<PAGE>   1



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                                   (MARK ONE)

     [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934 FOR THE PERIOD ENDED MARCH 31, 2000

                                                                             .

     [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO
                                 ______________.

                         COMMISSION FILE NUMBER 1-12471

                        INTEGRATED SURGICAL SYSTEMS, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

           DELAWARE                                     68-0232575
(STATE OR OTHER JURISDICTION OF                        (I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION)                        IDENTIFICATION NO.)
                            1850 RESEARCH PARK DRIVE

    DAVIS, CA                                                    95616-4884
  (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                       (ZIP CODE)

                                  530-792-2600
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

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 Act of 1934 during the
preceding 12 months (or for such shorter periods that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes x No ___

                Applicable Only to Issuers Involved in Bankruptcy
                  Proceedings During the Preceding Five Years

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by the court. Yes ___ No ___

                      Applicable Only to Corporate Issuers

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.

              Common Stock $.01 Par Value - 16,898,460 shares as of May 1, 2000



                                       2
<PAGE>   2



                        INTEGRATED SURGICAL SYSTEMS, INC.

                                      Index

Part I.  Financial Information

Item 1.  Financial Statements (Unaudited)

     Consolidated Balance Sheet - March 31, 2000
     Consolidated Statements of Operations - Three months ended
     March 31, 2000 and 1999

     Consolidated Statements of Cash Flows - Three months ended
     March 31, 2000 and 1999

     Notes to Consolidated Financial Statements - March 31, 2000

Item 2.  Management's Discussion and Analysis or Plan of Operation

Part II. Other Information

Item 2.  Changes in Securities and Use of Proceeds

Item 6.  Exhibits and Reports on Form 8-K

Signatures



                                       3
<PAGE>   3


PART I. FINANCIAL INFORMATION
        ITEM 1. FINANCIAL STATEMENTS




                        INTEGRATED SURGICAL SYSTEMS, INC.
                           CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
<TABLE>
<CAPTION>

ASSETS                                                                                                      March 31, 2000
Current Assets:                                                                                               (unaudited)
<S>                                                                                                        <C>

  Cash and cash equivalents                                                                                   $1,026,799
  Accounts receivable less allowance for doubtful accounts of $328,522                                           851,098
  Inventory                                                                                                    3,875,063
  Other current assets                                                                                           811,842
                                                                                                              -------------
Total current assets                                                                                           6,564,801

Property and equipment, net                                                                                   $  819,643
Leased equipment, net                                                                                            535,692
Long-term net investment in sales type leases                                                                    341,462
Intangible assets, net                                                                                         1,966,178
Other assets                                                                                                      12,449
                                                                                                             --------------
Total Assets                                                                                                 $10,240,225
                                                                                                             ==============
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

  Accounts payable                                                                                           $ 1,363,752
  Value-added taxes payable                                                                                       41,669
  Accrued payroll and related expenses                                                                           390,755
  Customer deposits                                                                                            1,887,246
  Accrued product retrofit costs                                                                                 207,953
  Current portion of bank loans                                                                                   89,813
  Other current liabilities                                                                                      498,293
                                                                                                              -------------
Total current liabilities                                                                                     $4,479,481

Bank loans, long-term                                                                                             46,364
Note payable                                                                                                     145,900
Commitments and Contingencies                                                                                          0

Stockholders' equity:

  Convertible preferred stock, $0.01 par value
  1,000,000 shares authorized; 734 shares issued
  and outstanding                                                                                                      7
  ($734,000 aggregate liquidation value)
  Common stock, $0.01 par value, 50,000,000 shares
</TABLE>


                                       4
<PAGE>   4

<TABLE>
<CAPTION>


<S>                                                                                                             <C>
    authorized; 16,884,048 shares issued and outstanding .                                                           168,840
    Additional paid-in capital ...........................                                                        57,090,939
    Deferred stock compensation ..........................                                                            (7,884)
    Accumulated other comprehensive loss .................                                                          (570,192)
    Accumulated deficit ..................................                                                       (51,113,230)
                                                                                                                 ---------------
Total stockholders' equity                                                                                         5,568,480
                                                                                                                 ---------------
Total liabilities and stockholder's equity ................................                                      $10,240,225
                                                                                                                 ===============

</TABLE>



                 See notes to consolidated financial statements.



                                       5
<PAGE>   5



                        INTEGRATED SURGICAL SYSTEMS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                         THREE MONTHS ENDED
                                                                                                              MARCH 31,
                                                                                                  --------------------------------
                                                                                                     2000                  1999
                                                                                                  --------------------------------
<S>                                                                                               <C>                 <C>
Net Sales                                                                                           $730,144           $ 2,286,723
Cost of Sales                                                                                        342,340             1,105,379
                                                                                                  -------------       ------------
 Gross Margin                                                                                        387,804             1,181,344
Operating expenses:
 Selling, general and administrative                                                               1,114,819             1,591,900
 Research and development                                                                          1,747,393             1,629,706
                                                                                                  -------------       ------------
Total Operating Expenses                                                                           2,862,212             3,221,606

Other income (expense):
 Interest income                                                                                      19,550                37,128
 Other                                                                                              (176,399)             (288,187)
                                                                                                  -------------       ------------
Loss before provision for income taxes                                                            (2,631,257)           (2,291,321)
Provision for income taxes                                                                             9,000                14,694
                                                                                                  -------------       ------------
Net loss                                                                                          ( 2,640,257)          (2,306,015)

Preferred stock accretion                                                                          (2,671,993)            (244,638)
                                                                                                  -------------       ------------
Net loss applicable to common stockholders                                                        $(5,312,250)         $(2,550,653)
                                                                                                  =============        ============

Basic net loss per common share                                                                        $(0.34)             $ (0.45)

Shares used in computing basic net loss
 per-share                                                                                         15,577,822            5,675,744
</TABLE>

See notes to consolidated financial statements

                                       6
<PAGE>   6



                        INTEGRATED SURGICAL SYSTEMS, INC.
                      Consolidated Statements of Cash Flows
                Increase (Decrease) in Cash and Cash Equivalents
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                                                    THREE MONTHS ENDED MARCH 31
                                                                                       2000                  1999
                                                                                    --------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                                <C>                   <C>

Net loss                                                                            ($2,640,257)          (2,306,015)

Adjustment to reconcile net loss to net cash used in
 operating activities:
   Depreciation                                                                         149,333              231,347
   Amortization of intangible assets                                                    209,760              209,760
   Unrealized gain on securities                                                                              14,683
   Stock compensation                                                                   111,652               46,190
Changes in operating assets and liabilities
      Accounts Receivable                                                              (282,033)             205,292
      Inventory                                                                        (612,920)            (707,042)
      Other current assets                                                             (277,255)              16,774
      Accounts payable                                                                 (262,565)           1,595,756
      Value added taxes payable                                                         (14,642)             174,752
      Accrued payroll and related expenses                                               (3,913)              59,053
      Customer deposits                                                                 867,250              442,008
      Other current liabilities                                                          37,519              (43,361)
      Note Payable                                                                         -                 (11,360)
                                                                                     --------------------------------
Net cash used in operating activities                                                (2,718,071)             (72,163)
                                                                                     --------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES

Investment in marketable securities                                                        -                 (17,083)
Net investments in sales type leases                                                       -                (366,273)
Principal payments received on sales type leases                                         86,917
Purchases of property and equipment                                                     (80,530)            (215,555)
 (Increase) decrease in other assets                                                       -                     109
                                                                                     --------------------------------
Net cash provided by (used in) investing activities                                       6,387             (598,802)
                                                                                     --------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds (payments) bank loans                                                             -                  705,257
Payments on bank loans                                                                  (19,612)                 -
Proceeds from issuance of preferred stock                                             1,878,775               929,101
Redemption of Series E preferred stock                                               (1,185,000)                 -
Proceeds from exercise of stock options                                                  30,683                 1,385
                                                                                     --------------------------------
Net cash provided by (used in) financing activities                                     704,846             1,635,743

Effect of exchange rate changes on cash and cash equivalents                            115,621              (332,128)
                                                                                     --------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                 (1,891,218)              632,650
Cash and cash equivalents at beginning of period                                      2,918,016               223,581
                                                                                     --------------------------------
Cash and cash equivalents at end of period                                           $1,026,799              $856,231
                                                                                     ================================
</TABLE>

                See notes to consolidated financial statements.



                                       7
<PAGE>   7



                        INTEGRATED SURGICAL SYSTEMS, INC.

Notes to Consolidated Financial Statements (unaudited)

March 31, 2000
NOTE A - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB. Accordingly,
they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring adjustments)
considered necessary for a fair presentation have been included. Operating
results for the three-month period ended March 31, 2000 are not necessarily
indicative of the results that may be expected for the year ended December 31,
2000. For further information, refer to the consolidated financial statements
and footnotes thereto included in Integrated Surgical Systems, Inc.'s annual
report on Form 10-KSB and Form 10-KSB/A for the year ended December 31, 1999.

In December, 1999, the Securities and Exchange Commission staff issued Staff
Accounting Bulletin (SAB) No. 101, Revenue Recognition in Financial Statements.
The SAB states that all registrants are expected to apply the accounting and
disclosures described in it. The SEC staff, however, will not object if
registrants that have not applied this accounting do not restate prior
financial statements provided they report a change in accounting principle in
accordance with APB Opinion No. 20, Accounting Changes, by cumulative catch-up
adjustment no later than the second fiscal quarter of the fiscal year beginning
after December 15, 1999. The Company is currently evaluating the impact, if
any, of SAB 101 on its financial statements.

NOTE B - INVENTORIES

The components of inventory consist of the following:

<TABLE>
<CAPTION>

                                     March 31, 2000
            <S>                 <C>

             Raw Materials            $1,423,461
             Work in process             691,913
             Finished goods            1,759,689
                                     -------------
                                      $3,875,063
                                     =============
</TABLE>




                                       8
<PAGE>   8


NOTE C - CONVERTIBLE PREFERRED STOCK

In February, 2000, the Company received net proceeds of approximately
$1,880,000 from the sale of 2,000 shares of Series F Convertible Preferred
Stock ("Series F Preferred Stock") and warrants ("Warrants") to purchase 12,500
shares of common stock ("Common Stock"), par value $.01 per share.

The Series F Preferred Stock is convertible (the "Beneficial Conversion
Feature") into shares of Common Stock, at the option of the holder, subject to
certain limitations, discussed below. The number of shares of Common Stock
issuable upon conversion of the Series F Preferred Stock is equal to the
quotient of (x) the product of $1,000 (the stated value of each share of Series
F Preferred Stock) and the number of shares of Series F Preferred Stock to be
converted and (y) 85% of the lowest sale price of the Common Stock on the Nasdaq
SmallCap Market during the five trading days preceding the date of conversion
(the "Market Price"), but in no event more than $1.22 (the "Conversion Price").

The Company may require holders to convert all (but not less than all) of the
Series F Preferred Stock at any time after February 8, 2003, or buy out all
outstanding shares, at the then Conversion Price.

The value assigned to the Beneficial Conversion Feature, as determined using the
quoted market price of the Company's Common Stock on the date the Series F
Preferred Stock was sold, amounted to approximately $2,652,000, which
represents a discount to the value of the Series F Preferred Stock (the
"Discount".) The Discount was charged against income in February 2000.

Holders of Series F Preferred Stock are not entitled to dividends and have no
voting rights, unless required by law or with respect to certain matters
relating to the Series F Preferred Stock.

The Company may redeem the Series F Preferred Stock upon written notice to the
holders of the Series F Preferred Stock at any time after the earlier of August
8, 2000 and the closing of a registered secondary offering of equity
securities, at a redemption price equal to the greater of $1,500 per share and
the Market Price of the Shares of Common Stock into which such Series F
Preferred Stock could have been converted on the date of the notice of
redemption.

The Warrants are exercisable at any time during the period commencing August 8,
2000 and ending August 8, 2003, at an exercise price of $2.375, subject to
adjustment. The Conversion Price and the number of shares of Common Stock
issuable upon conversion are subject to adjustment based upon certain future
events.

NOTE D - NET LOSS PER SHARE

As of March 31, 2000, outstanding options to purchase 1,867,113 shares of Common
Stock (with exercise prices ranging from $0.07 to $8.63) and outstanding
warrants to purchase 18,964,148 shares of Common Stock (with exercise prices
ranging from $0.01 to $4.39) could potentially dilute basic earnings per share
in the future and have not been included in the computation of diluted net loss
per share because to do so would have been antidilutive for the periods
presented.

NOTE E - ACCUMULATED OTHER COMPREHENSIVE LOSS

As of January 1, 1998, the Company adopted Statement 130, Reporting
Comprehensive Income. Statement 130 establishes new rules for the reporting and
display of comprehensive income and its components. Statement 130 requires
unrealized gains or losses on the Company's available-for-sale securities and
the foreign currency translation adjustments, which prior to adoption were
reported separately in stockholders' equity, to be included in other
comprehensive income. Prior year financial statements have been reclassified to
conform to the requirements of Statement 130.


                                       9
<PAGE>   9


<TABLE>
<CAPTION>

                                                                         Three Months Ended
                                                                               March 31
                                                                   ----------------------------------
                                                                       2000                 1999
                                                                   -------------        -------------
<S>                                                                <C>                   <C>

Net loss........................................                   (2,640,257)          (2,306,015)
Other comprehensive income (loss):
Unrealized gain (loss) on available
   for sale securities..........................                            -               14,683
Foreign currency translation                                          (82,865)            (332,128)
                                                                   -------------        -------------
Comprehensive loss..............................                   (2,723,122)          (2,623,460)

</TABLE>

NOTE F -- SUBSEQUENT EVENT

On April 17, 2000 the Company entered into a Private Equity Line of Credit
Agreement (the Line) with Triton West Group, Inc. (the Investor). The duration
of the Line is for three years in the amount of $12,000,000.

Under the agreement, the Company may put to the Investor a number of common
shares at a price equal to the lowest bid price two trading days prior to and
three days following the trading day. The put amount may not exceed a maximum
put amount determined on that date, subject to certain limitations, and may not
be less than $100,000. Puts may be made every fifteen days.

The Investor will receive 35,000 warrants (the Commitment Warrants) to purchase
common stock at the date of the Purchase Agreement. The price of the warrants is
$1.875 per warrant and represents 125% of the Market Price on the date of the
Purchase Agreement. The warrants are exercisable on or after October 17, 2000
and on or prior to the close of business on April 16, 2003.

The Investor will also receive warrants to purchase shares of common stock up to
14% of the put shares on the closing date of the puts. The exercise price will
be equal to the Market Price on the closing date of the puts and are exercisable
up to one year from the closing date.

The Financial Advisor will receive 12,000 shares of common stock for each one
million dollars of shares put by the Company. Additionally the Financial Advisor
receives a fee of 3% of the value of the shares put over the life of the
agreement.

On May 9, 2000 the Company and Spark 1 Vision (the Distributor) agreed to
terminate the exclusive Distribution Agreement entered into between the parties
on November 12,1999. Under the Agreement the Distributor had the exclusive
distribution rights to sell and market the Company's products in Europe, the
Middle East and Africa. The Distributor has fulfilled it's obligations under the
Agreement for the payment of the minimum license fees and certain expenses to
the Company for the current period of the Agreement.



                                       10
<PAGE>   10



Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Results of Operations

Three Months Ended March 31, 2000 Compared to Three Months Ended March 31, 1999

       Net Sales. Net sales for the three months ended March 31, 2000 (the "2000
Interim Period") were approximately $730,000, largely attributable to revenues
recognized from the sale of implant software libraries and service contracts
compared to the three months ended March 31, 1999 (the "1999 Interim Period") of
approximately $2,287,000, which included the sale of three ROBODOC systems.

       Cost of Sales. Cost of sales for the 2000 Interim Period was
approximately $342,000 (47% of net sales) as compared to the 1999 Interim Period
of approximately $1,105,000 (48% of net sales).

       Selling, General and Administrative. Selling, general and administrative
expenses for the 2000 Interim Period (approximately $1,112,000) decreased by
approximately $465,000, or 29.5% as compared to the 1999 Interim Period
(approximately $1,577,000). Marketing costs decreased approximately $353,000 due
to a reduction in the number of field sales employees. General and
administrative costs decreased approximately $112,000 also as a result of lower
staffing levels.

       Research and Development. Research and development expenses for the 2000
Interim Period (approximately $1,747,000) increased by approximately $117,000,
or approximately 7%, as compared to the 1999 Interim Period (approximately
$1,630,000), due to additional engineering staff required to support the
successful knee replacement application and the additional travel and expenses
associated with this project.

       Interest Income. Interest income for the 2000 Interim Period
(approximately $20,000) decreased by approximately $17,000, or 46%, as compared
to the 1999 Interim Period (approximately $37,000), primarily due to lower
average cash balances during the 2000 Interim Period as a result of the
Company's 1999 operating loss.

       Other Income and Expense. Other expense for the 2000 Interim Period was
approximately $176,000 compared to expense of approximately $288,000 in the 1999
Interim Period. The decrease in expense ($119,000) is primarily attributable to
a decrease in foreign currency transaction losses in the 2000 Interim Period
versus those recognized in the 1999 Interim Period.

       Net Loss. The net loss for the 2000 Interim Period (approximately
$2,640,000) increased by approximately $334,000, , as compared to the net
loss for the 1999 Interim Period (approximately $2,306 ,000). The increased
loss was a result of lower revenues.



                                       11
<PAGE>   11



Liquidity and Capital Resources

       Since inception, the Company's expenses have exceeded net sales.
Operations have been funded primarily from the issuance of debt and the sale of
equity securities aggregating approximately $47.2 million. In addition, the
Company was the beneficiary of proceeds from a $3 million key-man life insurance
policy in 1993 upon the death of one of its executives.

       The report of the independent auditors on the Company's December 31,
2999 financial statements included an explanatory paragraph indicating there is
substantial doubt of the Company's ability to continue as a going concern.

       The Company's use of cash in operating activities of approximately
$2,718,000 in the 2000 Interim Period increased by approximately $2,646,000 as
compared to cash usage due to operating activities in the 1999 Interim Period
of approximately $72,000. The increase in operating cash usage in the 2000
Interim Period was primarily a result of operating losses, an increase in
inventory of approximately 613,000, a decrease in accounts payable of
approximately $263,000, and an increase in accounts receivable of approximately
$282,000. The Company believes that it has developed a viable plan to
address these issues and that its plan will enable the Company to continue
as a going concern through the end of 2000. This plan includes the expansion
of the geographic markets in which its products are sold, new applications
for its products, the consummation of equity financings in amounts sufficient
to fund further growth, to attain its product development and marketing
objectives and meet its working capital demands, and the reduction of certain
operating expenses as necessary. Although the Company believes that its
plan will be realized, there is no assurance that these events will occur. The
financial statements do not include any adjustments to reflect the
uncertainties related to the recoverability and classification of assets or the
amounts and classification of liabilities that may result from the inability of
the Company to continue as a going concern.

       The Company's cash flow from investing activities, improved by
approximately 604,000. The improvement in operating cash usage in the interim
period was primarily due to a decrease in investments in sales type leases and
in property and equipment.

       Cash provided by financing activities in the 2000 Interim Period was
approximately $705,000 and decreased by approximately $931,000 as compared to
the financing activities during the 1999 Interim Period. In February 2000 the
Company received net proceeds of approximately $1,880,000 from the sale of
Series F Preferred Stock and Warrants (see Note C to the financial statements
and Part II, Item 2. Changes in Securities and Use of Proceeds) and retired the
outstanding Series E Convertible Preferred Stock in the amount of $1,185,000.

       The Company's available cash resources, together with anticipated cash
flows from operations, may not be sufficient to continue operations without
additional financing. The Company has been able to raise capital from the
investment community under terms that have been satisfactory. The Company
continues to seek additional financing, such financing may not be available on
terms acceptable to the Company. The Company is attempting to reduce operating
expense to a point where funds generated internally will mitigate the
possibility of having to look to the investment community for capital.

       PART II. OTHER INFORMATION

Item 2. Changes in Securities and Use of Proceeds

(a) On February 8, 2000, the Company issued and sold 2,000 shares of Series F
Convertible Preferred Stock ("Series F Preferred Stock") and warrants to
purchase 12,500 shares of common stock, par value $.01 per share ("Common
Stock"), to institutional accredited investors for a total purchase price of
$2,000,000, pursuant to a Preferred Stock Purchase Agreement dated as of
February 8, 2000 (the "Purchase Agreement"). In addition, the Company issued
25,000 shares of Common Stock to a Financial Advisor in connection with
the preferred stock financing. The Series F Preferred Stock, warrants and shares
of Common Stock were issued pursuant to the exemption from the registration
requirements of the Securities Act of 1933 (the "Securities Act") provided by
Section 4(2) of the Securities Act and Rule 506 of Regulation D promulgated by
the Commission under that Section.


                                       12
<PAGE>   12

The Series F Preferred Stock is convertible into shares of Common Stock, at the
option of the holder thereof, commencing August 8, 2000, subject to certain
limitations, discussed below. The number of shares of Common Stock issuable upon
conversion of the Series F Preferred Stock is equal to the quotient of (x) the
product of $1,000 (the stated value of each share of Series F Preferred Stock)
and the number of shares of Series F Preferred Stock to be converted and (y) 85%
of the lowest sale price of the Common Stock on the Nasdaq SmallCap Market
during the five trading days preceding the date of conversion (the "Market
Price"), but in no event more than $1.22 (the "Maximum Conversion Price").

No holder may convert the Series F Preferred Stock to the extent such
conversion would result in the holders in the aggregate acquiring more than
2,844,091 shares of Common Stock (the "Maximum Shares"), representing 19.9% of
the number of shares of Common Stock outstanding on February 8, 2000 (the date
upon which the Series F Preferred Stock and the warrants were issued), unless
and until the Company's stockholders approve the issuance of more than the
Maximum Shares. The Company may require holders to convert all (but not less
than all) of the Series F Preferred Stock at any time after February 8, 2003, or
buy out all outstanding shares, at the then Conversion Price.

Holders of Series F Preferred Stock are not entitled to dividends and have no
voting rights, unless required by law or with respect to certain matters
relating to the Series F Preferred Stock.

The Company may redeem the Series F Preferred Stock upon written notice to the
holders of the Series F Preferred Stock at any time after the earlier of August
8, 2000 and the closing of a registered firm commitment underwritten secondary
offering of the Company's equity securities, at a redemption price equal to the
greater of $1,500 per share and the Market Price of the shares of Common Stock
into which such shares of Series F Preferred Stock could have been converted on
the date of the notice of redemption.

The Conversion Price and the number of shares of Common Stock issuable upon
conversion are subject to adjustment in the event of a stock split, stock
dividend, reorganization, reclassification or issuances of shares of Common
Stock (or securities convertible into or exercisable or exchangeable for Common
Stock) prior to the first anniversary of the effective date of the registration
statement referred to below, at less than the then Conversion Price in
transactions exempt from the registration requirements of the Securities Act if
the Company grants the purchasers of such shares (or other securities) the right
to demand registration of such shares.

The warrants are exercisable at any time during the period commencing August 8,
2000 and ending August 8, 2003, at an exercise price of $2.375 subject to
adjustment in the event of a stock split, stock dividend, reclassification,
recapitalization, merger, consolidation or certain dispositions of assets.

(b  On April 17, 2000 the Company entered into a Private Equity Line of Credit
Agreement (the Line) with Triton West Group, Inc. (the Investor). The duration
of the Line is for three years in the amount of $12,000,000.

Under the agreement, the Company may put to the Investor a number of common
shares at a price equal to the lowest bid price two trading days prior to and
three days following the trading day. The put amount may not exceed a maximum
put amount determined on that date, subject to certain limitations, and may not
be less than $100,000. Puts may be made every fifteen days.

The Investor will receive 35,000 warrants (the Commitment Warrants) to purchase
common stock at the date of the Purchase Agreement. The price of the warrants is
$1.875 per warrant and represents 125% of the Market Price on the date of the
Purchase Agreement The warrants are exercisable on or after October 17, 2000 and
on or prior to the close of business on April 16, 2003.

The Investor will also receive warrants to purchase shares of common stock up to
14% of the put shares on the closing date of the puts. The exercise price will
be equal to the Market Price on the closing date of the puts and are exercisable
up to one year from the closing date.

The Financial Advisor receive 12,000 shares of common stock for each one million
dollars of shares put by the Company. Additionally the Financial Advisor
receives a fee of 3% of the value of the shares put over the life of the
agreement.

                                       13
<PAGE>   13

Item 6. Exhibits and Reports on Form 8-K
       (a) Exhibits

       27.1     Financial Data Schedule
       (b)      Reports filed on Form 8-K
                ----
                None



Signatures

In accordance with the requirements of the Exchange Act, the registrant has
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

INTEGRATED SURGICAL SYSTEMS, INC.

Date: May 12, 2000 by:          /s/ LOUIS J. KIRCHNER
                                --------------------------
                                Louis J. Kirchner, Chief Financial Officer



                                       14