Microbot Medical(MBOT) - 2020 Q4 - Annual Report

Financial Performance - Microbot's research and development expenses for the year ended December 31, 2020, were approximately $3,396,000, an increase of $348,000 from $3,048,000 in 2019[296]. - General and administrative expenses rose to approximately $5,693,000 in 2020, up by $1,501,000 from $4,192,000 in 2019, primarily due to increased salaries and public relations expenses[297]. - Net cash flows from operating activities for 2020 were $(7,252,000), an increase from $(6,451,000) in 2019, primarily due to higher net losses[307]. - Net cash flows from investing activities decreased to $(2,768,000) in 2020 from $(2,453,000) in 2019, mainly due to net purchases of marketable securities[309]. - Financing activities saw a decrease in cash flow to $(3,375,000) in 2020, compared to an inflow of $36,770,000 in 2019 due to litigation outcomes[309]. Capital and Funding - As of December 31, 2020, Microbot had a net working capital of approximately $23,908,000, consisting mainly of cash and cash equivalents[300]. - Since inception, Microbot has raised net cash proceeds of approximately $54,770,000 and incurred a total cumulative loss of approximately $44,280,000[302]. - Microbot plans to raise up to $75 million through future issuances of debt and/or equity securities, which may lead to shareholder dilution[305]. Research and Development - Microbot has received approximately $1,500,000 in grants from the Israeli Innovation Authority for research and development, with a royalty obligation of 3%-3.5% on future sales[303]. - The company expects its research and development expenses to continue increasing as it advances its development programs and begins pre-clinical and clinical trials[296]. - Microbot's LIBERTY robotic system is believed to be the world's first fully disposable robotic system for endovascular interventional procedures, with successful feasibility study results[282][283]. - The company is developing the Self Cleaning Shunt for hydrocephalus treatment using its ViRob platform[277]. - Microbot's patent portfolio includes 42 issued/allowed patents and 23 pending applications worldwide[278]. Operational Risks - A significant portion of Microbot's operating expenses is payable in currencies other than the U.S. dollar, exposing the company to foreign exchange risks[311]. - Microbot may use financial instruments like forward foreign currency contracts to manage foreign currency exposure, but these may not adequately mitigate risks[312]. - Inflation has increased clinical trial costs for Microbot, but it has not significantly impacted the company's results of operations[313]. Future Expectations - The company anticipates that general and administrative expenses may increase as it expands its operating activities and maintains compliance with public company requirements[287].