Microbot Medical Inc. — Form 10-Q Summary
Reporting period: Three months ended March 31, 2022. Microbot is a pre-clinical medical-device company developing robotic endoluminal surgery technologies. It has not generated operating revenue.
Financial performance and position
| Metric | Q1 2022 | Q1 2021 / prior period |
|---|---|---|
| Revenue | None | None |
| Research and development expense | $1.706 million | $1.119 million |
| General and administrative expense | $1.470 million | $1.273 million |
| Operating loss | $3.176 million | $2.392 million |
| Net loss | $3.189 million | $2.388 million |
| Net loss per share | $0.45 | $0.34 |
| Cash used in operating activities | $3.007 million | $1.994 million |
Amounts are in U.S. dollars. Margins are not meaningful because the company reported no revenue. R&D expense increased primarily with staffing, professional services and LIBERTY-related intellectual-property costs. G&A increased mainly due to payroll, partly offset by lower stock-based compensation and professional-services costs.
- At March 31, cash and cash equivalents were $10.472 million, marketable securities were $1.998 million, and restricted cash was $0.085 million. Unrestricted cash, cash equivalents and marketable securities totaled approximately $12.470 million.
- Net working capital was approximately $11.077 million, down from $13.895 million at December 31, 2021. Total assets were $13.682 million and total liabilities were $2.061 million.
- Total lease liabilities were $0.702 million. The filing reports no cash proceeds from financing activities in either comparison quarter and no conventional borrowing balance in the presented balance sheet.
- Cash, cash equivalents and restricted cash declined by $3.023 million in Q1 2022, versus a $1.729 million decline in Q1 2021. Investing cash use was $0.016 million in 2022; 2021 investing cash inflow included $0.270 million from an investment sale.
Developments, outlook and risks
- Management expects continued losses as development advances and says R&D expenses may rise with further development and trials. It stated that available unrestricted funds were expected to support operations for 12 months from the filing date, but warned that a loss in the Empery/Hudson Bay litigation could reduce runway to less than 12 months. The filing states that substantial doubt exists about the company’s ability to continue as a going concern beyond 12 months.
- The company may seek additional funding through debt or equity offerings, including a $10 million at-the-market facility and offerings under an existing registration statement. No shares had been sold under the ATM facility as of the filing. Financing may be unavailable or dilutive; additional debt could bring repayment obligations and covenants.
- On March 31, 2022, Microbot submitted a pre-submission package to the FDA for its LIBERTY robotic system and expected to meet with the agency to discuss testing and the regulatory pathway. The company continued feasibility animal trials; FDA clearance was not yet reported.
- Microbot and Stryker were defining a development plan to integrate certain Stryker instruments with LIBERTY for neurovascular procedures. Development activities were expected to begin in Q2 2022; each party bears its own costs.
- For the Self Cleaning Shunt, the company said it needed additional clinical input and was seeking U.S. clinical collaborators and investigators for a planned early feasibility study. Development continued to the extent feasible without that input.
- Empery and Hudson Bay seek rescission of a 2017 financing and return of $6.750 million. Discovery was ongoing; management could not estimate the outcome, and no allowance was recorded. The company previously paid approximately $3.700 million to resolve a separate Sabby lawsuit connected with that financing.
- Microbot has contingent royalty obligations on future sales tied to Israeli Innovation Authority grants, generally 3.0%–3.5%, and separate TRDF royalties on net sales and sublicense income. Grant repayment depends on successful development and sales; the filing states no repayment is due if a project fails or produces no sales.
- COVID-19-related disruption, supply-chain and trial delays, foreign-exchange movements, and cash holdings above federally insured limits were among disclosed risks. Management reported effective disclosure controls as of March 31, 2022 and no material change in internal control over financial reporting during the quarter.
Important facts for investors to verify
- Cash burn, development spending and whether subsequent financing extends the stated 12-month runway.
- Status and potential financial impact of the $6.750 million Empery/Hudson Bay claim.
- FDA feedback, required testing and the regulatory timeline for LIBERTY.
- Progress and defined scope of the Stryker collaboration, and clinical input and study planning for the Self Cleaning Shunt.
- Any future equity dilution, debt obligations, or changes in grant-related royalty and repayment exposure.