Microbot Medical(US:MBOT)2020-05-15 20:17Financial 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]