On February 16, 2023, Asensus Surgical, Inc. announced that it had entered into a Memorandum of Understanding ("MoU") with KARL STORZ VentureONE Pte. Ltd. ("KARL STORZ") to collaborate on developing next-generation instrumentation and an agreement in which KARL STORZ intends to sell the Company's Intelligent Surgical Unit ("ISU") as a standalone device. The parties had intended to finalize the definitive agreements within 90 days.

As of the date of this current report, the Company and KARL STORZ have not reached agreement on final terms of a definitive agreement. The timeline to sign a definitive agreement is uncertain. The Company continues to pursue various collaboration opportunities with other major players in the imaging, visualization and digital surgery space to execute on its strategic plan, including commercialization of a stand-alone ISU.