UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                   FORM 10-QSB

[X]      Quarterly Report under Section 13 or 15(d) of the Securities Exchange
         Act of 1934

                 For the quarterly period ended March 31, 2006

[ ]      Transition Report under 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 small business issuer as specified in its charter)

           Delaware                                             68-0232575
           --------                                             ----------
(State or other jurisdiction of                                (IRS Employer
 incorporation or organization)                              Identification No.)

                  1433 N. Market Blvd. #1, Sacramento, CA 95834
                  ---------------------------------------------
                    (Address of principal executive offices)

                                 (916) 285-9943
                                 --------------
                           (Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 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.
Yes [   ] No [ X ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the exchange Act). Yes [ ] No [ X ]

The number of shares of common stock, $0.01, par value, outstanding on April 12,
2007 was 45,784,089.

Transitional Small Business Disclosure format (check one). Yes [ ] No [ X ]


<PAGE>


                        Integrated Surgical Systems, Inc.
                                   Form 10-QSB
                      for the quarter ended March 31, 2006

                                Table of Contents


                                                                           Page
Part I.   Financial Information

          Item 1.    Financial Statements                                   2

                     Balance Sheet (unaudited) at March 31, 2006            2

                     Statements of Operations (unaudited) for               3
                     the three months ended March 31, 2006 and 2005

                     Statements of Cash Flows (unaudited) for               4
                     the three months ended March 31, 2006 and 2005

                     Notes to Financial Statements (unaudited)              5

          Item 2.    Management's Discussion and Analysis                   6

          Item 3.    Controls and Procedures                               10

Part II.  Other Information

          Item 1.    Legal Proceedings                                     10

          Item 6.    Exhibits                                              10

Signature                                                                  11

Certifications


<PAGE>


Part I. Financial Information

        Item 1.  Financial Statements (unaudited)


                        Integrated Surgical Systems, Inc.
                                  Balance Sheet
                                 March 31, 2006
                                   (Unaudited)

Assets
Current assets:
     Cash                                                          $    171,840
     Accounts receivable                                              1,551,918
     Inventory                                                           63,153
     Other current assets                                               137,809
                                                                   ------------
Total current assets                                                  1,924,720

Other Assets                                                             15,000
                                                                   ------------
                                                                   $  1,939,720
                                                                   ============


Liabilities and stockholders' deficit
Current liabilities:
     Accounts payable                                              $  2,117,199
     Accrued payroll and related expenses                               133,376
     Accrued liabilities                                                 98,275
     Unearned income                                                  2,231,083
     Derivative liability                                                84,231
                                                                   ------------
Total current liabilities                                             4,664,164
                                                                   ------------

Note payable                                                             42,000

Convertible preferred stock, $0.01 par value,
     1,000,000 shares authorized;
     168 shares issued and outstanding
     ($168,496 aggregate liquidation value)                             168,496
                                                                   ------------
Total liabilities                                                     4,874,660
                                                                   ------------

Stockholders' deficit:
     Common stock, $0.01 par value, 100,000,000
         shares authorized;
         45,084,089 shares issued and outstanding                       450,841
     Additional paid-in capital                                      61,924,486
     Accumulated deficit                                            (65,310,267)
                                                                   ------------
Total stockholders' deficit                                          (2,934,940)
                                                                   ------------
                                                                   $  1,939,720
                                                                   ============
See accompanying notes to financial statements.

                                        2
<PAGE>

<TABLE>
<CAPTION>

                                    Integrated Surgical Systems, Inc.
                                        Statements of Operations
                                              (Unaudited)


                                                                Three months ended March 31,
                                                          -------------------------------------
                                                              2006                     2005
                                                          ------------             ------------
<S>                                                       <C>                      <C>
Net revenue                                               $  2,256,050             $  1,702,551
Cost of revenue                                                402,054                  214,876
                                                          ------------             ------------
                                                             1,853,996                1,487,675
Operating expenses:
     Selling, general and administrative                       728,173                  469,940
     Research and development                                  158,339                  134,554
                                                          ------------             ------------
                                                               886,512                  604,494
                                                          ------------             ------------
Operating income                                               967,484                  883,181

Other income (expense), net                                      5,024                   (3,172)
Derivative liability expense                                      --                   (240,267)
Interest expense net                                              --                     (3,416)
                                                          ------------             ------------
Net income                                                $    972,508             $    636,326
                                                          ============             ============


Basic net income per common share                         $       0.02             $       0.01
                                                          ============             ============
Diluted net income per common share                       $       0.01             $       0.01
                                                          ============             ============

Shares used in computing basic net income per share         45,084,089               45,084,089
                                                          ============             ============
Shares used in computing diluted net income per share       79,611,958               54,832,776
                                                          ============             ============


See accompanying notes to financial statements.

                                                          3
<PAGE>


                                         Integrated Surgical Systems, Inc.
                                               Statements Cash Flows
                                                    (Unaudited)


                                                                                Three months ended March 31,
                                                                              ---------------------------------
                                                                                 2006                  2005
                                                                              -----------           -----------
Cash flows from operating activities:
Net income                                                                    $   972,508           $   636,326
Adjustments to reconcile net income to net cash provided by (used in)
 Operating activities:
     Derivative liability expense                                                    --                 240,267
     Increase in reserve on inventory                                                --                 100,000
     Depreciation                                                                    --                   2,640
     Gain on property and equipment                                                (5,000)                 --
     Changes in operating assets and liabilities:
        Accounts receivable                                                    (1,513,963)              (18,531)
        Inventory                                                                 239,322                40,679
        Other current assets                                                     (101,343)                 (198)
        Accounts payable                                                          351,510              (271,561)
        Accrued payroll and related expenses                                     (683,053)             (363,259)
        Accrued liabilities                                                        (7,500)              (20,800)
        Unearned income                                                           855,570            (1,566,822)
                                                                              -----------           -----------
Net cash provided by (used in) operating activities                               108,051            (1,221,259)
                                                                              -----------           -----------
Cash flows from investing activities:
Proceeds on sale of property and equipment                                          5,000                  --
                                                                              -----------           -----------
Net cash provided by investing activities                                           5,000                  --
                                                                              -----------           -----------

Cash flows from financing activities:
Payment on note payable                                                          (100,000)                 --
                                                                              -----------           -----------
Net cash used in financing activities                                            (100,000)                 --
                                                                              -----------           -----------

                                                                              -----------           -----------
Net increase (decrease) in cash                                                    13,051            (1,221,259)
Cash at beginning of period                                                       158,789             1,324,403
                                                                              -----------           -----------
Cash at end of period                                                         $   171,840           $   103,144
                                                                              ===========           ===========

See accompanying notes to financial statements.

                                                          4
</TABLE>

<PAGE>


                        Integrated Surgical Systems, Inc.
                    Notes to Financial Statements (unaudited)


1. Organization and Operations

Integrated Surgical Systems, Inc. (Company) was incorporated in Delaware in 1990
to design, manufacture, sell and service image-directed, computer-controlled
robotic software and hardware products for use in orthopedic surgical
procedures. The Company's products are sold through international distributors
to hospitals and clinics in European Union member countries and Australia,
Canada, India, Israel, Japan, Korea, New Zealand, Switzerland and South Africa.
Subsequent to March 31, 2005 the Company ceased operations, three of its four
directors resigned, and all employees were terminated. The officers of the
Company were evaluating the options available to the Company.


2. Significant Accounting Policies

Basis of presentation

The accompanying unaudited financial statements and related notes have been
prepared in accordance with accounting principles generally accepted in the
United States for interim financial statements and with the rules and
regulations of the Securities and Exchange Commission for Form 10-QSB.
Accordingly, they do not include all of the information and footnotes required
by accounting principles generally accepted in the United States for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation of
the financial position, results of operations and cash flows for the interim
periods have been included. These financial statements should be read in
conjunction with the financial statements of the Company together with the
Company's management discussion and analysis in the Company's Form 10-KSB for
the year ended December 31, 2005. Interim results are not necessarily indicative
of the results for a full year.

Certain amounts for prior years have been reclassified to conform with 2006
financial statement presentations.

The financial statements include all the accounts of the Company.

Estimates

The preparation of 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 and liabilities and
the disclosure of contingent assets and liabilities at the date of the financial
statements and revenues and expenses during the reporting period. Actual results
could differ from those estimates.

Derivative Liabilities

Derivative liabilities consisted of: (a) the embedded conversion feature
bifurcated from the June 9, 2004 convertible note payable and (b) the warrants
in connection with the convertible notes payable. The value of the derivative
liabilities are recorded first as a discount on the convertible notes payable
and the excess is charged to operations. The discount is being amortized over
the term of the note. The derivative liabilities are adjusted quarterly to
reflect changes in fair value.

The Company uses the Black-Scholes option price model to value the embedded
conversion and the detachable warrants that are recorded as a derivative
liability. In valuing the embedded conversion feature and the detachable
warrants, at the time they were issued and quarterly thereafter, the Company
used the market price of our common stock on the date of valuation, an expected
dividend yield of zero, the remaining period or maturity date of the convertible
debt feature or detachable warrants and the expected volatility of our common
stock.

                                       5
<PAGE>


Stock-Based Compensation

Compensation costs for common stock issued to employees were based on the fair
value method and deferred as shareholders' equity until amortized to operations.

New Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective
accounting pronouncements, if adopted, would have a material effect on the
accompanying financial statements.


3. Going Concern

The accompanying unaudited financial statements have been prepared on a going
concern basis, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. As of March 31, 2006, the
Company had an accumulated deficit of $65,310,267 and negative working capital
of $2,739,444. The report of the independent registered public accounting firm
on the Company's December 31, 2005 financial statements includes an explanatory
paragraph indicating there is substantial doubt about the Company's ability to
continue as a going concern.

The Company believes that it has a current plan to address these issues in order
to enable the Company to continue operations. This plan includes obtaining
additional equity or debt financing, increasing product sales in existing
markets, increasing sales of system upgrades, and further reductions in
operating expenses as necessary. Although the Company believes that the plan
will be realized, there is no assurance that these events will occur. In the
event that the Company is unsuccessful in realizing the benefits of such plan,
it is possible that the Company will seek bankruptcy protection. These 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 an inability of the Company
to continue as a going concern.


     Item 2. Management's Discussion and Analysis

Forward-Looking Statements

The discussion in this Quarterly Report on Form 10-QSB contains forward-looking
statements that have been made pursuant to the provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are
based on current expectations, estimates and projections about the software
industry and certain assumptions made by the Company's management. Words such as
"anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates,"
"could," "would," "may" and variations of such words and similar expressions are
intended to identify such forward-looking statements. These statements are not
guarantees of future performance and are subject to certain risks, uncertainties
and assumptions that are difficult to predict; therefore, actual results may
differ materially from those expressed or forecasted in any such forward-looking
statements. Unless required by law, the Company undertakes no obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. However, readers should carefully
review the risk factors set forth in other reports or documents the Company
files from time to time with the SEC, particularly the Company's Annual Report
on Form 10-KSB, Quarterly Reports on Form 10-QSB and any Current Reports on Form
8-K.

The following discussion should be read in conjunction with the unaudited
financial statements and notes thereto in Part I, Item 1 of this Quarterly
Report on Form 10-QSB and with the audited Financial Statements and Notes
thereto, together with Management's Discussion and Analysis of Financial
Condition and Results of Operations, which are included in the Company's Annual
Report on Form 10-KSB for the fiscal year ended December 31, 2005 as filed with
the SEC.

Overview

We were incorporated in Delaware in 1990 to design, manufacture, sell and
service image-directed, computer-controlled robotic software and hardware
products for use in orthopedic surgical procedures. Although we have not
received clearance to market the ROBODOC(R) System (ROBODOC) in the U.S., we are

                                       6

<PAGE>


permitted to export the system provided certain requirements are met. Products
approved for use by European Union member countries and Australia, Canada,
India, Israel, Japan, Korea, New Zealand, Switzerland and South Africa, do not
require U.S. FDA export approval. We sell our robotic systems to international
distributors, who in turn resell the product in their territories. Our
international distributors are KTEC in Japan, ROCOM Frontier in Korea and
Paramount Impex in India.

On August 8, 2006, we filed Form 8-K with the SEC disclosing that we had entered
into a $4 million asset purchase agreement to sell substantially all of our
assets to Novatrix Biomedical, Inc. in consideration of $4 million as well as a
loan agreement with Novatrix pursuant to which Novatrix would loan us an
aggregate of $6 million in two tranches of $2.7 million upon the execution of
the agreement, and an additional $3.3 million in two tranches upon certain
milestones with Novatrix. As required by the loan agreement, we have reached a
settlement with over 80% of our outstanding creditors in exchange for 17.6 cents
for each dollar owed. The loan agreement further provides that in the event that
approval by our stockholders of the asset sale does not occur by June 30, 2007,
we will be required to grant an exclusive license in the Asian markets of our
ROBODOC Surgical System software to Novatrix in exchange for a one-time royalty
payment of $100,000.

Product revenue consists of sales of our principal orthopedic product, the
ROBODOC(R) Surgical Assistant System ("ROBODOC"), which integrates the
ORTHODOC(R) Presurgical Planner ("ORTHODOC") with a computer-controlled robot
for use in joint replacement surgeries. We develop specialized operating
software for several implant manufacturing companies. These implant
manufacturers contract with us for the development of software for particular
lines of new prosthesis to be used with the ROBODOC System.

We currently have warranty reserves of $230,000 on products delivered in Q1
2006.

Results of operations

We generated net income for the first quarter of 2006 of $973,000 or $0.02 per
basic share and $0.01 per dilutive share compared to net income for the first
quarter of 2005 of $636,000 or $0.01 per basic and dilutive share.

Net revenue

Net revenue of $2,256,000 in Q1 2006 increased 32% when compared to $1,703,000
in the first quarter of 2005. The major components of revenue for Q1 2006 were
comprised of $2,070,000 from system sales and $138,000 from repairs and
consumables and $48,000 from service contracts compared to $3,000 from repairs
and consumables, $136,000 from service contracts and $1,563,000 from development
revenue in the first quarter of 2005. Although there was no development revenue
in the current quarter, this loss of $1,563,000 of revenue, when compared to the
same period last year, was more than made up for by the $2,070,000 from the sale
of two ROBODOC Systems in the current year.

Cost of revenue

Cost of revenue of $402,000 in Q1 2006 increased 87% when compared to $215,000
in the first quarter of 2005, as 92% of the revenue in the current quarter was
from higher cost system revenue and 92% of the revenue from the same quarter one
year ago was from lower cost development revenue. Cost of revenue were 18% of
revenue in Q1 2006 and 13% in Q1 2005 as the gross sales price of the two
ROBODOC Systems sold in the current quarter were at a higher price as they were
sold directly to the hospitals and a sales commission was paid to our
distributor and charged to selling, general and administrative expense. These
two ROBODOC Systems sales differed from our normal process of selling systems
directly to our distributor at a lower price without commission being paid.

Gross margin

Gross margin of $1,854,000 increased 25% during the first quarter of 2006 when
compared to $1,488,000 in the first quarter of 2005 and were 82% of revenue in
Q1 2006 and 87% of revenue in Q1 2005 as the gross price of the two ROBODOC
Systems sold in the current quarter were at a higher price, as they were sold

                                       7

<PAGE>


directly to the hospital and a sales commission was paid to our distributor and
charged to selling, general and administrative expenses.

Operating expenses

Operating expenses of $887,000 increased 47% during the first quarter of 2006
when compared to $604,000 in the first quarter of 2005 and were 39% of revenue
compared to 36% of revenue in the first quarter of 2005.

Selling, general andadministrative expenses

Selling, general and administrative expense of $728,000 increased 55% during the
first quarter of 2006 when compared to $470,000 in the first quarter of 2005 and
were 32% of revenue compared to 28% of revenue in the first quarter of 2005.
Selling, general and administrative expense in Q1 2006 included $600,000 to our
distributor as commission expense. Without this commission, selling, general and
administrative expense would only have been $128,000, or 6% of revenue for Q1
2006 due to our limited head count.

Research and development

Research and development of $158,000 increased 17% during the first quarter of
2006 when compared to $135,000 in the first quarter of 2005 and were 7% of
revenue compared to 8% of revenue in the first quarter of 2005. Although we had
very limited research and development activity in the current quarter, the
expense reported was almost entirely related to a project that was determined
closed in this current quarter.

Other income (expense) net

Other income for the first quarter of 2006 was $5,000 from the sale of a fully
depreciated piece of equipment, as compared to other expense in Q1 2005 of
$247,000 primarily due to $240,000 of derivative liability expense from the
application of the mark to market requirements of FAS 133.

Liquidity and Capital Resources

Our cash position is inadequate, and although we received a cash payment for one
ROBODOC System in Q1 2006, and expect payment for another ROBODOC System in Q2
2006, and have identified potential sources of cash for future operations, there
cannot be any assurance that we will receive these cash amounts, or that these
cash amounts will be sufficient to assure continuing operations. The report of
independent auditors on our December 31, 2005 financial statements includes an
explanatory paragraph indicating there is substantial doubt about our ability to
continue as a going concern. We believe that we have a current plan to address
these issues and enable us to continue operations. This plan includes obtaining
additional equity or debt financing, increasing product sales in existing
markets, increasing sales of system upgrades, and further reductions in
operating expenses as necessary. Although we believe that the plan will be
realized, there is no assurance that these events will occur. In the event that
we are unsuccessful in realizing the benefits of such plan, it is possible that
we will seek bankruptcy protection. The March 31, 2006 unaudited 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 our inability to continue as
a going concern.

At March 31, 2006, our "quick ratio" (cash and accounts receivable divided by
current liabilities), a conservative liquidity measure designed to predict our
ability to pay bills, was only 0.37. It has been difficult for us to meet
obligations, including payroll, as they come due, and we expect this situation
to continue through 2006.

Net cash provided by operating activities was $108,000 for the three months
ended March 31, 2006. This resulted primarily from income of $973,000 and an
increase in unearned revenue of $856,000 and accounts payable of $352,000 offset
in part from an increase in accounts receivable of $1,514,000 and a decrease in
accrued payroll and related expenses of $683,000.

                                       8
<PAGE>


The increase in accounts receivable was primarily due to ROBODOC System sales.
The decrease in accrued payroll and other related expenses was primarily from
payments made for past due payrolls from a prior year and related accrued
benefits. The increase in unearned income primarily is from deposits made on
future delivery of systems in production.

Funds used in financing activities was a result of our settlement and
installment payments to a accredited investor.

We expect to derive most of the cash required to support our operations in 2006
through sales of the ROBODOC Systems and collection of accounts receivable, as
well as through additional financing. It is critical for us to maintain
operations as a going concern in 2006. There can be no assurance that we can
continue to convert inventory, collect receivables or raise additional funds on
acceptable terms, if at all.

At March 31, 2006, we have amounts due to our executive officers of
approximately $154,000 in the aggregate, deferred salaries and unreimbursed
travel expenses. Approximately $122,000 and $19,000 are included in accrued
payroll and related expenses, and accounts payable, respectively, and are due to
Ramesh C. Trivedi, our president and chief executive officer. Approximately
$11,000 and $2,000 are included in accrued payroll and related expense, and
accounts payable respectively, due to Leland Witherspoon, our vice president of
research and development.

We anticipate that we will have swings in operating income and loss over the
next twelve months depending on the amount of revenue we can generate.

We do not have any material commitments for capital expenditures.

There are no seasonal aspects to our business.

We do not have any 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, liquidity or capital resources that
are material to our investors.

Critical Accounting Policies and Estimates

The preparation of our unaudited financial statements requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities,
revenue and expenses, and related disclosure of contingent assets and
liabilities. On an on-going basis, we evaluate the estimates, including those
related to bad debts, inventories, warranties, contingencies and litigation. We
base these estimates on historical experience and on other assumptions believed
to be reasonable under the circumstances, the results of which form the basis
for making judgments about the carrying values of assets and liabilities that
are not readily apparent from other sources. We have discussed our critical
accounting policies with our independent accountants. Actual results may differ
from these estimates under different assumptions or conditions.

                                        9
<PAGE>


We believe the following critical accounting policies affect our more
significant judgments and estimates used in the preparation of our financial
statements:

     We recognize revenue from sales of our products upon the completion of
     equipment installation and training at the end-user's site, except when the
     sales contract requires formal customer acceptance. Equipment sales with
     contractual customer acceptance provisions are recognized as revenue upon
     written notification of customer acceptance, which generally occurs after
     the completion of installation and training. Furthermore, due to business
     customs in Japan and the interpretation of Japanese law, all equipment
     sales to Japan are recognized after customer acceptance, which generally
     occurs after the completion of installation and training. Revenue related
     to maintenance and service contracts is recognized ratably over the
     duration of the contracts.

     We periodically evaluate the need for allowances for doubtful accounts for
     estimated losses resulting from the inability of our customers to make
     required payments. If the financial condition of our customers were to
     deteriorate, resulting in an impairment of our ability to make payments,
     additional allowances may be required.

Item 3.   Controls and Procedures

(a) Under the supervision and with the participation of management, including
our President and Chief Executive Officer and Chief Financial Officer, an
evaluation was made of the effectiveness of our disclosure controls and
procedures, as such term is defined under Rule 13a-15(e) promulgated under the
Securities Exchange Act of 1934, as amended. Based upon that evaluation, our
President and Chief Executive Officer and our Chief Financial Officer concluded
that our disclosure controls and procedures were effective as of the end of the
period covered by this quarterly report.

(b) There has been no significant changes in our internal control over financial
reporting during the quarter ended March 31, 2006 that has materially affected,
or is reasonably likely to materially affect, our internal control over
financial reporting.


Part II. Other Information

Item 1.  Legal Proceedings

We are subject to legal proceedings and claims that arise in the normal course
of business. We cannot assure that we would prevail in such matters nor can we
assure we would have sufficient funds available to satisfy any adverse judgment.
Due to the inherent uncertainties of litigation, were there any such matters, we
would not be able to accurately predict their ultimate outcome. As we made the
final installment payment on the promissory note settlement with La Jolla Cove
Investors on April 19, 2006, there were no current proceedings or litigation
involving us that we believe if judgment were rendered against us would have a
material adverse impact on our financial position, results of operation or cash
flows.

Item 6.   Exhibits

(a)Exhibits

31.1 Certification Pursuant to Exchange Act Rule 13a-14(a) of Ramesh Trivedi
31.2 Certification Pursuant to Exchange Act Rule 13a-14(a) of David Adams
32.1 Certification Pursuant to Section 1350 of the Sarbanes-Oxley Act of 2002 of
     Ramesh Trivedi
32.2 Certification Pursuant to Section 1350 of the Sarbanes-Oxley Act of 2002 of
     David Adams


                                       10
<PAGE>


                                   SIGNATURES

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


                                    INTEGRATED SURGICAL SYSTEMS, INC.


                                    By: /s/ DAVID H. ADAMS
                                        ---------------------------------------
                                        David H. Adams, Chief Financial Officer


 April 13, 2007


                                       11