
| Capital reserve | ||||||||||
| Accumulated deficit | ( |
) | ( |
) | ||||||
| Total stockholders’ equity | ||||||||||
| Total liabilities and stockholders’ equity | $ | $ | ||||||||
See accompanying notes to Condensed Consolidated Financial Statements
1
SS INNOVATIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
| For the three months ended | ||||||||||
| Notes | September 30, 2025 | September 30, 2024 | ||||||||
| REVENUES | ||||||||||
| System sales | 12 | |||||||||
| Instruments sale | 12 | |||||||||
| Warranty sale | 12 | |||||||||
| Lease income | 12 | |||||||||
| Total revenue | $ | $ | ||||||||
| Cost of revenue | ( | ) | ( | ) | ||||||
| GROSS PROFIT | ||||||||||
| OPERATING EXPENSES: | ||||||||||
| Research & development expense | ||||||||||
| Stock compensation expense | 19 | |||||||||
| Depreciation and amortization expense | 4 | |||||||||
| Selling, general and administrative expense | ||||||||||
| TOTAL OPERATING EXPENSES | ||||||||||
| Loss from operations | ( | ) | ( | ) | ||||||
| OTHER INCOME (EXPENSE): | ||||||||||
| Interest Expense | ( | ) | ( | ) | ||||||
| Interest and other income, net | ||||||||||
| TOTAL INCOME / (EXPENSE), NET | ( | ) | ( | ) | ||||||
| LOSS BEFORE INCOME TAXES | ( | ) | ( | ) | ||||||
| Income tax expense | 16 | |||||||||
| NET LOSS | $ | ( | ) | $ | ( | ) | ||||
| Net loss per share - basic and diluted | 2(r) | $ | ( | ) | $ | ( | ) | |||
| Weighted average - basic shares | 2(r) | |||||||||
| Weighted average - diluted shares | 2(r) | |||||||||
| CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE LOSS | ||||||||||
| NET LOSS | $ | ( | ) | $ | ( | ) | ||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||
| Foreign currency translation loss | ( | ) | ( | ) | ||||||
| Retirement Benefit (net of tax) | 17 | ( | ) | ( | ) | |||||
| Income tax effect relating to retirement benefit | 16 | ( | ) | |||||||
| TOTAL OTHER COMPREHENSIVE LOSS | ( | ) | ( | ) | ||||||
| TOTAL COMPREHENSIVE LOSS | $ | ( | ) | $ | ( | ) | ||||
See accompanying notes to Condensed Consolidated Financial Statements.
2
SS INNOVATIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
| For the nine months ended | ||||||||||||
| Notes | September 30, 2025 | September 30, 2024 | ||||||||||
| REVENUES | ||||||||||||
| System sales | 12 | |||||||||||
| Instruments sale | 12 | |||||||||||
| Warranty sale | 12 | |||||||||||
| Lease income | 12 | |||||||||||
| Total revenue | $ | $ | ||||||||||
| Cost of revenue | ( | ) | ( | ) | ||||||||
| GROSS PROFIT | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||
| Research & development expense | ||||||||||||
| Stock compensation expense | 19 | |||||||||||
| Depreciation and amortization expense | 4 | |||||||||||
| Selling, general and administrative expense | ||||||||||||
| TOTAL OPERATING EXPENSES | ||||||||||||
| Loss from operations | ( | ) | ( | ) | ||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||
| Interest Expense | ( | ) | ( | ) | ||||||||
| Interest and other income, net | ||||||||||||
| TOTAL INCOME / (EXPENSE), NET | ( | ) | ||||||||||
| LOSS BEFORE INCOME TAXES | ( | ) | ( | ) | ||||||||
| Income tax expense | 16 | |||||||||||
| NET LOSS | $ | ( | ) | $ | ( | ) | ||||||
| Net loss per share - basic and diluted | 2 | (r) | $ | ( | ) | $ | ( | ) | ||||
| Weighted average - basic shares | 2 | (r) | ||||||||||
| Weighted average - diluted shares | 2 | (r) | ||||||||||
| CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE LOSS | ||||||||||||
| NET LOSS | $ | ( | ) | $ | ( | ) | ||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
| Foreign currency translation loss | ( | ) | ( | ) | ||||||||
| Retirement Benefit (net of tax) | 17 | ( | ) | |||||||||
| Income tax effect relating to retirement benefit | 16 | |||||||||||
| TOTAL OTHER COMPREHENSIVE LOSS | ( | ) | ( | ) | ||||||||
| TOTAL COMPREHENSIVE LOSS | $ | ( | ) | $ | ( | ) | ||||||
See accompanying notes to Condensed Consolidated Financial Statements.
3
SS INNOVATIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024
(Unaudited)
| Preferred Stock | Common Stock | Common Stock to be Issued | Additional Paid-In | Accumulated | Capital | Accumulated other comprehensive | Total Stockholders’ | |||||||||||||||||||||||||||||||||||||||||
| Notes | Number | Amount | Number | Amount | Number | Amount | Capital | Deficit | Reserve | income (loss) | equity | |||||||||||||||||||||||||||||||||||||
| Balance as at December 31, 2024 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Stock compensation | 19 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common stock issued against exercise of warrants | 13 | — | — | ( | ) | |||||||||||||||||||||||||||||||||||||||||||
| Conversion of notes payable to equity | 13 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||||
| Balance as at March 31, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||||||||
| Stock compensation | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Common stock issued against exercise of options | — | — | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Stock issued for services | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||
| Balance as at June 30, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||||||||
| Stock compensation | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Common stock issued against exercise of options | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Stock issued for services | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||
| Balance as at September 30, 2025 | $ | $ | — | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||||||||||||||||||
| Balance as at December 31, 2023 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Stock compensation | 19 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common stock issued against exercise of warrants | 13 | — | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||
| Stock issued for services | 13 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||
| Balance as at March 31, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||||||||
| Stock compensation | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||
| Balance as at June 30, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||||||||
| Stock compensation | 19 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Stock issued for services | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||
| Balance as at September 30, 2024 | — | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||||||
See accompanying notes to Condensed Consolidated Financial Statements.
4
SS INNOVATIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the nine months ended | ||||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Operating lease expense | ||||||||
| Interest Expense | ||||||||
| Interest and other income, net | ( | ) | ( | ) | ||||
| (Reversal of) / Provision for credit loss reserve | ||||||||
| Deferred income tax benefit | ( | ) | ||||||
| Stock compensation expense | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | ( | ) | ( | ) | ||||
| Inventory, net | ( | ) | ( | ) | ||||
| Deferred revenue | ||||||||
| Prepaids and other assets | ( | ) | ( | ) | ||||
| Accounts payable | ||||||||
| Income taxes payable, net | ||||||||
| Accrued expenses & other liabilities | ( | ) | ||||||
| Operating lease payment | ( | ) | ( | ) | ||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property, plant and equipment | ( | ) | ( | ) | ||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from bank overdraft facility (net) | ||||||||
| Proceeds from issuance of promissory notes to principal stockholder | ||||||||
| Proceeds from issuance of convertible notes to principal stockholder | ||||||||
| Proceeds from issuance of convertible notes to other investors | ||||||||
| Repayment of convertible notes to principal stockholder, including interest | ( | ) | ||||||
| Repayment of convertible notes to other investors, including interest | ( | ) | ||||||
| Net cash provided by financing activities | ||||||||
| Net change in cash | ( | ) | ||||||
| Effect of exchange rate on cash | ( | ) | ( | ) | ||||
| Cash and cash equivalents at the beginning of the period | ||||||||
| Cash and cash equivalents at end of the period | $ | $ | ||||||
| ^ For cash and cash equivalents and restricted cash, refer Note 7 | ||||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Conversion of convertible notes into common stock, including interest | $ | $ | ||||||
| Transfer of systems from inventory to property, plant and equipment | $ | $ | ||||||
| Transfer of systems from property, plant and equipment to inventory | $ | $ | ||||||
See accompanying notes to Condensed Consolidated Financial Statements.
5
SS INNOVATIONS INTERNATIONAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 – FINANCIAL STATEMENTS
Organization
SS Innovations International, Inc. (the “Company”
or “SSII”) was incorporated as AVRA Surgical Microsystems, Inc. in the State of Florida on
On April 14, 2023, a wholly owned subsidiary of
the Company, AVRA-SSI Merger Corporation (“Merger Sub”) merged with CardioVentures, Inc., a Delaware corporation (“CardioVentures”),
the indirect parent of Sudhir Srivastava Innovations Pvt. Ltd., an Indian private limited company engaged in the business of developing
innovative surgical robotic technologies. As a result of the transaction, a “change in control” of the Company took
place. In addition, among other matters, the Company changed its name to “SS Innovations International, Inc.” and implemented
a
The Transaction (Note 5) was accounted for as a recapitalization in accordance with GAAP (the “Recapitalization”). Under this method, AVRA was treated as the “acquired” company (the “Accounting Acquiree”) and Cardio Ventures Inc., the accounting acquirer, was assumed to have issued stock for the net assets of AVRA, accompanied by a recapitalization. Accordingly, for the year ended December 31, 2022, CardioVentures has been considered the ultimate holding company. Prior to October 18, 2022, Cardio Ventures Pvt Ltd., Bahamas (Cardio Bahamas), was in existence and served as the ultimate holding company. On October 18, 2022, Cardio Ventures Inc. acquired controlling interest in Otto Pvt Ltd. from Cardio Bahamas, making Cardio Ventures Inc. the ultimate holding company.
In April 2025, the Company successfully completed its uplisting to the Nasdaq Stock Market LLC (“NASDAQ”), with its common stock listed for trading on NASDAQ under the ticker symbol “SSII” effective April 25, 2025.
Basis of Presentation
Unaudited Interim Condensed Consolidated Financial Statements
The interim condensed consolidated balance sheet as of September 30, 2025, and the interim condensed consolidated statement of operations, comprehensive loss and stockholders’ equity for the three and nine months ended September 30, 2025 and September 30, 2024 and flows for the nine months ended September 30, 2025 and September 30, 2024 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of our financial position as of September 30, 2025 and our results of operations for the three and nine months and cash flows for the nine months ended September 30, 2025 and September 30, 2024. The financial data and other financial information disclosed in these notes to the interim condensed consolidated financial statements related to the three nine months are also unaudited. The interim condensed consolidated results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any future annual or interim period. The condensed consolidated balance sheet as of December 31, 2024 included herein was produced from the audited consolidated financial statements as of that date. These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2024 as filed by us with the U.S. Securities and Exchange Commission (the “SEC”) on April 15, 2025.
The interim condensed consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The accompanying condensed financial statements have been prepared on a consolidated basis and reflect the condensed consolidated financial statements of SS Innovations International, Inc. and all of its subsidiaries (the “Group”).
The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and gains and losses arising from intra-group transactions, are eliminated while preparing condensed consolidated financial statements. Certain prior period amounts have been reclassified to conform to the current year presentation.
Accounting policies of the respective individual subsidiaries are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under GAAP.
6
Going Concern
The accompanying condensed consolidated financial
statements have been prepared on a going concern basis which implies the Company will continue to meet its obligations for the next 12
months as of the date these financial statements are issued. The Company had a working capital surplus of $
In February 2024, the Company raised $
In April 2024, the Company raised $
In July 2024, the Company raised $
In October and November 2024, the Company raised
$
In December 2024, the Company raised $
In January 2025, the Company raised $
In February 2025, the Company paid $
In February 2025, the Company paid $
In February 2025, the Company converted three
In February 2025, the Company converted Convertible
Notes worth $
In March 2025, the Company converted Convertible
Notes worth $
However, the Company’s existing cash resources and income from operations are not expected to provide sufficient funds to carry out the Company’s operations and business development through the next twelve (12) months. The management of the Company is making efforts to raise further funding to scale up operations and meet its longer-term capital needs. While management of the Company believes that it will be successful in its capital formation and planned expansion of its operating activities, there can be no assurance that the Company will be able to raise additional equity capital or be successful in generating additional revenues and ultimately achieving profitability. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.
7
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
| a) | Use of Estimates |
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses. The Company regularly evaluates estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 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 made by management. Significant estimates include fair value of stock options and standalone selling price in case of bundled revenue contracts.
| b) | Cash and Cash Equivalents |
The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents.
| c) | Restricted Cash |
Restricted cash includes any cash and cash equivalents that are legally restricted as to withdrawal or usage for the Company’s operations. For the purposes of the condensed consolidated statement of cash flows, the Company includes in its cash and cash-equivalent balances those amounts that have been classified as restricted cash and restricted cash equivalents.
| d) | Account Receivables and Allowance for Expected Credit Losses |
The Company’s account receivables are due from customers relating to contracts to supply surgical robotic systems, instruments, and accessories and to provide post sales warranty/maintenance services. The Company also sells surgical robotic systems under deferred payment arrangements and in such cases, the amounts due and recoverable beyond the one year period at the balance sheet date are classified as long-term receivables. Collateral is currently not required. The Company also maintains credit loss allowance for estimated losses resulting from the inability of the Company’s customers to make payments. The Company periodically reviews these estimated allowances, including an analysis of the customers’ payment history and creditworthiness, the age of the trade receivable balances and current economic conditions that may affect a customer’s ability to make payments as well as historical collection trends for its customers as a whole. Based on this review, the Company specifically reserves for those accounts deemed uncollectible or likely to become uncollectible. When receivables are determined to be uncollectible, principal amounts of such receivables outstanding are deducted from the allowance.
| e) | Employee Benefits |
Contributions to defined contribution plans are charged to the condensed consolidated statement of operations and comprehensive loss in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are recognized in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, future compensation increases and attrition rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) (“OCI”) and amortized to net periodic benefit cost over the expected remaining period of service of the covered employees using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. These assumptions may not be within the control of the Company and accordingly it is reasonably possible that these assumptions could change in future periods. The Company includes the service cost component of the net periodic benefit cost in the same line item or items as other compensation costs arising from services rendered by the respective employees during the period. The interest cost, expected return on plan assets and amortization of actuarial gains/loss, are included in “Other income/(expense), net”. Refer to Note 17 - Employee Benefit Plans to the unaudited interim condensed consolidated financial statements for details.
8
| f) | Foreign Currency Translation |
The Company’s reporting currency is U.S.
dollars. The functional currency of the Company is the U.S. dollar. The functional currency of the Company’s subsidiary in India
is Indian National Rupee (“INR”). Transactions denominated in INR are translated to U.S. dollars at rates which approximate
those in effect on the transaction dates. Monetary assets and all liabilities denominated in foreign currencies on September 30, 2025
and September 30, 2024 are translated at the exchange rate in effect as of those dates. Stockholders’ equity is translated at the
appropriate historical rates. Included in interest and other income foreign exchange gain resulting from such translations of approximately
$
The functional currency of each entity in the group is the currency of the primary economic environment in which it operates. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured into functional currency at the rates of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities are remeasured to the functional currency at exchange rates that prevailed on the date of inception of the transaction. All foreign exchange gains and losses arising on re-measurement are recorded in the Company’s condensed consolidated statement of operations and comprehensive loss.
The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Share capital and other equity items are translated at exchange rates that prevailed on the date of inception of the transaction. Resulting translation adjustments are included in “Accumulated other comprehensive income/(loss)” in the condensed consolidated balance sheet.
The relevant translation rates are as follows:
for the nine months ended September 30, 2025 closing rate at
The relevant translation rates are as follows:
for the nine months ended September 30, 2024 closing rate at
The relevant translation rates are as follows:
for the year ended December 31, 2024 closing rate at
| g) | Inventory |
The Company’s inventory consists of finished goods in the form of fully assembled and tested surgical robotic system, semi-finished goods in the form of various sub-systems of the surgical robotic systems in various stages of assembly and manufacturing and raw material in the form of various mechanical, electrical, and other material components, parts, motors, encoders etc. which are not yet assembled/manufactured. The inventory is valued at the lower of cost (first-in, first-out) or estimated net realizable value.
| h) | Cost of Sales |
Cost of sales primarily consists of manufacturing cost incurred for production of the Mantra System and the related instruments and accessories which are used to facilitate the use of the Mantra System. Further, Cost of sales also includes other costs such as salaries and rent which are directly attributable to the manufacturing process.
| i) | Selling and Administrative Expenses |
Selling and administrative expenses primarily consist of indirect expenses which are not directly attributable to any other identified expense category of the Company.
9
| j) | Fair value measurements |
ASC Topic 820, Fair Value Measurements and Disclosures defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability as against assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk. The fair value hierarchy consists of the following three levels:
| ● | Level I — Quoted prices for identical instruments in active markets. |
| ● | Level II — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. |
| ● | Level III — Instruments whose significant value drivers are unobservable. |
| k) | Concentration of Credit Risk |
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. and cash equivalents, time deposits and accounts receivable. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. The surplus funds are maintained as cash and cash equivalents and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. The Company’s exposure to credit risk on account receivable is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. To mitigate this risk the Company evaluates the creditworthiness of its customers in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
| l) | Commitments and Contingencies |
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recognized when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. A disclosure for a contingent liability is made when there is a possible obligation that may require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Legal costs incurred in connection with such liabilities are expensed as incurred. Capital commitments are disclosed in the condensed consolidated financial statements.
| m) | Revenue Recognition |
The Company recognizes revenue in accordance with Accounting Standards Codification, or ASC606, the core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services. To achieve this core principle, five basic criteria must be met before revenue can be recognized:
| ● | Identification of a contract with a customer or placement of a purchase order by the customer. |
| ● | Identification of the performance obligations in the contract or the purchase order as the case may be. |
| ● | Determination of the transaction price which is reflected in the purchase order placed by the customer. |
| ● | Allocation of the transaction price to the performance obligations in the contract; and |
| ● | Recognition of revenue when or as the performance obligations are satisfied as per the terms of the purchase order received from the customer. |
The Company accounts for revenues when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Product type and payment terms vary by client.
10
| System | Sales: |
The Company recognizes revenue when the “transfer of control” occurs, which typically takes place upon the delivery of the system to the customer. In cases where a deferred payment arrangement exists, revenue is recognized at the present value of the consideration receivable, adjusted by the present value of any extended warranty obligations.
Standalone Selling Price
Our system sale arrangements contain multiple products and services, including system, accessories, instruments and services. 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 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.
Key Terms of Customer Contracts
The Company enters into binding contracts with customers through either an agreement or a sales order, with all terms and conditions mutually agreed upon by both parties. The key terms and conditions include:
| 1. | Finalization of Product and Price: Agreement on the specific model of the “SSI Mantra” system and its selling price. |
| 2. | Payment Terms: Determination of payment terms, which may involve either a deferred payment arrangement or a one-time payment upon delivery and installation of the system at the customer’s premises. |
| 3. | Deferred
Payment Model: For deferred payments, customers typically pay an advance amount before the dispatch of the system. The remaining balance
is payable in yearly installments over a period of |
| 4. | Warranty
Services: Instead of negotiating the sales price, the Company provides a warranty service that includes a |
| 5. | Delivery, Installation, and Training: The Company is responsible for delivering and installing the system at the customer’s premises. Post-installation, the Company provides free training to surgeons and surgical staff to enable them to operate the system effectively. With respect to the sale of surgical robotic systems, training is provided at the time of delivery to the end customer, however the effort involved is considered negligible. |
| 6. | Transfer of Risk and Rewards: The risks and rewards associated with the system are transferred to the customer upon delivery to their premises. |
Instrument and Accessories Sales:
We also sell instruments for use by surgeons in conjunction with the use of our surgical robotic systems. These instruments are consumable items for our hospital customers, and we recognize the revenues from the sale of instruments as and when the instruments are delivered to the customer.
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| Warranty and Annual Maintenance Contract Sales: |
By application of ASC 606, a portion of the equipment sales value which is attributable towards the component of annual maintenance contracts is shown separately as Warranty sales. Once the assurance warranty or standard warranty periods are over, the maintenance contracts become effective and actual income from maintenance contracts is recognized as a distinct revenue stream.
| Lease Income: |
Under ASC 842, in cases where the systems are installed on a pay per procedure basis, the Company earns revenue which is a mix of fixed and variable components. Variable component consists of revenue share which is agreed based on the number and type of procedures performed by the customer, while the fixed component involves an agreed amount which the customer is obliged to pay over the lease term. Accordingly, the fixed component is recognized on a straight-line basis as lease income. Since the title to the system is not getting transferred to the counterparty, hence the cost relating to those systems is capitalized under property, plant and equipment and accordingly depreciation is charged over its period of useful life.
| n) | Property Plant & Equipment |
Property and equipment are stated at cost, which is generally comprised of the purchase price for such property or equipment, non-refundable duties and taxes, Installation cost, freight, other associated costs, but excludes any discounts and/or rebates, less accumulated depreciation and impairment.
The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.
Property Plant and Equipment depreciated using
the straight-line method at rates determined as per estimated useful life of the assets.
| Years | ||||
| Computer & peripherals | ||||
| Furniture | ||||
| Leasehold improvement | ||||
| Office equipment | ||||
| Plant and machinery | ||||
| Server & networking | ||||
| Vehicles | ||||
| Pay per use systems | ||||
| Demo system | ||||
| o) | Long-lived Assets |
In accordance with ASC 360, “Property Plant and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset and current expectation that the asset will more than likely not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the discounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain circumstances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.
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| p) | Stock Compensation Expense |
Under the fair value recognition provisions of ASC Topic 718, Compensation-Stock Compensation, cost is measured at the grant date based on the fair value of the award and is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period.
Determining the fair value of stock-based awards at the grant date requires significant judgment, including estimating the expected term over which the stock awards will be outstanding before they are exercised and the expected volatility of our stock.
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 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.
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. The Company uses 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.
The Company recognizes stock-based compensation expense in the condensed consolidated statement of operations and comprehensive loss for both employees and non-employee directors based on the grant-date fair value of the awards. These costs are recognized on a straight-line basis over the requisite service period, or until the date at which the recipient becomes eligible for retirement, if shorter. Forfeitures of equity awards are accounted for as they occur.
The Company accounts for equity instruments issued in exchange for goods or services from non-employees in accordance with ASC Topic 718 Stock Compensation. The costs associated with these equity instruments are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable.
| q) | Income Taxes |
We record income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and attributable to operating loss and tax credit carry forwards. The carrying amounts of deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the more-likely-than-not realization threshold. This assessment considers, among other matters, the nature, frequency, and severity of current and cumulative losses, the duration of statutory carry forward periods, and tax planning alternatives. We use a two-step approach in recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals and litigation processes, if any. The second step is to measure the largest amount of tax benefit as the largest amount that is more likely than not to be realized upon settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
The Company determines the tax provision for interim periods using an estimate of its annual effective tax rate. Each quarter, the Company updates its estimate of annual effective tax rate for India Jurisdiction, and if its estimated tax rate changes, the Company makes a cumulative adjustment.
Management judgment is required in determining provision for income taxes, deferred tax assets and liabilities, tax contingencies, unrecognized tax benefits, and any required valuation allowance, including taking into consideration the probability of the tax contingencies being incurred. Management assesses this probability based upon information provided by its tax advisers, its legal advisers and similar tax cases. If at a later time the assessment of the probability of these tax contingencies changes, accrual for such tax uncertainties may increase or decrease.
The Company has a valuation allowance due to management’s overall assessment of risks and uncertainties related to its future ability in the U.S. to realize and, hence, utilize certain deferred tax assets, primarily consisting of net operating losses (“NOLs”), carry forward temporary differences and future tax deductions.
The effective tax rate for annual and interim reporting periods could be impacted if uncertain tax positions that are not recognized are settled at an amount which differs from the Company’s estimate. Finally, if the Company is impacted by a change in the valuation allowance resulting from a change in judgment regarding the realizability of deferred tax assets, such effect will be recognized in the interim period in which the change occurs.
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| r) | Basic and Diluted Loss per Share |
The following table sets forth the computation of basic and diluted earnings per share:
| For the three months ended | ||||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Net Loss (a) | ( | ) | ( | ) | ||||
| Basic weighted average common shares outstanding (b) | ||||||||
| Dilutive effect of convertible note | ||||||||
| Dilutive effect of stock-based awards | ||||||||
| Diluted weighted average common shares outstanding | ||||||||
| Earnings per share attributable to SS Innovations International, Inc. stockholders: | ||||||||
| Basic and Diluted (a)/(b) | ( | ) | ( | ) | ||||
| For the nine months ended | ||||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Net Loss (a) | ( | ) | ( | ) | ||||
| Basic weighted average common shares outstanding (b) | ||||||||
| Dilutive effect of convertible note (1) | ||||||||
| Dilutive effect of stock-based awards | ||||||||
| Diluted weighted average common shares outstanding | ||||||||
| Earnings per share attributable to SS Innovations International, Inc. stockholders: | ||||||||
| Basic and Diluted | ( | ) | ( | ) | ||||
| (1) | Represents dilution effect related to the interest on convertible notes in the calculation of diluted weighted average shares outstanding for the portion of the period. Refer Note 10 – Notes Payable to the condensed consolidated financial statements for further details. |
Basic net loss per share is calculated by dividing the net loss attributable to SSII stockholders by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period. For periods in which we report net losses, diluted net loss per share is the same as basic net loss per share because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.
| s) | Research and Development Costs |
In accordance with ASC Topic 730 Research and development costs are expensed as incurred and include costs of material, salaries, benefits and other headcount-related costs, contract and other outside service fees, and facilities and overhead costs.
| t) | Fair Value of Financial Instruments |
Our financial instruments consist principally of accounts receivable, amounts due to related parties and promissory notes payable. The carrying amounts of cash and cash equivalents and promissory notes approximate fair value because of the short-term nature of these items.
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| u) | Recent Accounting Pronouncements |
In November 2024, FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40), which requires entities to disaggregate any relevant expense caption presented on the face of the income statement within continuing operations into the following required natural expense categories, as applicable: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities or other depletion expenses. An entity’s share of earnings or losses from investments accounted for under the equity method is not a relevant expense caption that requires disaggregation. Such ASU’s amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of this pronouncement on our disclosures and our consolidated financial statements.
In November 2023, FASB issued ASU No. 2023-07, Segment Reporting (“ASC Topic 280”): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements on an annual and interim basis for all public entities by requiring disclosure of significant segment expenses that are regularly reviewed by the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The ASU also allows, in addition to the measure that is most consistent with U.S. GAAP, the disclosure of additional measures of segment profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.
We adopted this ASU on December 31, 2024, and applied the amendment retrospectively to all periods presented in our consolidated financial statements (refer to Note 3, Segments, for further details).
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Under this ASU, public entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). This ASU’s amendments are effective for all entities that are subject to Topic 740, Income Taxes, for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of this pronouncement on our disclosures.
| v) | Leases |
The Company determines if an arrangement is a lease at inception of the contract. The Company’s assessment is based on whether: (1) the contract involves the use of a distinct identified asset, (2) the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term of the contract, and (3) the Company has the right to direct the use of the asset. A lease is classified as a finance lease if any one of the following criteria are met: (1) the lease transfers ownership of the asset by the end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the lease term is for a major part of the remaining useful life of the asset or (4) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset.
Operating leases are presented within “Right-of-use assets, operating lease” “Current portion of operating lease liabilities” and “Operating lease liabilities, less current portion” in the Company’s condensed consolidated balance sheet.
Right-of-use (ROU) assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangement. Lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets are recognized at commencement date in an amount equal to lease liability, adjusted for any lease prepayments, initial direct costs, and lease incentives. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date. The Company determines the incremental borrowing rate by adjusting the benchmark reference rates with appropriate financing spreads applicable to the respective geographies where the leases are entered and lease specific adjustments for the effects of collateral, if applicable. Lease terms include the effects of options to extend or terminate the lease when it is reasonably certain at commencement of the lease that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term reflecting single operating lease cost. The Company evaluates lease agreements to determine lease and non-lease components, which are accounted for separately.
15
Lease payments that depend on factors other than an index or rate are considered variable lease payments and are excluded from the operating lease assets and liabilities and are recognized as expense in the period in which the obligation is incurred. Lease payments include payments for common area maintenance, utilities such as electricity, heating and water, among others, and property taxes, and other similar payments paid to the landlord, which are treated as non-lease component.
The Company accounts for lease-related concessions in accordance with guidance in Topic 842, Leases, to determine, on a lease-by-lease basis, whether the concession provided by lessor should be accounted for as a lease modification.
The Company accounts for a modification as a separate contract when it grants an additional right of use not included in the original lease and the increase is commensurate with the standalone price for the additional right of use, adjusted for the circumstances of the particular contract. Modifications which are not accounted for as a separate contract are reassessed as of the effective date of the modification based on its modified terms and conditions and the facts and circumstances as of that date. Upon modification, the Company remeasures the lease liability to reflect changes to the remaining lease payments and discount rates and recognizes the amount of the remeasurement of the lease liability as an adjustment to the ROU assets. However, if the carrying amount of the ROU assets is reduced to zero as a result of modification, any remaining amount of the remeasurement is recognized as an expense in condensed consolidated statement of operations and comprehensive loss.
The Company reviews ROU assets for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable.
Comprehensive Loss
Comprehensive loss consists of net loss and other gains and losses affecting stockholders’ equity that, under GAAP, are excluded from net loss. Our other comprehensive loss represents foreign currency translation adjustment attributable to Indian operations and retirement benefits due to change in actuarial assumptions. Refer to Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss.
NOTE 3 – SEGMENT INFORMATION
The Company is focused on designing, manufacturing and marketing an advanced, next-generation and affordable surgical robotic system called the SSi Mantra, and the instruments and accessories used with SSi Mantra to perform a wide range of soft-tissue, robotically assisted surgeries. The Company is committed to accelerating access to surgical robotics technologies in all parts of the world and particularly in underserved regions through a comprehensive ecosystem of providing an affordable surgical robotic system, its related instruments and accessories backed up by clinical, field service and maintenance support also provided by the Company. The systems as well as instruments and accessories are primarily designed, developed and manufactured by the Company in its manufacturing facility located in India.
During the three months ended September 30, 2025,
and 2024, the Company’s revenue from within India accounted for
The Company’s Chief Executive Officer is
the Maker (“CODM”). The CODM utilizes the Company’s long-range plan, which includes product
development, technology refinement plans and long-range selling and financial models, as a key input to resource allocation.
16
Significant segment expenses within income from operations, as well as within net income / loss, include cost of revenue, research and development, and selling, general and administrative expenses, which are each separately presented on the Company’s Consolidated Statements of Operations. Other segment items within net income include interest and other income, net, and income tax expense.
The Company’s long-lived assets consist
primarily of property, plant and equipment. As of September 30, 2025 and December 31, 2024,
NOTE 4 – PROPERTY, PLANT AND EQUIPMENT, NET
The Company’s property, plant and equipment consisted of the following as of:
| September 30, 2025 | December 31, 2024 | |||||||
| Gross Amount | ||||||||
| Computer & peripheral | ||||||||
| Furniture | ||||||||
| Leasehold improvement | ||||||||
| Office equipment | ||||||||
| Pay Per Use Systems | ||||||||
| Plant and machinery | ||||||||
| Server & networking | ||||||||
| Vehicles | ||||||||
| Demo system | ||||||||
| Capital work in progress | ||||||||
| Accumulated depreciation | ( | ) | ( | ) | ||||
| Total | ||||||||
Depreciation expenses for the three months ended
September 30, 2025 and 2024 amounted to and $
Depreciation expenses for the nine months ended
September 30, 2025 and 2024 amounted to $
From its inventory, the Company determined to use six systems for demonstration purposes. As of September 30, 2025, five systems are situated in the Company’s premises while one system is situated at a partner’s location. Hence, these systems are recorded as property, plant and equipment in accordance with ASC 360.
NOTE 5 – RECAPITALIZATION
The Transaction
On April 14, 2023 (“Closing”), the Company consummated the acquisition of CardioVentures, Inc., a Delaware corporation (“CardioVentures”), pursuant to a Merger Agreement dated November 7, 2022 (the “Merger Agreement”). This agreement was executed among AVRA-SSI Merger Corporation, a wholly owned subsidiary of the Company (“Merger Sub”), CardioVentures, and Dr. Sudhir Srivastava, who, through his holding company, owned a controlling interest in CardioVentures.
At Closing, Merger Sub merged with and into CardioVentures (the “Merger”), with CardioVentures being determined as the accounting acquirer for financial reporting purposes in accordance with ASC 805. The transaction was accounted for as a recapitalization, with AVRA being treated as the Accounting Acquiree. This determination was based on several factors:
| ● | CardioVentures’ stockholders obtained the largest portion of voting rights in the post-combination company. |
| ● | The Board and management of the combined entity are primarily composed of individuals associated with CardioVentures. |
| ● | CardioVentures had a larger entity size based on historical operations, assets, revenues, and workforce. |
| ● | The ongoing operations, post-combination, are those of CardioVentures. |
Merger Consideration and Share Issuance:
As part of the Merger, holders of CardioVentures’ outstanding common stock, including certain parties who provided interim convertible
financing, were issued
17
Pursuant to the Merger Agreement, the holders
of CardioVentures’ common stock also received
| ● | Vote together with SSII common stock as a single class, except as required by law. |
| ● | Entitle holders to exercise |
| ● | Are not convertible into common stock, have no dividend rights, and carry a nominal liquidation preference. |
| ● | Include protective provisions requiring the majority vote of Series A Preferred Shares to amend their rights. |
| ● | Are subject to automatic redemption for nominal consideration if holders own less than |
Restructuring and Capital Contributions: Concurrent with the Merger:
| ● | The Company changed its name to “SS Innovations International, Inc.,” effected a |
| ● | Dr. Sudhir Srivastava, our Chief Executive Officer, through his holding company, assigned patents, trademarks, and other intellectual property related to its surgical robotic systems to a wholly owned subsidiary of SSII. |
| ● | Two investors, including a current director, provided interim financing during 2022, contributing $ |
Recapitalization Impact: As part of the
recapitalization, CardioVentures acquired the net assets of AVRA at fair value at Closing. The fair value of AVRA’s net assets was
assessed to be
NOTE 6 – ACCOUNTS RECEIVABLE, NET
Accounts receivable consisted of the following as of:
| September 30, 2025 | December 31, 2024 | |||||||
| Accounts receivable, net | ||||||||
| Accounts receivable, net (non-current) | ||||||||
Activity in the allowance for the credit losses for the three and nine months ended September 30, 2025 and 2024 was as follows:
| For the three months ended September 30, 2025 | For the three months ended September 30, 2024 | |||||||
| Balance at beginning of period | ||||||||
| Additions charged to expense | ||||||||
| Foreign currency translation adjustment | ( | ) | ( | ) | ||||
| Balance at end of period | ||||||||
| For the nine months ended September 30, 2025 | For the nine months ended September 30, 2024 | |||||||
| Balance at beginning of period | ||||||||
| Additions/(reversals) | ||||||||
| Foreign currency translation adjustment | ( | ) | ( | ) | ||||
| Balance at end of period | ||||||||
18
The Company performed an analysis of the trade
receivables related to SSI India and determined, based on the deferred payment terms of the contracts, that a $
Details of customers which accounted for 10% or more of total revenues during the three and nine months ended September 30, 2025, and September 30, 2024 and 10% or more of total accounts receivables as at September 30, 2025, and December 31, 2024.
| Percentage of revenue for the nine months ended |
Percentage of revenue for the three months ended |
Percentage of accounts receivables | ||||||||||||||||||||||
| September 30, 2025 |
September 30, 2024 |
September 30, 2025 |
September 30, 2024 |
September 30, 2025 |
September 30, 2024 |
|||||||||||||||||||
| Customer A | % | % | % | |||||||||||||||||||||
| Customer B | % | % | % | |||||||||||||||||||||
| Customer C | % | % | % | % | ||||||||||||||||||||
| Customer D | % | % | % | % | ||||||||||||||||||||
| Customer E | % | % | % | % | ||||||||||||||||||||
| Customer F | % | % | % | % | - | |||||||||||||||||||
| Customer G | % | % | % | % | % | % | ||||||||||||||||||
NOTE 7 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH
For the purpose of condensed consolidated statement of cash flows, cash, cash equivalents and restricted cash (Current) & (Non-Current) consisted of the following as of:
| September 30, 2025 | December 31, 2024 | |||||||||
| Cash and cash equivalents | ||||||||||
| Fixed Deposit | Lien Against Overdraft Facility | |||||||||
| Lien Against Letter of Credit | ||||||||||
| Lien Against Bank Guarantee | ||||||||||
| Lien Against Credit Card Facility | ||||||||||
| Restricted cash (Current) | ||||||||||
| Fixed Deposit | Lien Against Bank Guarantee | |||||||||
| Lien Against Credit Card Facility | ||||||||||
| Restricted cash (Non-current) | ||||||||||
| Total Cash, cash equivalents and restricted cash | ||||||||||
19
We have classified fixed deposits (FDs), which are subject to withdrawal restrictions, as Restricted cash. Additionally, time deposits with remaining maturity of over one year have been classified as non-current.
The Company has secured a bank overdraft facility from HDFC Bank, collateralized by fixed deposits held with HDFC Bank. This facility includes a withdrawal restriction tied to the fixed deposit. (Refer Note 11 – Bank Overdraft.)
NOTE 8 – PREPAID, CURRENT AND NON-CURRENT ASSETS
Prepaid, Current and Non-Current Assets consisted of the following as of:
| September 30, 2025 | December 31, 2024 | |||||||
| Balances from statutory authorities | ||||||||
| Prepaid expense-stock compensation current | ||||||||
| Security deposits | ||||||||
| Other prepaid-current assets | ||||||||
| Prepaid and other current assets | ||||||||
| Prepaid expense-stock compensation non current | ||||||||
| Security deposits | ||||||||
| Other prepaid-non current assets | ||||||||
| Prepaid and other non current assets | ||||||||
| Total prepaid, current and non current assets | ||||||||
Prepaid expenses – stock compensation represents unamortized portion of common stock granted to advisors for services to be rendered by them in future. (Refer Note 19 – Stock Compensation Expenses)
NOTE 9 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accounts payable and accrued expenses consisted of the following as of:
| September 30, 2025 | December 31, 2024 | |||||||
| Accounts payable | ||||||||
| Payable to statutory authorities | ||||||||
| Client liabilities | ||||||||
| Salary payable | ||||||||
| Other accrued liabilities | ||||||||
| Other accrued liabilities | ||||||||
| Provision for Gratuity Long term | ||||||||
| Other accrued liabilities | - | |||||||
| Other accrued liabilities- Non Current | ||||||||
| Total accounts payable, accrued current and non current expenses | ||||||||
Accounts payable at $
20
NOTE 10 – NOTES PAYABLE
In February 2024, the Company raised $
In April 2024, the Company raised $
In July 2024, the Company raised $
In October and November 2024, the Company raised
$
In December 2024, the Company raised $
In January 2025, the Company raised $
In February 2025, the Company paid $
In February 2025, the Company paid $
In February 2025, the Company converted three
In February 2025, the Company converted Convertible
Notes totaling $
In March 2025, the Company converted Convertible Notes totaling $
NOTE 11 – BANK OVERDRAFT FACILITY
Bank overdraft facility consisted of the following as of:
| September 30, 2025 | December 31, 2024 | |||||||
| HDFC Bank Ltd overdraft (with lien against fixed deposits) (OD1) | ||||||||
| HDFC Bank Ltd overdraft (OD2) | ||||||||
| Bank overdraft | ||||||||
21
The HDFC Bank overdraft facility (OD1), amounting
to $
HDFC Bank has sanctioned overdraft facilities subject to operational terms and conditions, including payment on demand, comprehensive insurance coverage against all risks of primary security, periodic inspections of the plant by the bank, and submission of monthly stock and financial records to the bank within 30 days after each month-end. Security for this facility includes current assets, plant and machinery, furniture and fixtures, computers, other moveable fixed assets and a personal guarantee of both Dr. Sudhir Srivastava and Dr. Vishwajyoti P Srivastava.
The cash credit facility is sanctioned at an interest
rate of
NOTE 12 – DEFERRED REVENUE
Contract liabilities (deferred revenue) consist of advance billings and billing in excess of revenues recognized. Deferred revenue also includes the amount for which services have been rendered but other conditions of revenue recognition are not met, for example, where the Company does not have an enforceable contract.
The revenues attributable to the warranty is recognized over the period to which it relates. During the three and nine months ended September 30, 2025, the Company sold 28 and 55 surgical robotic systems, respectively. The revenues attributable to warranty for the agreed warranty period in respect of each of the sales contract is deferred for recognition over the period to which it relates.
In case of systems sold on a deferred payment
basis, the present value of the invoiced system sales, realizable over the deferred payment period, is recognized as system sales. The
difference between the invoiced amount and its present value is adjusted (reduced) in the accounts receivable balance. This difference
is recorded as interest income under other income, with a corresponding impact on accounts receivable over the collection period of contract.
The Company recorded $
| September 30, 2025 | December 31, 2024 | |||||||
| Deferred revenue- beginning of period | ||||||||
| Additions | ||||||||
| Net changes in liability for pre-existing contracts | ||||||||
| Revenue recognized for system sales | ||||||||
| Revenue recognized for instrument sales | ||||||||
| Revenue recognized for warranty sales | ||||||||
| Deferred revenue- end of period | ||||||||
| Deferred revenue expected to be recognized in: | ||||||||
| One year or less | ||||||||
| More than one year | ||||||||
For the three months ended September 30, 2025 and 2024:
The following table disaggregates our revenue by major source as of:
| September 30, 2025 | September 30, 2024 | |||||||
| System sales | ||||||||
| Instruments sale | ||||||||
| Warranty sale | ||||||||
| Lease income | ||||||||
| Total revenue | ||||||||
22
Revenues for three months ended September 30, 2025 and 2024 by geographic region (determined based upon customer domicile), were as follows:
| September 30, 2025 | September 30, 2024 | |||||||
| India | ||||||||
| Iraq | ||||||||
| UAE | ||||||||
| Nepal | ||||||||
| Indonesia | ||||||||
For the nine months ended September 30, 2025 and 2024:
The following table disaggregates our revenue by major source as of:
| September 30, 2025 | September 30, 2024 | |||||||
| System sales | ||||||||
| Instruments sale | ||||||||
| Warranty sale | ||||||||
| Lease income | ||||||||
| Total revenue | ||||||||
Revenues for nine months ended September 30, 2025 and 2024 by geographic region (determined based upon customer domicile), were as follows:
| September 30, 2025 | September 30, 2024 | |||||||
| India | ||||||||
| Philippines | ||||||||
| Indonesia | ||||||||
| South America | ||||||||
| Iraq | ||||||||
| UAE | ||||||||
| Nepal | ||||||||
23
NOTE 13 – STOCKHOLDERS’ EQUITY
Common Stock
The Company is authorized to issue up to
As of September 30, 2025, there were
Preferred Stock
The Company is authorized to issue up to
As of September 30, 2025, there were
Common Stock issued at the time of Merger
At Closing of the Merger on April 14, 2023,
Common Stock issued post-Merger
On March 1, 2024, the Company issued
On August 31, 2024, the Company issued
On November 27, 2024, the Company issued
On November 27, 2024, the Company issued
On December 2, 2024, the Company issued
On February 12, 2025, the Company issued
On February 13, 2025, the Company issued
24
On February 20, 2025, the Company issued
On March 1, 2025, the Company issued
On March 31, 2025, the Company issued
On April 2, 2025, the Company issued
On April 30, 2025, the Company issued
On May 22, 2025, the Company issued
On May 28, 2025, the Company issued
On August 28, 2025, the Company issued
NOTE 14 – INVENTORY
Inventory consisted of the following as of:
| September 30, 2025 | December 31, 2024 | |||||||
| Raw materials (includes goods in transit $ | ||||||||
| Work-in-progress | ||||||||
| Finished goods | ||||||||
25
NOTE 15 – LEASES
The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates.
The following is a summary of operating lease assets and liabilities as of:
| Operating leases | September 30, 2025 | December 31, 2024 | ||||||
| Assets | ||||||||
| Right of use operating lease assets | ||||||||
| Liabilities | ||||||||
| Current portion of operating lease liabilities | ||||||||
| Non Current portion of operating lease liabilities | ||||||||
| Total lease liabilities | ||||||||
| Operating leases | September 30, 2025 | December 31, 2024 | ||||||
| Weighted average remaining lease terms (years) | ||||||||
| Ilabs Info Technology 3rd Floor | ||||||||
| Ilabs Info Technology 1st Floor | ||||||||
| Ilabs Info Technology Ground Floor | ||||||||
| Ilabs Info Technology Basement-3 | ||||||||
| Village Chhatarpur-1849-1852-Farm | ||||||||
| Weighted average discount rate | ||||||||
| Ilabs Info Technology 3rd Floor | % | % | ||||||
| Ilabs Info Technology 1st Floor | % | % | ||||||
| Ilabs Info Technology Ground Floor | % | % | ||||||
| Ilabs Info Technology Basement-3 | % | - | ||||||
| Village Chhatarpur-1849-1852-Farm | % | % | ||||||
Supplemental cash flow and other information related to leases are as follows:
| Nine months ended | ||||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Cash payments for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash outflows for operating leases | ||||||||
Maturities of lease liabilities as of September 30, 2025, were as follows:
| Fiscal year | Operating Leases Amount (in $) | |||
| 2025 | ||||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 and thereafter | ||||
| Total lease payment | ||||
| Less: Imputed Interest | ||||
| Present value of lease liabilities | ||||
NOTE 16 – INCOME TAX
The Company recorded an income tax expense of
$
The Company will continue to reassess its valuation allowance position quarterly and update the effective tax rate accordingly based on expected changes in the mix and level of earnings.
26
The components of income / (loss) before income taxes consist of the following:
| Nine months ended | ||||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Domestic | ( | ) | ( | ) | ||||
| Foreign | ( | ) | ||||||
| Total | ( | ) | ( | ) | ||||
Income tax expense/(benefit) consists of the following:
| For the nine months ended September 30, 2025 | For the nine months ended September 30, 2024 | |||||||
| Current Provision: | ||||||||
| Domestic | ||||||||
| Foreign | ||||||||
| Deferred Provision/(Benefit): | ||||||||
| Domestic | ||||||||
| Foreign | ( | ) | ||||||
| Income tax expense | ||||||||
Deferred income taxes recognized in OCI were as follows:
| For the nine months ended September 30, 2025 | For the nine months ended September 30, 2024 | |||||||
| Deferred taxes benefit / (expense) recognized on: | ||||||||
| Retirement benefits | ||||||||
| Total | ||||||||
The Company has federal and state net operating losses as of September 30, 2025 and December 31, 2024.
The Company’s U.S. operations continue to generate losses, and a full valuation allowance has been maintained against its U.S. federal and state deferred tax assets. As a result, no tax benefit has been recognized for U.S. losses in the current period.
Management has considered available positive and negative evidence, including forecasted taxable income, reversal of temporary differences, and tax planning strategies. Based on this assessment, deferred tax assets related to the Indian operations are considered realizable, and no valuation allowance has been recorded for those jurisdictions.
The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense. The Company had no accrual of interest and penalties on the Company’s balance sheets and has not recognized interest and penalties in the condensed consolidated statement of operations and comprehensive loss for the nine month period ended September 30, 2025, and September 30, 2024.
The Company is subject to taxation in the United States and India. The Company’s tax returns as filed have no pending examinations except for the Indian subsidiary which is under review with the Indian Income Tax Department for Assessment Year 2024-25.
27
The effective income tax rate differs from the amount computed by applying the income tax rate of India to Income/(Loss) before income taxes approximately as follows:
| Nine months ended | ||||||||
| September 30, 2025 |
September 30, 2024 |
|||||||
| Accounting loss before income tax | ( |
) | ( |
) | ||||
| Income tax expense/(benefit) at federal statutory rate at |
( |
) | ( |
) | ||||
| Foreign tax rate differential | ( |
) | ||||||
| US GAAP accounting difference over Indian jurisdiction profit* | ||||||||
| Non-deductible expenses | ( |
) | ||||||
| Excess tax benefit on depreciation | ( |
) | ||||||
| Excess tax benefit on security deposit | ||||||||
| Impact of unrecognized deferred tax asset on the loss of the year | ||||||||
| Income tax expense | ||||||||
| * |
The Company recorded an income tax expense of
$
The components of the deferred tax balances were as follows:
| September 30, 2025 | December 31, 2024 | |||||||
| Deferred tax assets: | ||||||||
| Net operating loss carry forwards | ||||||||
| Net operating loss | ||||||||
| Lease payments | ||||||||
| Credit loss reserve | ||||||||
| Others | ||||||||
| Valuation allowance | ( | ) | ( | ) | ||||
| Deferred tax assets | ||||||||
| Deferred tax liabilities: | ||||||||
| Depreciation and amortization | ||||||||
| Others | ||||||||
| Deferred tax liabilities | ||||||||
| Net deferred tax assets/liability | ||||||||
Deferred tax assets and liabilities are recognized
for future tax consequences attributable to temporary differences between the financial statement carrying values of assets and liabilities
and their respective tax bases and operating loss carry forwards. The Company performed an analysis of the realizability of deferred tax
assets as of September 30, 2025, and December 31, 2024, and recorded a valuation allowance of $
NOTE 17 – EMPLOYEE BENEFIT PLAN
The Company’s Gratuity Plan in India provides for a lump sum payment to employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities under this plan are determined by actuarial valuation using the projected unit credit method. Current service costs for these plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans, are recognized and amortized over the remaining period of service of the employees.
28
The Gratuity Plan is unfunded, and the Company does not make contributions to the plan assets.
The benefit obligation has been measured as of September 30, 2025, and December 31, 2024. The following table sets forth the activity and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods:
| September 30, 2025 | September 30, 2024 | |||||||
| Change in projected benefit obligation | ||||||||
| Projected benefit obligation as on beginning | ||||||||
| Service cost | ||||||||
| Interest cost | ||||||||
| Benefits paid | ||||||||
| Actuarial loss ^ | ||||||||
| Effect of exchange rate changes | ( | ) | ( | ) | ||||
| Projected benefit obligation at end | ||||||||
| Unfunded status in the end | ||||||||
| Unfunded amount recognized in consolidated balance sheets | ||||||||
| Non-current liability (included under other non-current liabilities) | ||||||||
| Current liability (included under accrued employee costs) | ||||||||
| Total accrued liability | ||||||||
| Accumulated benefit obligation at end | ||||||||
| ^ |
Components of net periodic benefit costs recognized in condensed consolidated statements of operations and comprehensive loss and actuarial loss reclassified from accumulated other comprehensive income (“AOCI”), were as follows:
| September 30, 2025 | September 30, 2024 | |||||||
| Service cost | ||||||||
| Interest cost | ||||||||
| Expected return on plan assets | ||||||||
| Amortization of actuarial loss, gross of tax | ||||||||
| Net gratuity cost | ||||||||
The components of retirement benefits included in AOCI, excluding tax effects, were as follows:
| September 30, 2025 | September 30, 2024 | |||||||
| Net actuarial loss / (gain) | ( | ) | ||||||
| Amount recognized in AOCI, excluding tax effects | ( | ) | ||||||
The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were:
| September 30, 2025 | September 30, 2024 | |||||||
| Discount rate | % | % | ||||||
| Rate of increase in compensation levels | % | % | ||||||
| Expected long-term rate of return on plan assets per annum | ||||||||
The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are either based on current market yields on government securities or yields on government securities adjusted for a suitable risk premium, if available.
29
Expected benefit payments as of September 30, 2025
| September 30, 2025 | ||||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030-2034 |
NOTE 18 – FAIR VALUE MEASUREMENT – FINANCIAL INSTRUMENTS
Assets and liabilities recorded at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are:
| ● | Level 1: observable inputs such as quoted prices in active markets. |
| ● | Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and |
| ● | Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions. |
The Company’s financial assets, which are set out below in the table, are measured at fair value by considering the level III inputs. The company does not have financial assets which are measured using Level I or Level II inputs.
Carrying value and fair value of Level III Financial assets and liabilities:
| Carrying Value | Fair Value | |||||||||||||||
| September 30, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 | |||||||||||||
| Financial Assets | ||||||||||||||||
| Account receivables, net (1) | ||||||||||||||||
| Other non-current financial assets (2) | ||||||||||||||||
| Total | ||||||||||||||||
| Financial Liabilities | ||||||||||||||||
| Lease liabilities (3) | ||||||||||||||||
| Total | ||||||||||||||||
| (1) |
| (2) |
| (3) |
The Company has assessed that the financial instruments that are not carried at fair value consist primarily of cash and cash equivalents, restricted cash, accounts receivable, prepaid and other current assets, note payable, Bank overdraft facility and account payable for which fair values approximate their carrying amounts due to the short-term maturities of these instruments.
30
NOTE 19 – STOCK COMPENSATION EXPENSES
Stock Options issued to Employees: The
Company grants shares of the Company’s common stock, par value $
Restricted Stock Units (“RSUs”):
issued to Employees: The Company grants restricted shares of the Company’s common stock, $
Stock Options issued to Doctors/Proctors/Advisors (“Advisors”): The Company issues shares of the Company’s common stock (“Advisory Shares”) to retain and compensate certain Advisors for performing services for the Company and in exchange for the compensation, which is issued in a phased manner as determined by the company. The “Services” include but are not limited to (a) providing proctoring and medical advisory services, (b) advising the Company on the development of surgical robotics procedures and improvements in design and technology (c) participation in case of observation and performance of live surgeries, and (d) disseminating information about the Company’s products in various scientific meetings and surgical robotic conferences globally (e) investor’s digital marketing support. The Company issues such Advisory Shares in a phased manner commensurate with the period over which the services are to be performed, as determined by the Company.
Stock Options
Stock options activity for the period ended September 30, 2025, was as follows:
| Number of shares subject to options | Weighted average grant date fair value per share | |||||||
| Unvested balance as of December 31, 2024 | $ | |||||||
| Granted | ||||||||
| Vested | ||||||||
| Forfeited | ||||||||
| Unvested balance as of September 30, 2025 | $ | |||||||
| Number of shares subject to options | Weighted average grant date fair value per share | |||||||
| Exercisable balance as of September 30, 2025 | $ | |||||||
During the nine months ended September 30, 2025,
31
RSUs
RSU activity for the period ended September 30, 2025, was as follows:
| Number of shares subject to RSAs | Weighted average grant date fair value per share | |||||||
| Unvested balance as of December 31, 2024 | $ | |||||||
| Granted | ||||||||
| Vested | ||||||||
| Forfeited | $ | |||||||
| Unvested balance as of September 30, 2025 | $ | |||||||
During the nine months ended September 30, 2025, no RSAs are vested. Further, there were no RSAs issued during the nine months ended September 30, 2025.
Advisory Shares
Common stock issued to Advisors as advisory shares during the period as follows:
| Grant dates | Fair value on grant date |
Unvested shares in the beginning | Shares granted during the year |
Shares vested during the period |
Unvested shares at the end of the period | |||||||||||||||
| 31-Oct-23 | ||||||||||||||||||||
| 31-Oct-23 | ||||||||||||||||||||
| 31-Oct-23 | ||||||||||||||||||||
| 31-Oct-23 | ||||||||||||||||||||
| 15-Apr-25 | ||||||||||||||||||||
| 30-Apr-25 | ||||||||||||||||||||
| 16-May-25 | ||||||||||||||||||||
During the nine months ended September 30, 2025,
The aggregate vesting date fair value of advisory shares vested was
$
32
Stock compensation expenses
During the nine months ended September 30, 2025 and September 30, 2024,
the Company has recorded share compensation expense of $
| September 30, 2025 | September 30, 2024 | |||||||
| Stock options | ||||||||
| Restricted stock units (RSU) | ||||||||
| Advisory shares | ||||||||
| Total stock compensation expenses | ||||||||
Stock option model and assumptions
The Black-Scholes-Merton option pricing model
is used to estimate the fair value of stock options and RSU granted under the Company’s share based compensation plans and the rights
to acquire stock granted under the stock options plans.
| Nine months ended September 30, 2025 | ||||||||||||
| Grant date | Stock Options February 13, 2024 | Stock Options November 27, 2023 | Restricted stock awards November 27, 2023 | |||||||||
| Fair value on grant date | $ | $ | $ | |||||||||
| Risk free interest rate | % | % | % | |||||||||
| Expected volatility | % | % | % | |||||||||
| Exercise prices | $ | $ | ||||||||||
| Share price on the grant date | $ | $ | $ | |||||||||
| Expected term of vesting | ||||||||||||
As share-based compensation expense recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss during the nine months ended September 30 2025, and September 30, 2024, is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, if any.
As of September 30, 2025, there was $
33
NOTE 20 – RELATED PARTY
The details of transactions with the related parties for the nine months ended September 30, 2025 and September 30, 2024 and balances outstanding as on September 30, 2025 and December 31, 2024, are as follows:
| Particulars | For the nine months ended Sept 30, 2025 | For the nine months ended Sept 30, 2024 | ||||||
| : | ||||||||
| Expenses incurred on behalf of affiliates | ||||||||
| Srivastava Robotic Surgery Pvt Ltd | ||||||||
| SS International Centre for Robotics Surgery Pvt Ltd | ||||||||
| Sudhir Srivastava Medical Innovations Pvt Ltd | ||||||||
| Telegnosis Private Limited | ||||||||
| Sudhir Prem Srivastava, M.D. | ||||||||
| Expenses incurred on behalf of the Company | ||||||||
| Sudhir Prem Srivastava, M.D. | ||||||||
| Barry F. Cohen | ||||||||
| Dr. Frederic H Moll | ||||||||
| Dr. S.P. Somashekhar | ||||||||
| 2016 Stock Incentive Plans Expenses/(Reversal) | ||||||||
| Anup Sethi | ( | ) | ||||||
| Barry F. Cohen | ||||||||
| Dr. S.P. Somashekhar | ||||||||
| Sudhir Prem Srivastava, M.D. | ||||||||
| Vishwajyoti P. Srivastava, M.D | ||||||||
| Consultancy charges and other perquisites | ||||||||
| Anup Sethi# | ||||||||
| Barry F. Cohen | ||||||||
| Vishwajyoti P. Srivastava, M.D | ||||||||
| Sudhir Prem Srivastava | ||||||||
| Arvind Palaniappan# | ||||||||
| Naveen Kumar Amar# | ||||||||
| Proceeds from notes issued | ||||||||
| Sushruta Pvt Ltd. | ||||||||
| Interest accrued on notes | ||||||||
| Sushruta Private Limited | ||||||||
| Conversion of notes into common stock | ||||||||
| Sushruta Private Limited | ||||||||
34
Balances outstanding at period and year end:
| Particulars | As on Sept 30, 2025 | As on December 31, 2024 | ||||||
| Balance receivable / (payable) | ||||||||
| Accrued expenses and other current liabilities: | ||||||||
| Barry F. Cohen | ( | ) | ( | ) | ||||
| Sushruta Pvt Ltd. | ( | ) | ||||||
| Vishwajyoti P. Srivastava, M.D | ( | ) | ||||||
| Naveen Kumar Amar# | ( | ) | ||||||
| Prepaid & Other current assets: | ||||||||
| Cardio Bahamas* | ( | ) | ( | ) | ||||
| Srivastava Robotic Surgery Pvt Ltd | ||||||||
| SS International Centre for Robotics Surgery Pvt Ltd | ||||||||
| SSI PTE Singapore* | ( | ) | ( | ) | ||||
| Sudhir Prem Srivastava, M.D.* | ||||||||
| Sudhir Srivastava Medical Innovations Pvt Ltd | ||||||||
| Sushruta Pvt Ltd | ||||||||
| Telegnosis Private Limited | ||||||||
| Notes Payable: | ||||||||
| Sushruta Private Limited | ( | ) | ||||||
| * |
| # | |
NOTE 21 – COMMITMENTS AND CONTINGENCIES
Other Commitments
The Company, through its Indian subsidiary, occupies office, manufacturing,
and assembly space in Gurugram, Haryana (India) under a lease agreement entered into in March 2021, with monthly payments of $
35
Contingencies
The Company’s international transactions with its Associated Enterprises (AEs) were subject to transfer pricing regulations under the Income-tax Act, 1961. The case for the assessment year 2021-22 under consideration was selected for scrutiny and referred to the Transfer Pricing Officer (TPO).
The TPO proposed a Transfer Pricing adjustment
of $
| ● | Rejection of the segmental margins computed by the Company and adoption of entity-level margins; and |
| ● | Modification of the filters applied by the Company in the selection of comparable companies. |
Based on the TPO’s findings, the Assessing
Officer (AO), vide draft assessment order dated 29 November 2023 under section 144C(1) of the Income-tax Act proposed an addition of $
The Company filed its objections before the Dispute
Resolution Panel (DRP). The DRP, vide its directions dated 28 August 2024, granted partial relief of $
Subsequently, the Company has filed an appeal before the Income Tax Appellate Tribunal (ITAT) on the remaining disputed issues. As informed by the Management, the matter is pending adjudication before the ITAT. The Company believes that its position will more likely than not be sustained upon final examination by the tax authorities and accordingly has not accrued any liabilities with respect to these matters in its consolidated financial statements.
NOTE 22 – SUBSEQUENT EVENTS
In October 2025, the Company issued
36
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Introduction
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 further consolidated our installed base of SSi Mantra in various parts of India and also expanded our presence in the global markets.
Our financial performance is largely driven by increasing awareness of the benefits of robotically assisted surgery, reduced learning curves for robotic surgeons and the affordability and accessibility of surgical robotic technology. 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.
Our manufacturing operations being based in India derive significant operating cost advantages in terms of availability of quality and cost-effective fabrication/3D printing solutions, 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 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.
Results of Operations
Introduction
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.
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Balance Sheet Data
The following table provides selected balance sheet data for the Company as of:
| September 30, 2025 | December 31, 2024 | |||||||
| Cash | 5,681,657 | 466,500 | ||||||
| Restricted cash** | 6,357,590 | 6,157,035 | ||||||
| Total Assets | 69,577,027 | 42,385,213 | ||||||
| Total Liabilities | 29,927,721 | 28,928,110 | ||||||
| Total liabilities and stockholders’ equity | 69,577,027 | 42,385,213 | ||||||
| ** | 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, 2025 | September 30, 2024 | |||||||
| Total Revenue | 12,829,349 | 4,386,516 | ||||||
| Cost of revenue | (6,664,413 | ) | (2,069,109 | ) | ||||
| Gross profit | 6,164,936 | 2,317,407 | ||||||
| Research & development expense | 786,319 | 442,839 | ||||||
| Stock compensation expense | 2,095,163 | 2,451,355 | ||||||
| Depreciation and amortization expense | 297,173 | 119,502 | ||||||
| Selling, general and administrative expense | 4,821,552 | 2,508,479 | ||||||
| Loss from operations | (1,835,271 | ) | (3,204,768 | ) | ||||
| Other income (expenses) | (35,634 | ) | (40,715 | ) | ||||
| Income tax expense | 1,847,059 | - | ||||||
| Net loss | (3,717,964 | ) | (3,245,483 | ) | ||||
Total Revenue. 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 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 September 30, 2025, as compared to the three months ended September 30, 2024.
Gross profit. 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. 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.
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Research and development expense. Research 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.
Stock 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. We 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. We 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 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.
Other income/expenses, net. We incurred 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 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.
Net Loss. 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, 2025 | September 30, 2024 | |||||||
| Total Revenue | 27,950,264 | 12,533,335 | ||||||
| Cost of revenue | (14,783,062 | ) | (8,049,960 | ) | ||||
| Gross profit | 13,167,202 | 4,483,375 | ||||||
| Research & development expense | 2,295,014 | 1,729,834 | ||||||
| Stock compensation expense | 6,104,670 | 12,003,897 | ||||||
| Depreciation and amortization expense | 766,416 | 290,079 | ||||||
| Selling, general and administrative expense | 11,460,139 | 7,596,841 | ||||||
| Loss from operations | (7,459,037 | ) | (17,137,276 | ) | ||||
| Other income (expenses) | 3,817 | (90,530 | ) | |||||
| Income tax expense | 2,200,788 | - | ||||||
| Net loss | (9,656,008 | ) | (17,227,806 | ) | ||||
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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 2024 period.
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. Research 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. We had stock compensation expense of $6,104,670 and $12,003,897 during nine months ended September 30, 2025 and September 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 period.
Depreciation and amortization expense. We 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 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 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.
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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 30, 2024. 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, 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.
Net Loss. 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. The 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
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.
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.
Dr. 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. 2025.
Each tranche of financing provided by Dr. Srivastava 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.
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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. 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. These factors raise a substantial doubt about the Company’s ability to continue as a going concern.
| For the nine months ended | ||||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Net cash provided by operating activities: | ||||||||
| Net loss | (9,656,008 | ) | (17,227,806 | ) | ||||
| Non-cash adjustments | 7,431,442 | 13,528,234 | ||||||
| Change in operating assets and liabilities | (14,798,851 | ) | (2,541,697 | ) | ||||
| Net cash used in operating activities | (17,023,417 | ) | (6,241,269 | ) | ||||
| Net cash used in investing activities | (1,944,527 | ) | (536,337 | ) | ||||
| Net cash provided by financing activities | 24,793,391 | 6,014,946 | ||||||
| Net change in cash | 5,825,447 | (762,660 | ) | |||||
| Effect of exchange rate on cash | (409,735 | ) | (172,923 | ) | ||||
| Cash at beginning of year | 6,623,535 | 7,087,845 | ||||||
| Cash at end of year | 12,039,247 | 6,152,262 | ||||||
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, 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 expense. 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.
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Cash Flows from Investing Activities
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 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.
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. GAAP”). 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.”
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.
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. Future events may not develop exactly as forecasted and estimates routinely require adjustment.
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Stock Compensation Expense
Under the fair value recognition provisions of ASC Topic 718, Compensation-Stock Compensation, cost is measured at the grant date based on the fair value of the award and is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period.
Determining the fair value of stock-based awards at the grant date requires significant judgment, including estimating the expected term over which the stock awards will be outstanding before they are exercised and the expected volatility of our stock.
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 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. 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
Our system sale arrangements contain multiple products and services, including system, accessories, instruments and services. 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 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.
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.
Off-Balance Sheet Arrangements
There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Not applicable.
Item 4. Controls and Procedures.
Disclosure Controls and Procedures
Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures and internal control over financial reporting, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of September 30, 2025.
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To ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Securities and Exchange Commission, including to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Based on the evaluation performed as of September 30, 2025, as a result of the material weaknesses in internal control over financial reporting that are described below in Management’s Report on Internal Control Over Financial Reporting, our Chief Executive Officer and Chief Financial Officer determined that our disclosure controls and procedures were not effective as of such date in that:
| ● | We failed to design adequate controls and procedures to provide reasonable assurance that U.S. GAAP was being properly applied to the matters resulting into the restatement of our quarterly financial statements, including recognition of revenue in case of deferred payment sales, recognition of right of use of certain assets and lease liabilities and functional and other classifications, also leading to certain accounting errors as described in details in the restatement notes as included in the respective amended quarterly financial statements. |
| ● | We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act. |
| ● | We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. |
Remediation Plan
The Company has been addressing and remediating these material weaknesses with the support and assistance of the accounting and financial staff employed by our Indian operating subsidiary. We have enhanced the review process for significant transactions to ensure proper accounting treatment under applicable guidelines and have engaged the external experts to provide guidance to the Company staff in the areas of financial reporting, internal controls, and enterprise risk management and assist it in the application of accounting principles to complex transactions. This external expert group is also helping the Company in strengthening its existing internal controls, policies and Standard Operating Procedures (“SOPs”) in all the major functional areas.
In addition, we have also engaged services of external experts in the field of designing, development and implementation of a comprehensive cloud-based ERP system. The ERP implementation process involves a detailed process study of each of the business functions and engagement with their respective process owners, identifying their linkages with other business functions and designing report formats, data sourcing and customizing the ERP system and training of the respective teams to meet the business data flow and reporting requirements of each business function. Post completion of roll out of all the functional modules under this new cloud-based ERP system which is designed to integrate all business functions within the accounting and financial department would help us in further addressing the abovementioned weaknesses.
Our Chief Executive Officer and Chief Financial Officer do not expect that our disclosure controls or internal controls will prevent all errors and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of any control system is subject to resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the fact that judgments in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Changes in Internal Controls Over Financial Reporting
Except for the remediation efforts described above, there were no changes in our internal controls over financial reporting that occurred during the fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
In addition to matters which have been reported in the Company’s previous periodic filings under the Securities Exchange Act of 1934, as amended, from time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in any such matter may harm the Company’s business.
Item 1A. Risk Factors.
Not Applicable.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
On August 28, 2025, the Company issued 4,000 shares of common stock to an advisor in exchange for advisory services to be rendered over a 5-year period. The total value of such services is $43,560. The value of services is calculated at the fair market value of shares as of the date of the advisory services contract.
The shares were issued pursuant to the exemption from registration afforded by Section 4(a)(2) under the Securities Act of 1933, as amended.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable
Item 5. Other Information.
Item 6. Exhibits.
| Exhibit No. | Description of Exhibit | |
| 31.1 | Section 302 Certification – Chief Executive Officer(1) | |
| 31.2 | Section 302 Certification – Chief Financial Officer(1) | |
| 32.1 | Section 906 Certification – Chief Executive Officer(1) | |
| 32.2 | Section 906 Certification – Chief Financial Officer(1) | |
| 101.INS* | Inline XBRL Instance Document | |
| 101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
| (1) | Filed herewith. |
| * | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under those sections. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Dated: October 28, 2025 | SS INNOVATIONS INTERNATIONAL, INC. | |
| By: | /s/ Naveen Kumar Amar | |
| Naveen Kumar Amar | ||
| Chief Financial Officer | ||
| (Principal Financial and Accounting Officer) | ||
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Exhibit 31.1
CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Sudhir Prem Srivastava, M.D., Chairman of the Board and Chief Executive Officer of SS Innovations International, Inc., a Florida corporation (the “Registrant”), certify that:
1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, of the Registrant;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. The other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Dated: October 28, 2025
| SS INNOVATIONS INTERNATIONAL, INC. | ||
| By: | /s/ Sudhir Prem Srivastava | |
| Sudhir Prem Srivastava, M.D. Chairman of the Board and Chief Executive Officer | ||
| (Principal Executive Officer) | ||
Exhibit 31.2
CERTIFICATION OF THE CHIEF FINANCIAL OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Naveen Kumar Amar., Chief Financial Officer of SS Innovations International, Inc., a Florida corporation (the “Registrant”), certify that:
1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, of the Registrant;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. The other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Dated: October 28, 2025 | ||
| SS INNOVATIONS INTERNATIONAL, INC. | ||
| By: | /s/ Naveen Kumar Amar | |
| Naveen Kumar Amar Chief Financial Officer | ||
| (Principal Financial and Accounting Officer) | ||
Exhibit 32.1
CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of SS Innovations International, Inc., a Florida corporation (the “Company”) for the quarter ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Sudhir Prem Srivastava, M.D., the Chairman of the Board and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:
| 1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
| Dated: October 28, 2025 | SS INNOVATIONS INTERNATIONAL, INC. | |
| By: | /s/ Sudhir Prem Srivastava | |
| Sudhir Prem Srivastava, M.D. Chief Executive Officer | ||
| (Principal Executive Officer) | ||
Exhibit 32.2
CERTIFICATION OF THE CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of SS Innovations International, Inc., a Florida corporation (the “Company”) for the quarter ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Naveen Kumar Amar, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:
| 1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
| Dated: October 28, 2025 | SS INNOVATIONS INTERNATIONAL, INC. | |
| By: | /s/ Naveen Kumar Amar | |
|
Naveen Kumar Amar Chief Financial Officer | ||
| (Principal Financial and Accounting Officer) | ||