```markdown [Part I - Financial Information](index=3&type=section&id=Part%20I-%20Financial%20Information) [Item 1 - Financial Statements](index=3&type=section&id=Item%201%20-%20Financial%20Statements) This section presents the unaudited interim consolidated financial statements for Microbot Medical Inc. and its subsidiaries, including balance sheets, statements of operations, comprehensive loss, shareholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, lease obligations, commitments, contingencies, share capital developments, and subsequent events [Interim Consolidated Balance Sheets](index=4&type=section&id=Interim%20Consolidated%20Balance%20Sheets) Interim Consolidated Balance Sheets Data | Metric | June 30, 2020 (Unaudited, in thousands) | December 31, 2019 (Audited, in thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $28,233 | $28,771 | | Total current assets | $28,768 | $35,936 | | Total assets | $29,907 | $37,126 | | Total current liabilities | $851 | $4,826 | | Total liabilities | $1,518 | $5,586 | | Total stockholders' equity | $28,389 | $31,540 | - **Total assets** decreased from **$37,126 thousand** at December 31, 2019, to **$29,907 thousand** at June 30, 2020[9](index=9&type=chunk) - **Total liabilities** significantly decreased from **$5,586 thousand** to **$1,518 thousand**, primarily due to the elimination of a **$3,604 thousand** provision for extinguishment dispute[9](index=9&type=chunk) [Interim Consolidated Statements of Operations](index=5&type=section&id=Interim%20Consolidated%20Statements%20of%20Operations) Interim Consolidated Statements of Operations Data | Metric (in thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $669 | $741 | $1,360 | $1,364 | | General and administrative | $1,215 | $804 | $2,687 | $2,097 | | Operating loss | $(1,884) | $(1,545) | $(4,047) | $(3,461) | | Net loss | $(1,855) | $(1,542) | $(4,060) | $(3,503) | | Basic and diluted net loss per share | $(0.26) | $(0.36) | $(0.57) | $(0.83) | - **Net loss** increased for both the three-month period (from **$(1,542)k** to **$(1,855)k**) and the six-month period (from **$(3,503)k** to **$(4,060)k**) year-over-year[11](index=11&type=chunk) - **General and administrative expenses** increased significantly for both periods, while **research and development expenses** slightly decreased for the three-month period and remained stable for the six-month period[11](index=11&type=chunk) [Interim Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Interim%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Interim Consolidated Statements of Comprehensive Loss Data | Metric (in thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(1,855) | $(1,542) | $(4,060) | $(3,503) | | Comprehensive loss | $(1,855) | $(1,542) | $(4,060) | $(3,503) | - The comprehensive loss for both the three and six months ended June 30, 2020, was equal to the **net loss**, indicating no significant other comprehensive income or loss components[14](index=14&type=chunk) [Interim Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Interim%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Interim Consolidated Statements of Shareholders' Equity Data | Metric (in thousands) | December 31, 2019 | June 30, 2020 | | :-------------------- | :---------------- | :------------ | | Common Stock Shares | 7,185,628 | 7,103,260 | | Common Stock Amount | $72 | $71 | | Additional Paid-In Capital | $69,954 | $67,489 | | Treasury Shares | $(3,375) | $0 | | Accumulated Deficit | $(35,111) | $(39,171) | | Total Stockholders' Equity | $31,540 | $28,389 | - **Total stockholders' equity** decreased from **$31,540 thousand** at December 31, 2019, to **$28,389 thousand** at June 30, 2020, primarily due to the **net loss** of **$4,060 thousand** and the cancellation of treasury shares[17](index=17&type=chunk) - **Share-based compensation** contributed **$909 thousand** to additional paid-in capital for the six months ended June 30, 2020[17](index=17&type=chunk) [Interim Consolidated Statements of Cash Flows](index=8&type=section&id=Interim%20Consolidated%20Statements%20of%20Cash%20Flows) Interim Consolidated Statements of Cash Flows Data | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(3,888) | $(3,200) | | Net cash from investing activities | $2,445 | $(2,496) | | Net cash from financing activities | $(3,375) | $9,562 | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(4,818) | $3,866 | | Cash, cash equivalents and restricted cash at ending of period | $28,311 | $9,129 | - **Net cash used in operating activities** increased to **$(3,888) thousand** for the six months ended June 30, 2020, from **$(3,200) thousand** in the prior year[19](index=19&type=chunk) - **Investing activities** shifted from using cash (**$2,496 thousand**) in 2019 to providing cash (**$2,445 thousand**) in 2020, primarily due to proceeds from sales of marketable securities[19](index=19&type=chunk) - **Financing activities** used **$3,375 thousand** in 2020, a significant change from providing **$9,562 thousand** in 2019, mainly due to the repayment of shareholders' investment related to litigation[19](index=19&type=chunk) [Notes to Interim Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Interim%20Consolidated%20Financial%20Statements) [NOTE 1 - GENERAL](index=9&type=section&id=NOTE%201%20-%20GENERAL) - **Microbot Medical Inc.** is a **pre-clinical medical device company** focused on **micro-robotics assisted medical technologies** for **minimally invasive surgery**[22](index=22&type=chunk) - The company has not generated **revenues from operations** to date and expects to incur **additional losses** due to ongoing **R&D activities**[28](index=28&type=chunk)[29](index=29&type=chunk) - As of June 30, 2020, the company had **$28,311 thousand** in **unrestricted cash and cash equivalents**, which management believes is sufficient to fund operations for more than **12 months**[28](index=28&type=chunk) - The **COVID-19 pandemic** poses risks of **significant delays and disruptions** to **clinical trials**, **supply chain**, and **overall business operations**[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=10&type=section&id=NOTE%202%20-%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - The company adopted **ASU 2018-13**, 'Changes to Disclosure Requirements for Fair Value Measurements,' effective January 1, 2020, with **no material effect** on financial statements[35](index=35&type=chunk) - **ASU No. 2016-13**, 'Financial Instruments – Credit Losses,' is effective for the company on January 1, 2023, and its **impact is currently being evaluated**[36](index=36&type=chunk) - **ASU 2019-12**, 'Simplifying the Accounting for Income Taxes,' is effective for the company on January 1, 2021, with **early adoption permitted**[37](index=37&type=chunk) [NOTE 3 - LEASES](index=11&type=section&id=NOTE%203%20-%20LEASES) - The company adopted **ASU 2016-02**, 'Leases (Topic 842),' on January 1, 2019, using the **modified retrospective approach**[38](index=38&type=chunk) Lease Obligations Summary | Metric (in thousands) | As of June 30, 2020 | | :-------------------- | :------------------ | | Operating lease right-of-use asset | $869 | | Operating lease - current | $188 | | Operating lease - non-current | $667 | | Total lease liability balance | $855 | | Weighted average remaining lease term | **2.5 years** | | Weighted average discount rate | **9%** | - **Cash payments for operating leases** totaled **$52 thousand** as of June 30, 2020[43](index=43&type=chunk) [NOTE 4 - COMMITMENTS AND CONTINGENCIES](index=14&type=section&id=NOTE%204%20-%20COMMITMENTS%20AND%20CONTINGENCIES) - Microbot Israel received approximately **$1,500 thousand** in **grants from the Israeli Innovation Authority (IIA)** from 2013 through June 30, 2020, with an obligation to pay **3%-3.5% royalties on future sales**[44](index=44&type=chunk) - The company has ongoing contract research agreements with Washington University and Wayne State University for the development of its **Self Cleaning Shunt (SCS)** product, involving joint and exclusive licensing options for inventions[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - The company lost an appeal in the **Sabby litigation**, resulting in a **$3,700 thousand** payment and rescission of a 2017 financing agreement; a new lawsuit from **Empery Asset Master Ltd.** and others seeks rescission of an additional **$6,750 thousand** from the same financing[54](index=54&type=chunk) - The company is pursuing **Alliance Investment Management, Ltd.** and **Joseph Mona** for approximately **$468 thousand** in **short-swing profits**, while **Mona** has filed a counterclaim for **$151 thousand** in **net losses** due to alleged misrepresentations[55](index=55&type=chunk)[59](index=59&type=chunk) - The CEO, **Harel Gadot**, received a **salary increase** to **$450 thousand**, an increased **annual bonus potential** (**60%** of salary), a **one-time special bonus**, and a grant of **166,666 stock options**[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [NOTE 5 - SHARE CAPITAL](index=17&type=section&id=NOTE%205%20-%20SHARE%20CAPITAL) - As of June 30, 2020, the company had **7,103,260 shares** of **common stock issued and outstanding**[68](index=68&type=chunk) - The company completed several **equity offerings** in January and December 2019, raising significant **gross proceeds** through the issuance of common stock and warrants[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) Stock Options and Compensation Data | Metric | June 30, 2020 | December 31, 2019 | | :-------------------------------- | :------------ | :---------------- | | Stock options outstanding at end of period | 537,061 | 371,360 | | Vested at end of period | 303,509 | 270,827 | | Aggregate intrinsic value of outstanding options | $689 | $403 | | Total unrecognized compensation costs | $1,884 | N/A | - **Compensation expense** for **stock-based awards** was **$909 thousand** for the six months ended June 30, 2020, compared to **$610 thousand** for the same period in 2019[84](index=84&type=chunk) [NOTE 6 - SUBSEQUENT EVENTS](index=21&type=section&id=NOTE%206%20-%20SUBSEQUENT%20EVENTS) - On July 14, 2020, the Board approved grants of **25,000 stock options** to an executive officer and **6,493 stock options** to a director, with an **exercise price** of **$6.16** per share, **vesting over three years**[87](index=87&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of Microbot Medical Inc.'s business, its proprietary technological platforms, and a detailed analysis of its financial condition and results of operations for the three and six months ended June 30, 2020, compared to the prior year, also discussing liquidity, capital resources, and critical accounting policies [Overview](index=22&type=section&id=Overview) - Microbot is a **pre-clinical medical device company** focused on developing next-generation robotic endoluminal surgery devices for minimally invasive procedures[91](index=91&type=chunk) - The company leverages its micro-robotic technologies (**ViRob**, **TipCAT**, **Liberty**, and **CardioSert** assets) to redefine surgical robotics and improve patient outcomes[92](index=92&type=chunk) - Microbot holds a **patent portfolio** of **37 issued/allowed patents** and **15 pending patent applications** worldwide[93](index=93&type=chunk) [Technological Platforms](index=22&type=section&id=Technological%20Platforms) - **ViRob** is an autonomous crawling micro-robot designed for navigation in natural and artificial spaces within the human body, used in the **Self Cleaning Shunt (SCS)** product[94](index=94&type=chunk) - **TipCAT** is a **disposable, self-propelled locomotive device** that advances in tubular anatomies using an **inchworm-like motion**, aiming to reduce external pressure and operator dependence[96](index=96&type=chunk) - **CardioSert** technology, acquired in 2018, combines a **guidewire and microcatheter** with **steering and stiffness control**, initially developed for **chronic total occlusions (CTO)** in **percutaneous coronary intervention (PCI)** procedures[97](index=97&type=chunk)[98](index=98&type=chunk) - **Liberty** is presented as the world's first **fully disposable robotic system** for **Endovascular Interventional procedures**, featuring **remote operation**, **reduced radiation exposure**, and a **'One & Done' tool** combining **guidewire and microcatheter**[99](index=99&type=chunk)[100](index=100&type=chunk) [Financial Operations Overview](index=24&type=section&id=Financial%20Operations%20Overview) - **General and administrative expenses** are expected to increase due to **expanding operations**, patent portfolio maintenance, and **public company compliance costs**[104](index=104&type=chunk) - The company has incurred **net losses** and has not recorded **income tax benefits**, as it is in the **development stage** without generated **revenues**[105](index=105&type=chunk) - **Research and development expenses are recognized as incurred**, with estimates based on the progress of specific tasks and vendor information[111](index=111&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Operating Expenses and Financing Data | Expense Category (in thousands) | 3 Months Ended June 30, 2020 | 3 Months Ended June 30, 2019 | Change (YoY) | 6 Months Ended June 30, 2020 | 6 Months Ended June 30, 2019 | Change (YoY) | | :------------------------------ | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Research and development | $669 | $741 | $(72) | $1,360 | $1,364 | $(4) | | General and administrative | $1,215 | $804 | $411 | $2,687 | $2,097 | $590 | | Financing expenses/(income), net | $(29) | $(3) | $26 | $13 | $42 | $(29) | - **Research and development expenses** decreased by **$72 thousand** for the three months ended June 30, 2020, primarily due to a decrease in **professional services**[113](index=113&type=chunk) - **General and administrative expenses** increased by **$590 thousand** for the six months ended June 30, 2020, driven by higher **salaries, insurance, rent, and share-based compensation**, partially offset by lower **legal and travel expenses**[114](index=114&type=chunk) - **Financing income (expenses)** shifted from income to expense for the six months ended June 30, 2020, primarily due to **interest related to litigation**[115](index=115&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) - The company has incurred **net losses** and **negative cash flows from operating activities** since inception[116](index=116&type=chunk) Working Capital and Cumulative Loss Data | Metric (in thousands) | June 30, 2020 | December 31, 2019 | | :-------------------- | :------------ | :---------------- | | Net working capital | $27,917 | $31,110 | | Cumulative loss (since inception) | $39,171 | N/A | - Microbot believes its **current cash** of **$28,311 thousand** is sufficient to **fund operations for at least 24 months**, or at least **12 months** if the **ongoing $6,750 thousand litigation** is lost[119](index=119&type=chunk) - The company may seek **additional funding** through **debt, equity issuances, or grants** from the **Israeli Innovation Authority**, which could result in **shareholder dilution**[120](index=120&type=chunk) [Cash Flows](index=27&type=section&id=Cash%20Flows) Cash Flow Activities Summary | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(3,888) | $(3,200) | | Net cash from investing activities | $2,445 | $(2,496) | | Net cash from financing activities | $(3,375) | $9,562 | | Net (decrease) increase in cash and cash equivalents and restricted cash | $(4,818) | $3,866 | - **Net cash used in operating activities** increased by **$688 thousand** year-over-year, reflecting **higher operational expenses**[121](index=121&type=chunk)[122](index=122&type=chunk) - **Investing activities** generated **$2,445 thousand** in cash in 2020, a significant improvement from using **$2,496 thousand** in 2019, primarily due to **proceeds from marketable security sales**[121](index=121&type=chunk)[123](index=123&type=chunk) - **Financing activities** used **$3,375 thousand** in 2020, a reversal from providing **$9,562 thousand** in 2019, mainly due to the **repayment of shareholders' investment related to litigation**[121](index=121&type=chunk)[124](index=124&type=chunk) [Off-Balance Sheet Arrangements](index=27&type=section&id=Of%20-Balance%20Sheet%20Arrangements) - Microbot has no **off-balance sheet arrangements** that have or are reasonably likely to have a **material current or future effect** on its **financial condition, revenues, expenses, results of operations, liquidity, capital expenditures, or capital resources**[125](index=125&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines Microbot Medical Inc.'s exposure to market risks, specifically interest rate risk and foreign exchange risk, and discusses the potential impact of inflation on its operations [Interest Rate Risk](index=27&type=section&id=Interest%20Rate%20Risk) - Microbot's primary exposure to market risk is **interest income sensitivity**, but due to the **short-term nature of its cash and cash equivalents**, a sudden change in interest rates is not expected to have a **material impact**[126](index=126&type=chunk) [Foreign Exchange Risks](index=28&type=section&id=Foreign%20Exchange%20Risks) - The company's **financial statements are in U.S. dollars**, but a significant portion of **operating expenses are in other currencies**, exposing it to **foreign exchange rate fluctuations**[128](index=128&type=chunk) - Microbot may use **financial instruments like forward foreign currency contracts** in the future to **manage foreign currency exposure**[129](index=129&type=chunk) [Effects of Inflation](index=28&type=section&id=Ef%20ects%20of%20Inflation) - **Inflation** generally affects the company by increasing **clinical trial costs**, but it has not had a **significant impact on results of operations** for the periods presented[130](index=130&type=chunk) [Item 4 - Controls and Procedures](index=28&type=section&id=Item%204%20-%20Controls%20and%20Procedures) This section details the effectiveness of Microbot Medical Inc.'s disclosure controls and procedures and reports on any changes in internal control over financial reporting [Disclosure Controls and Procedures](index=28&type=section&id=Disclosure%20Controls%20and%20Procedures) - As of June 30, 2020, management, under the direction of the CEO and CFO, determined that the company's **disclosure controls and procedures** were effective[131](index=131&type=chunk) [Changes in Internal Control Over Financial Reporting](index=28&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - There were no changes in **internal control over financial reporting** during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's **internal control over financial reporting**[132](index=132&type=chunk) [Part II - Other Information](index=28&type=section&id=Part%20II%20-%20Other%20Information) [Item 1 - Legal Proceedings](index=28&type=section&id=Item%201%20-%20Legal%20Proceedings) This section provides updates on significant legal proceedings involving Microbot Medical Inc., including litigation related to its 2017 financing and a separate action to recover short-swing profits [Litigation Resulting from 2017 Financing](index=29&type=section&id=Litigation%20Resulting%20from%202017%20Financing) - The company lost an appeal in the **Sabby litigation**, leading to the rescission of a 2017 **Securities Purchase Agreement (SPA)** for Sabby and a payment of approximately **$3.7 million**[136](index=136&type=chunk) - A new lawsuit by **Empery Asset Master Ltd.** and others seeks rescission of the **SPA** and return of **$6.75 million** from the same 2017 financing, with the company's motion to dismiss currently pending[136](index=136&type=chunk) [Alliance Litigation](index=29&type=section&id=Alliance%20Litigation) - Microbot initiated an action against **Alliance Investment Management, Ltd.** to compel disgorgement of approximately **$468 thousand** in **short-swing profits**[137](index=137&type=chunk) - **Joseph Mona**, identified as the beneficial owner of shares traded by Alliance, filed a counterclaim against Microbot for **$150,954** in **net losses**, alleging company misrepresentations[140](index=140&type=chunk) - Motions for judgment on Microbot's claim against **Mona** and to dismiss **Mona's** counterclaim are pending, with a court appearance scheduled for October 13, 2020[141](index=141&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) As a Smaller Reporting Company, Microbot Medical Inc. is not required to provide a detailed discussion of risk factors in this quarterly report - The company is a **Smaller Reporting Company** and is **not required to provide risk factors** in this filing[144](index=144&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds to report for the period - There were no **unregistered sales of equity securities** and **use of proceeds** to report[145](index=145&type=chunk) [Item 3 – Defaults Upon Senior Securities](index=30&type=section&id=Item%203%20%E2%80%93%20Defaults%20Upon%20Senior%20Securities) This section indicates that there were no defaults upon senior securities to report for the period - There were **no defaults upon senior securities** to report[145](index=145&type=chunk) [Item 4 – Mine Safety Disclosures](index=30&type=section&id=Item%204%20%E2%80%93%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to Microbot Medical Inc.'s operations - **Mine safety disclosures are not applicable** to the company[145](index=145&type=chunk) [Item 5 - Other Information](index=30&type=section&id=Item%205%20-%20Other%20Information) This section indicates that there is no other information to report for the period - There is **no other information to report**[146](index=146&type=chunk) [Item 6 – Exhibits](index=30&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists the exhibits furnished as part of the report, including certifications from the CEO and CFO, and XBRL taxonomy extensions - The report includes **certifications** from the **Chairman, President, and CEO** (**Harel Gadot**) and the **Chief Financial Officer** (**David Ben Naim**) as exhibits[147](index=147&type=chunk) - **XBRL Instance**, **Taxonomy Extension Schema**, **Calculation**, **Definition**, **Labels**, and **Presentation files** are furnished as exhibits[147](index=147&type=chunk) [Signatures](index=31&type=section&id=Signatures) This section contains the duly authorized signatures of Microbot Medical Inc.'s principal executive officer and principal financial and accounting officer, affirming the submission of the report - The report is signed by **Harel Gadot**, **Chairman, President and Chief Executive Officer**, and **David Ben Naim**, **Chief Financial Officer**, on **August 14, 2020**[149](index=149&type=chunk)[151](index=151&type=chunk) ```

Financial Performance - The net loss for the three months ended March 31, 2020, was $2,205,000, compared to a net loss of $1,961,000 for the same period in 2019, indicating an increase in loss of about 12.4%[11] - The company reported a basic and diluted net loss per share of $0.31 for the three months ended March 31, 2020, compared to $0.48 for the same period in 2019, showing an improvement of about 35.4%[11] - The company experienced net cash flows from operating activities of $(5,921,000) for the three months ended March 31, 2020, compared to $(2,723,000) for the same period in 2019, indicating a worsening cash flow situation[21] - The net loss for the three months ended March 31, 2020, was $2,205,000, compared to a net loss of $1,961,000 for the same period in 2019, reflecting an increase in losses[11] - The company reported net cash flows from operating activities of $(5,921,000) for the three months ended March 31, 2020, compared to $(2,723,000) for the same period in 2019, indicating a significant increase in cash outflows[21] Assets and Liabilities - As of March 31, 2020, total assets decreased to $31,298,000 from $37,126,000 as of December 31, 2019, representing a decline of approximately 15.7%[9] - Total current liabilities decreased significantly to $927,000 as of March 31, 2020, from $4,826,000 as of December 31, 2019, a reduction of approximately 80.8%[9] - The total stockholders' equity decreased to $29,678,000 as of March 31, 2020, down from $31,540,000 as of December 31, 2019, a decline of approximately 5.9%[9] - The company's total liabilities decreased to $1,620,000 as of March 31, 2020, from $5,586,000 as of December 31, 2019[9] - Total current assets decreased to $30,103,000 as of March 31, 2020, from $35,936,000 as of December 31, 2019[9] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $29,585,000, an increase from $28,771,000 at the end of 2019, representing a growth of about 2.8%[9] - As of March 31, 2020, the company had unrestricted cash and cash equivalents of approximately $29,661,000, which is expected to fund operations for more than 12 months[29] - The company reported cash, cash equivalents, and restricted cash at the beginning of the period as $33,129,000, down to $29,661,000 at the end of the period, indicating a decrease of approximately 11.8%[21] Research and Development - Research and development expenses increased to $691,000 for the three months ended March 31, 2020, up from $587,000 in the same period of 2019, reflecting a growth of approximately 17.7%[11] - The company expects to continue incurring additional losses due to ongoing research and development activities, indicating a need for potential future capital raises through debt or equity securities[30] - The company has received grants from the Israeli Innovation Authority totaling approximately $1,500, with a royalty obligation of 3%-3.5% of future sales[54] - The Company is collaborating with Washington University on a research agreement with total expected costs of approximately $248, ongoing until March 15, 2021[58] - The Company has a research agreement with Wayne State University with total expected costs of approximately $343 for ongoing phases of research[60] Compensation and Salaries - The CEO's annual base salary was increased from $360,000 to $450,000, retroactive to January 1, 2020[78] - The company recognized compensation expenses of $144 related to stock options granted to the CEO as of March 31, 2020[93] - The company recorded a compensation expense of $343,000 for stock-based employee compensation awards for the three months ended March 31, 2020, compared to $315,000 for the same period in 2019[101] - The company incurred share-based compensation expenses of $343,000 for the three months ended March 31, 2020, compared to $315,000 for the same period in 2019, reflecting a 8.9% increase[21] - The Company had approximately $2,267,000 of total unrecognized compensation costs related to unvested share-based compensation awards, expected to be recognized over a weighted average period of 1.11 years[98] Stock Options and Shares - As of March 31, 2020, the total outstanding stock options increased to 537,061 from 371,360 at the beginning of the period, with a weighted average exercise price of $9.35[100] - The aggregate intrinsic value of outstanding options as of March 31, 2020, was $456,000, down from $761,000 in 2019, while the intrinsic value of exercisable options was $446,000 compared to $761,000 in 2019[97] - The weighted average remaining contractual life of outstanding stock options was 7.3 years as of March 31, 2020[100] - The Company granted stock options to purchase 166,666 shares at an exercise price of $9.64 on February 25, 2020[93] - The Company had outstanding warrants totaling 183 as of March 31, 2020, with an exercise price of $2,754.00[103] Legal and Financial Obligations - The company paid approximately $3,700 to Sabby Healthcare Master Fund Ltd. for 83,333 shares of common stock following a lawsuit judgment[65] - The company is seeking to divest approximately $468 in short swing profits from Alliance Investment Management, Ltd.[66] - The Company has no obligation to repay government grants if the research and development projects fail or do not generate sales[55] - The Company is involved in litigation related to a rescinded Securities Purchase Agreement, with a payment of approximately $3,700 made to Sabby Healthcare Master Fund Ltd.[65] - The Company is seeking to recover approximately $468,000 in profits from Alliance Investment Management, Ltd. related to short swing trading violations[66] Business Operations and Market Conditions - The company has not generated any revenues from its operations to date, highlighting its pre-clinical stage in the medical device market[29] - The ongoing COVID-19 pandemic may cause significant delays and disruptions to clinical trials, impacting the company's ability to conduct business effectively[31] - The company may face challenges in raising additional capital due to market demand and business risks[30] - The Company is focused on developing next-generation micro-robotics assisted medical technologies targeting minimally invasive surgery, aiming to redefine surgical robotics and improve patient outcomes[23] - The Company is focused on developing next-generation micro-robotics assisted medical technologies targeting minimally invasive surgery, aiming to improve surgical outcomes[23]

PART I [Business](index=4&type=section&id=Item%201.%20Business) Microbot Medical Inc. develops micro-robotic endoluminal surgery devices, focusing on SCS for hydrocephalus and Liberty for endovascular procedures [Company Overview](index=4&type=section&id=The%20Company) Microbot is a pre-clinical medical device company focused on developing robotic endoluminal surgery devices, including SCS and Liberty systems - Microbot is a pre-clinical medical device company specializing in the research, design, and development of next-generation robotic endoluminal surgery devices[18](index=18&type=chunk) - The company's main product development efforts are focused on the Self Cleaning Shunt (SCS) for hydrocephalus and the Liberty™ system, a fully disposable robot for endovascular procedures[19](index=19&type=chunk) - The company's intellectual property portfolio consists of **37 issued/allowed patents** and **15 pending patent applications** worldwide[20](index=20&type=chunk) [Technological Platforms](index=4&type=section&id=Technological%20Platforms) The company's technology is built on four main platforms: ViRob, TipCAT, CardioSert, and Liberty, integrating acquired and developed systems for endoluminal procedures - ViRob is an autonomous crawling micro-robot designed to navigate within human body spaces like blood vessels and is the basis for the SCS product[23](index=23&type=chunk) - TipCAT is a self-propelled locomotive device using interconnected balloons for forward motion in tubular anatomies, designed to reduce lumen damage[25](index=25&type=chunk) - CardioSert technology, acquired in May 2018, features a guidewire delivery system with controllable tip curvature and stiffness, initially for cardiology but with potential in neurosurgery[26](index=26&type=chunk) - Liberty, unveiled in January 2020, is a compact, fully disposable robotic system for endovascular procedures, designed to be operated remotely and reduce radiation exposure for physicians[28](index=28&type=chunk) [Product Pipeline](index=8&type=section&id=Our%20Product%20Pipeline) The company's pipeline is led by the Self-Cleaning Shunt (SCS) for hydrocephalus and the Liberty robotic system for endovascular interventions - The Self-Cleaning Shunt (SCS) is designed to be a universal ventricular catheter component that uses an internal robotic mechanism to prevent blockages in CSF shunts[47](index=47&type=chunk)[48](index=48&type=chunk) - Pre-clinical in-vitro studies for the SCS have shown its potential to prevent shunt occlusion, and follow-up studies are underway to validate safety and efficacy for regulatory submissions[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - The Liberty robotic system is a fully disposable, compact system for endovascular procedures, designed to reduce capital equipment needs and improve operator safety, featuring a 'One & Done' tool combining a guidewire and microcatheter[58](index=58&type=chunk) - The company plans to commence animal trials for the Liberty device as early as Q1 2021, with a potential FDA submission in Q4 2021[59](index=59&type=chunk) [Competition](index=13&type=section&id=Competition) Microbot faces competition for its SCS device from Anuncia Inc. and Aqueduct Neurosciences, and for its Liberty system from Corindus Vascular Robotics and others - The SCS device faces potential direct competition from Anuncia Inc.'s Alivio ReFlow™ Ventricular System and non-direct competition from Aqueduct Neurosciences' non-shunt technology[67](index=67&type=chunk) - The primary competitor for the Liberty robotic system is the CorPath GRX system from Corindus Vascular Robotics (Siemens); other competitors include Robocath and Hansen Medical (J&J)[71](index=71&type=chunk) - The company believes existing robotic systems have drawbacks such as being cumbersome, requiring significant capital expenditure, and having limited maneuverability, which Liberty aims to address[71](index=71&type=chunk) [Intellectual Property](index=14&type=section&id=Intellectual%20Property) The company's intellectual property strategy relies on licensed technology, internal development, patents, and trade secrets, with 37 issued/allowed patents and 15 pending applications - The company holds an IP portfolio of **37 issued/allowed patents** and **15 pending applications** worldwide[74](index=74&type=chunk) - The SCS and TipCAT technologies are exclusively licensed from TRDF, requiring meeting development milestones, including commencing first-in-human clinical trials by December 2021, to avoid termination[81](index=81&type=chunk) - Under the TRDF agreement, Microbot is obligated to pay royalties of **1.5% to 3.0%** on net sales of licensed products[82](index=82&type=chunk) - The company's issued U.S. patents covering its product candidates will expire between **2026 and 2033**[80](index=80&type=chunk) [Research and Development](index=15&type=section&id=Research%20and%20Development) Research and development is a primary focus, with expenses increasing to **$3.0 million** in 2019 from **$2.5 million** in 2018, supported by Israeli Innovation Authority grants Research and Development Expenses | Expense Category | 2019 | 2018 | | :--- | :--- | :--- | | Research and Development | $3,048,000 | $2,515,000 | - The company has received approximately **$1.5 million** in grants from the Israeli Innovation Authority (IIA) through December 31, 2019. These grants are repayable via royalties of **3%-3.5%** on future sales[86](index=86&type=chunk) - The company has submitted existing SCS animal trial data to the FDA in a pre-submission meeting to seek an Early Feasibility Study (EFS), with a goal to commence controlled human trials under an EFS as early as Q3 2022[94](index=94&type=chunk) [Government Regulation](index=18&type=section&id=Government%20Regulation) Microbot's products are subject to extensive regulation by the FDA in the U.S. and similar authorities abroad, with expected classification as Class II medical devices - Products are subject to extensive regulation by the U.S. Food and Drug Administration (FDA) under the Federal Food, Drug, and Cosmetic Act (FDCA)[103](index=103&type=chunk) - The company expects its products to be classified as Class II devices, requiring either a 510(k) premarket notification or a de novo clearance from the FDA before commercial distribution[109](index=109&type=chunk) - For commercialization in Europe, a CE Mark certificate is required, which verifies compliance with the Medical Device Regulation (MDR 2017/745)[130](index=130&type=chunk) - In Israel, medical devices must be registered with the Ministry of Health (MOH) through its AMAR department, a process that is expedited if the device has approval from a 'recognized' country like the U.S. or E.U[131](index=131&type=chunk)[132](index=132&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks, including operating losses, need for additional capital, COVID-19 disruptions, development and regulatory hurdles, and intellectual property challenges [Risks Relating to Financial Position and Need for Additional Capital](index=25&type=section&id=Risks%20Relating%20to%20Microbot's%20Financial%20Position%20and%20Need%20for%20Additional%20Capital) Microbot is a development-stage company with no revenue and a history of significant operating losses, requiring additional funding to support its development programs - The company has incurred significant operating losses since inception, generates no revenue, and may never achieve or sustain profitability[140](index=140&type=chunk)[141](index=141&type=chunk) - Additional funding will be needed to continue operations, and an inability to raise capital on attractive terms could force the company to delay, reduce, or eliminate product development or commercialization[145](index=145&type=chunk)[146](index=146&type=chunk) - The COVID-19 pandemic may cause significant disruptions to clinical trials, patient enrollment, and supply chains, which could materially adversely affect the business[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) [Risks Relating to the Development and Commercialization of Product Candidates](index=28&type=section&id=Risks%20Relating%20to%20the%20Development%20and%20Commercialization%20of%20Microbot's%20Product%20Candidates) The company's success is heavily dependent on its lead candidates, SCS and Liberty, facing risks from inconclusive trials, regulatory hurdles, competition, and reliance on third-party manufacturers - Interim data from the SCS animal trial was inconclusive for assessing safety, leading the company to seek an Early Feasibility Study (EFS) from the FDA, which may not be granted[154](index=154&type=chunk)[156](index=156&type=chunk) - The FDA may not agree with the company's classification of the SCS as a Class II device, potentially requiring a more burdensome De Novo or PMA submission process, which would increase costs and delay commercialization[166](index=166&type=chunk)[167](index=167&type=chunk) - The acquired CardioSert technology is subject to a buy-back clause if commercialization deadlines (starting January 2021) are not met, which could jeopardize the Liberty device development[171](index=171&type=chunk)[172](index=172&type=chunk) - The company relies on third-party manufacturers, which entails risks related to supply availability, quality control, and potential termination of agreements[181](index=181&type=chunk) [Risks Relating to Intellectual Property](index=40&type=section&id=Risks%20Relating%20to%20Microbot's%20Intellectual%20Property) The company's rights to develop SCS and TipCAT depend on a TRDF license, which can be terminated if development milestones are not met, alongside risks of litigation and patent protection challenges - The license for SCS and TipCAT technologies from TRDF requires meeting development milestones, including commencing first-in-human clinical trials by December 2021, to avoid termination of the license[213](index=213&type=chunk) - The medical device industry is characterized by extensive intellectual property litigation, which could lead to significant expenses and prevent the sale of products[219](index=219&type=chunk) - The company's success depends on its ability to obtain and maintain patent protection and trade secrets for its technologies, which is a lengthy and costly process with no guarantee of success[220](index=220&type=chunk)[221](index=221&type=chunk) [Risks Relating to Operations in Israel](index=42&type=section&id=Risks%20Relating%20to%20Operations%20in%20Israel) Microbot's operations in Israel expose it to regional instability, foreign currency exchange risk, restrictions from government grants, and employee military reserve duty obligations - Political, economic, and military conditions in Israel, where the company has facilities and key personnel, could directly and adversely affect operations[227](index=227&type=chunk) - A significant portion of expenses are in New Israeli Shekels (NIS), exposing the company to foreign currency exchange rate fluctuations against the U.S. dollar[230](index=230&type=chunk) - Funding from the Israeli Innovation Authority (approx. **$1.5 million** through 2019) comes with restrictions on transferring technology or manufacturing outside Israel and requires royalty payments on future sales[234](index=234&type=chunk)[235](index=235&type=chunk) [Properties](index=46&type=section&id=Item%202.%20Properties) Microbot does not own real property, with its principal executive office in Hingham, Massachusetts, and leased facility space in Yokneam, Israel - The company's principal executive office is at 25 Recreation Drive, Unit 108, Hingham, MA 02043[246](index=246&type=chunk) - The company leases approximately **6,975 square feet** of facility space in Yokneam, Israel[246](index=246&type=chunk) [Legal Proceedings](index=46&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in significant litigation, including a **$3.7 million** payment for a rescinded 2017 financing, a new **$6.75 million** lawsuit from other investors, and a short-swing profit lawsuit with a counterclaim - Following a lost appeal, the company paid approx. **$3.7 million** to Sabby entities to rescind their participation in a June 2017 financing[248](index=248&type=chunk) - The company is now being sued by other investors from the same 2017 financing (Empery and Hudson Bay) who are seeking the return of their **$6.75 million** purchase price[248](index=248&type=chunk) - The company has sued Alliance Investment Management to disgorge approx. **$480,000** in alleged short-swing profits, which has led to a counterclaim against Microbot by Joseph Mona[249](index=249&type=chunk)[253](index=253&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=47&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ under 'MBOT' with approximately **150** record holders, no history of cash dividends, and details on equity compensation plans - The company's common stock trades on the NASDAQ Capital Market under the symbol 'MBOT'[259](index=259&type=chunk) - As of April 9, 2020, there were approximately **150** holders of record of the common stock[260](index=260&type=chunk) - The company has never paid cash dividends and does not plan to in the foreseeable future[261](index=261&type=chunk) Securities Available for Issuance Under Equity Compensation Plans | Plan Category | Securities to be issued upon exercise | Weighted-average exercise price | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 230,972 | $13.4 | 252,357 | | Equity compensation plans not approved by security holders | 140,388 | $2.3 (calculated) | - | | **Total** | **371,360** | | **252,357** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Microbot, a pre-clinical medical device company, reported a net loss of **$7.2 million** in 2019, with increased R&D expenses and decreased G&A expenses, and a working capital of **$31.1 million** [Results of Operations](index=52&type=section&id=Results%20of%20Operations) For the year ended December 31, 2019, research and development expenses increased by **$533,000** to **$3.05 million**, while general and administrative expenses decreased by **$537,000** to **$4.19 million** Operating Expenses Summary | (in thousands) | 2019 | 2018 | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Research and development expenses | $3,048 | $2,515 | $533 | | General and administrative expenses | $4,192 | $4,729 | $(537) | | Financing (income) expenses, net | $103 | $16 | $87 | | Capital (Gain) Loss | $(96) | $- | $(96) | - The increase in R&D expenses in 2019 was primarily due to an increase in materials and professional services[288](index=288&type=chunk) - The decrease in G&A expenses in 2019 was primarily due to lower share-based compensation and public relations costs[289](index=289&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2019, Microbot had working capital of approximately **$31.1 million**, believing it sufficient for at least **24 months**, though pending litigation could impact this - As of December 31, 2019, the company had net working capital of approximately **$31,110,000**[292](index=292&type=chunk) - The company believes its cash will be sufficient to fund operations for at least **24 months**, but notes that losing the pending litigation for **$6.75 million** could reduce this period[295](index=295&type=chunk) Cash Flow Summary | (in thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Net cash used in operating activities | $(6,451) | $(5,310) | | Net cash used in investing activities | $(2,453) | $(223) | | Net cash from financing activities | $36,770 | $(18) | | **Net increase (decrease) in cash** | **$27,866** | **$(5,551)** | [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are interest rate sensitivity on cash and foreign exchange rate fluctuations due to expenses in non-U.S. dollar currencies - The company's primary market risk is interest income sensitivity on its cash and cash equivalents, but due to their short-term nature, the impact of rate changes is expected to be minimal[301](index=301&type=chunk) - The company is exposed to foreign exchange risk as a significant portion of its operating expenses are payable in currencies other than the U.S. dollar[302](index=302&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2019, with no material changes in the last fiscal quarter - Management concluded that as of December 31, 2019, the company's disclosure controls and procedures were effective[307](index=307&type=chunk) - Management concluded that as of December 31, 2019, the company's internal control over financial reporting was effective[308](index=308&type=chunk) - There were no changes in internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[310](index=310&type=chunk) PART III [Directors, Executive Officers, and Corporate Governance](index=55&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2020 Proxy Statement - The information required by this item is incorporated by reference from the company's 2020 Proxy Statement[313](index=313&type=chunk) [Executive Compensation](index=55&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding director and executive compensation is incorporated by reference from the company's 2020 Proxy Statement - The information required by this item is incorporated by reference from the company's 2020 Proxy Statement[315](index=315&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=56&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the company's 2020 Proxy Statement - The information required by this item is incorporated by reference from the company's 2020 Proxy Statement[316](index=316&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=56&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's 2020 Proxy Statement, listing independent board members - The information required by this item is incorporated by reference from the company's 2020 Proxy Statement[317](index=317&type=chunk) - The independent directors are listed as Messrs. Waizer, Bornstein, Burell, Madden and Laxminarain, and Ms. Aileen Stockburger[319](index=319&type=chunk) [Principal Accountant Fees and Services](index=56&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2020 Proxy Statement - The information required by this item is incorporated by reference from the company's 2020 Proxy Statement[320](index=320&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=56&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed as part of the Annual Report on Form 10-K, including corporate governance documents and material contracts - This item lists the financial statements and exhibits filed as part of the Form 10-K[322](index=322&type=chunk) Financial Statements [Consolidated Balance Sheets](index=62&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2019, total assets increased to **$37.1 million** from **$6.1 million** in 2018, driven by a rise in cash and cash equivalents, with stockholders' equity increasing to **$31.5 million** Balance Sheet Highlights | (U.S. dollars in thousands) | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Total current assets** | **$35,936** | **$5,831** | | Total assets | $37,126 | $6,090 | | **Total current liabilities** | **$4,826** | **$4,760** | | Total liabilities | $5,586 | $4,760 | | **Total stockholders' equity** | **$31,540** | **$1,330** | | Total liabilities and stockholders' equity | $37,126 | $6,090 | [Consolidated Statements of Operations](index=63&type=section&id=Consolidated%20Statements%20of%20Operations) For the year ended December 31, 2019, the company reported a net loss of **$7.247 million**, nearly identical to 2018, with a basic and diluted net loss per share of **$1.70** Statements of Operations Summary | (U.S. dollars in thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Research and development | $3,048 | $2,515 | | General and administrative | $4,192 | $4,729 | | **Operating loss** | **$(7,240)** | **$(7,244)** | | **Net loss** | **$(7,247)** | **$(7,260)** | | Basic and diluted net loss per share | $(1.70) | $(2.41) | [Consolidated Statements of Cash Flows](index=66&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the year ended December 31, 2019, net cash used in operating activities was **$6.5 million**, while net cash provided by financing activities was **$36.8 million**, resulting in a **$27.9 million** increase in cash Cash Flow Activities | (U.S. dollars in thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Net cash used in operating activities | $(6,451) | $(5,310) | | Net cash used in investing activities | $(2,453) | $(223) | | Net cash from financing activities | $36,770 | $(18) | | **Increase (decrease) in cash, cash equivalents and restricted cash** | **$27,866** | **$(5,551)** | | Cash, cash equivalents and restricted cash at end of period | $33,129 | $5,263 | [Notes to Consolidated Financial Statements](index=67&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business risks, and financial line items, including the company's pre-revenue status, government grant obligations, significant litigation, and 2019 equity offerings - The company has not generated revenues and management believes its cash balance of **$28.7 million** as of Dec 31, 2019 is sufficient to fund operations for more than 12 months (Note 1)[361](index=361&type=chunk) - The company is obligated to pay royalties of **3%-3.5%** on future sales up to the grant amount of approx. **$1.5 million** received from the Israeli Innovation Authority (IIA) (Note 8)[418](index=418&type=chunk) - The company is a defendant in a lawsuit seeking the return of a **$6.75 million** investment from a 2017 financing, following a prior adverse judgment that resulted in a payment of approx. **$3.7 million** to another investor from the same financing (Note 8)[428](index=428&type=chunk) - In 2019, the company raised gross proceeds of approximately **$28 million** through multiple registered direct offerings of common stock and warrants (Note 9)[445](index=445&type=chunk)[446](index=446&type=chunk)[447](index=447&type=chunk)[448](index=448&type=chunk)[449](index=449&type=chunk)[450](index=450&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2019 [ ] 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: 000-19871 MICROBOT MEDICAL INC. (Name of Registrant in Its Charter) Delaware 94-3078125 State or Other Jurisdicti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2019 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. MICROBOT MEDICAL INC. (Name of Registrant in Its Charter) Delaware 94-3078125 State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 25 Recreat ...

Form 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2019 [ ] 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: 000-19871 MICROBOT MEDICAL INC. (Name of Registrant in Its Charter) Delaware 94-3078125 State or Other Jurisdiction o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2018 [ ] 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: 000-19871 MICROBOT MEDICAL INC. (Exact name of registrant as specified in its charter) Delaware 94-3078125 (State or Other ...