Executive Summary / Key Takeaways

• Microbot Medical is a pre-commercial, clinical-stage medical device company focused on disrupting the endovascular robotic surgery market with its differentiated, disposable LIBERTY® system.
• The core investment thesis hinges on the successful commercialization of LIBERTY, which offers potential advantages like reduced radiation exposure, lower costs, and enhanced maneuverability compared to existing robotic or manual techniques.
• A critical near-term catalyst is the anticipated FDA 510(k) marketing clearance for LIBERTY during the second quarter of 2025, which would enable U.S. commercial launch shortly thereafter.
• The company has significantly strengthened its balance sheet through recent equity raises, reporting approximately $30.39 million in cash and marketable securities as of March 31, 2025, providing a cash runway exceeding twelve months from the May 14, 2025 filing date to support pre-commercial and initial commercial activities.
• Key risks include the inherent uncertainty of regulatory timelines, the need for future funding to support full-scale commercialization, and potential operational impacts from the ongoing geopolitical situation in Israel, where the company's R&D is primarily based.

The Dawn of Disposable Robotics in Endovascular Surgery

Microbot Medical Inc. is carving out a niche in the rapidly evolving field of robotic-assisted surgery, specifically targeting the endovascular space. Evolving from its roots as StemCells, Inc., a company focused on cell-based therapies for CNS disorders, Microbot Medical underwent a transformative merger in late 2016, pivoting its strategic focus entirely to medical robotics. This shift positioned the company as a pre-commercial, clinical-stage innovator aiming to redefine minimally invasive procedures through advanced micro-robotic technologies.

The company's overarching strategy centers on leveraging its proprietary robotic platforms to improve surgical outcomes, enhance physician safety and comfort, and potentially reduce procedure costs. This vision is embodied in its primary asset, the LIBERTY Endovascular Robotic Surgical System. Unlike large, expensive, reusable robotic systems that require dedicated infrastructure, LIBERTY is designed to be the first fully disposable robot for endovascular interventions. This fundamental design choice underpins Microbot's strategy to lower traditional barriers to robotic adoption, potentially making advanced robotic assistance accessible to a wider range of hospitals and clinics.

Technological Differentiation: The Disposable Edge

At the heart of Microbot Medical's investment narrative lies its differentiated technology, particularly the LIBERTY system. This system is engineered to maneuver guidewires and over-the-wire devices like microcatheters within the body's vasculature, a critical capability in numerous endovascular procedures.

The tangible benefits of LIBERTY's design are manifold and, if realized commercially, could provide a significant competitive edge:

• Compact and Mobile: Its small size eliminates the need for large capital equipment and dedicated cath-lab rooms, offering flexibility and potentially lower infrastructure costs for healthcare facilities.
• Fully Disposable: This is a key differentiator. Being fully disposable aims to reduce or eliminate the need for costly and time-consuming sterilization processes associated with reusable systems. While specific quantitative cost savings per procedure were not detailed, the strategic intent is clearly to offer a more economically attractive option.
• Enhanced Safety and Comfort: The system is designed for remote operation, aiming to significantly reduce the physician's exposure to ionizing radiation and alleviate the physical strain associated with wearing heavy lead vests during procedures. A recent presentation of pivotal trial data highlighted a 92% reduction in radiation exposure, a compelling quantifiable benefit for clinical staff.
• State-of-the-Art Maneuverability: LIBERTY provides precise linear and rotational control of guidewires, guide catheters, and microcatheters, which is crucial for navigating complex vascular anatomy. Preclinical studies have demonstrated high success rates, with one pivotal study achieving 100% robotic navigation success in reaching animal targets.
• Compatibility: The system is designed to be compatible with a wide range of commercially available guidewires, microcatheters, and guide-catheters, easing integration into existing clinical workflows.
• Potential for "One & Done" Procedures: Compatibility with technologies like Microbot's acquired NovaCross platform (intraluminal revascularization devices with integrated microcatheter) could streamline procedures, potentially reducing the number of devices needed.
• Telemedicine Capability: While still under evaluation and not part of the current 510(k) submission, the system's remote control design offers the potential for tele-catheterization, expanding access to specialized procedures. A collaboration with Corewell Health demonstrated the feasibility of using LIBERTY remotely over a distance of 5 miles in a coronary simulation model.

Microbot's R&D efforts have progressed LIBERTY through extensive preclinical testing, demonstrating high success rates and safety. The successful outcomes from the pivotal preclinical study in late 2023 were instrumental in supporting regulatory submissions. The acquisition of Nitiloop's assets, including the NovaCross technology, further enhances Microbot's portfolio with complementary intraluminal devices, potentially strengthening the value proposition of the LIBERTY system. While other earlier-stage projects like the Self-Cleaning Shunt and TipCAT were suspended or returned to their source as part of a strategic focus on core business (LIBERTY), the NovaCross acquisition represents a targeted expansion adjacent to the endovascular robotics platform.

The "so what" for investors is that this technological differentiation, particularly the disposable nature and potential for enhanced safety and efficiency, could create a competitive moat for Microbot Medical in the endovascular robotics market. If these benefits resonate with healthcare providers, it could drive adoption, contribute to higher potential gross margins (by reducing hospital costs), and support market share capture against larger, more established players.

Path to Commercialization: Regulatory Milestones

As a pre-commercial company, Microbot Medical's journey is punctuated by critical regulatory milestones. The company has been diligently pursuing the necessary approvals to bring LIBERTY to market. Following successful preclinical studies and a human trial, Microbot submitted its 510(k) premarket notification to the FDA in December 2024.

The most significant near-term catalyst for the company is the anticipated FDA marketing clearance for LIBERTY during the second quarter of 2025. Achieving this clearance is paramount, as it would allow Microbot to commence U.S. commercialization activities shortly thereafter. This transition from a clinical-stage to a commercial-stage company is a pivotal moment that could fundamentally alter the investment profile.

Beyond the U.S., Microbot is also pursuing regulatory approvals internationally. The company received ISO 13485 certification in August 2024, a crucial step supporting future CE Mark approval, which is anticipated in the second half of 2026. This certification indicates that Microbot's quality management system meets the stringent requirements for developing and manufacturing regulated medical products in Europe and other regions.

The successful navigation of these regulatory pathways is essential for Microbot to monetize its technology and begin generating revenue. The timelines, while guided by company expectations, are subject to the inherent unpredictability of regulatory bodies like the FDA and European notified bodies.

Competitive Positioning: Battling Giants with Agility

The medical robotic surgery market is dominated by large, well-capitalized players. Key competitors in the broader robotic-assisted surgery space include Intuitive Surgical (ISRG), Medtronic (MDT), Stryker Corporation (SYK), and Johnson & Johnson (JNJ). These companies have established systems, extensive distribution networks, and significant financial resources.

However, Microbot aims to compete by focusing on a specific niche – endovascular procedures – and offering a fundamentally different approach with its disposable LIBERTY system. While competitors like ISRG offer versatile, multi-specialty reusable systems with high upfront costs (e.g., da Vinci systems costing $1-2 million), MBOT's disposable model targets lower operating costs per procedure. The competitive analysis suggests MBOT's technology could offer 20-30% lower operating costs per procedure and 15-20% quicker setup times compared to some reusable systems, potentially making it attractive to cost-sensitive institutions or those lacking the infrastructure for large robotic suites.

Against MDT and JNJ, which also have robotic initiatives, MBOT's focus on disposability could offer 25-40% greater efficiency in procedure-specific applications by reducing sterilization needs. While MDT and JNJ boast vast global distribution and integrated portfolios, MBOT's agility and targeted endovascular focus, potentially offering 30% faster processing speeds for specific procedures, could allow it to capture market share in underserved segments.

Microbot also has a strategic partnership with SYK, a major player in surgical tools and robotics. This collaboration could potentially blur competitive lines in certain areas while enabling co-development and leveraging Stryker's market reach. The competitive analysis suggests this partnership could lead to 20% better capital efficiency for MBOT and potential shared revenue opportunities.

Microbot's competitive advantages, or moats, lie primarily in its proprietary micro-robotic technology and its growing patent portfolio (42 patents). The disposable nature and specific performance metrics of LIBERTY are key differentiators. However, the company faces significant disadvantages due to its small scale (21 employees) and pre-commercial status, leading to potentially higher customer acquisition costs and slower development cycles compared to its multi-billion dollar rivals.

Overall, Microbot is positioned as an innovative challenger in a market dominated by giants. Its strategy is to leverage technological differentiation and agility to capture a specific, high-value niche. Success will depend on demonstrating the clinical and economic value of LIBERTY to healthcare providers and effectively executing its commercialization strategy against well-entrenched competitors.

Financial Performance & Liquidity: Fueling the Journey

As a pre-commercial company, Microbot Medical has not generated revenue from its operations to date. Its financial profile is characterized by significant investments in research and development and general and administrative activities necessary to advance its technology and prepare for commercialization.

For the three months ended March 31, 2025, the company reported a net loss of $2.60 million, compared to a net loss of $2.37 million for the same period in 2024. Research and development expenses, net, increased to $1.46 million in Q1 2025 from $1.17 million in Q1 2024, primarily driven by increased payroll and manufacturing costs related to the LIBERTY product as the company shifts towards commercialization. General and administrative expenses also rose to $1.56 million in Q1 2025 from $1.22 million in Q1 2024, mainly due to increases in payroll, professional services, rent, and travel.

Notably, the company recorded $316,000 in other income in Q1 2025, stemming from a favorable appellate court judgment in the Mona litigation. Financing income, net, also increased significantly to $104,000 in Q1 2025 from $13,000 in Q1 2024, reflecting higher interest income earned on increased cash and marketable securities balances.

Microbot's operations have historically resulted in negative cash flows. For the three months ended March 31, 2025, net cash flows used in operating activities were $2.87 million, an increase from $2.42 million used in the same period in 2024. This higher cash burn reflects the increased R&D and G&A expenses associated with pre-commercialization efforts. Net cash flows used in investing activities were substantial at $24.83 million in Q1 2025, primarily due to significant purchases of marketable securities, utilizing the capital raised early in the year.

To fund these activities and prepare for commercial launch, Microbot has been active in the capital markets. Since January 1, 2025, the company has raised significant gross proceeds:

• Approximately $1.10 million through its At-the-Market (ATM) agreement in January 2025.
• Approximately $15.60 million from a registered direct offering in January 2025.
• Approximately $13.00 million from a registered direct offering in February 2025.
• Approximately $916,000 from the exercise of Series E warrants in January 2025.
• Approximately $2.30 million from the exercise of Series E and F warrants in April 2025.
• Approximately $262,500 from the exercise of Series F warrants in May 2025.

These capital raises have dramatically improved the company's liquidity position. As of March 31, 2025, Microbot held approximately $3.22 million in cash and cash equivalents and $27.17 million in marketable securities, totaling approximately $30.39 million (excluding restricted cash). This resulted in a net working capital of approximately $28.80 million, a significant increase from $3.40 million at December 31, 2024.

Management has stated that these available funds are sufficient to fund operations for more than twelve months from the filing date of May 14, 2025. While this provides a runway to reach the anticipated FDA clearance and initial commercialization, the company acknowledges the need for additional funds in the future to support full-scale commercial activities, working capital, and general business purposes. Future capital raises, potentially through debt or equity, could result in further dilution for existing shareholders. The company also benefits from non-dilutive grants from the Israeli Innovation Authority (totaling ~$1.90 million historically) and the Ministry of Economy (~$50,000 received as of March 31, 2025), tied to future royalties on product sales.

The financial performance reflects a company in the critical transition phase from R&D to commercial readiness, heavily reliant on external funding to fuel its progress towards market entry.

Outlook and Risks: Charting the Course Ahead

The immediate outlook for Microbot Medical is dominated by the anticipated FDA marketing clearance for the LIBERTY system in the second quarter of 2025. This milestone is expected to pave the way for the commencement of U.S. commercialization activities. The company has been building its commercial infrastructure, recently appointing a Vice President of Sales and a Vice President of Marketing, signaling its preparation for market entry. Further out, CE Mark approval is targeted for the second half of 2026, which would open up the European market.

While the company's cash position provides a runway for the near term, the long-term outlook includes expectations for increased general and administrative expenses as commercial operations scale up. The need for future capital to support broader commercialization efforts remains a key consideration.

However, the path forward is not without significant risks.

• Regulatory Uncertainty: Despite positive preclinical and human trial data and the 510(k) submission, there is no assurance that the FDA will grant clearance within the anticipated timeline or at all. Similarly, CE Mark approval timelines are not guaranteed. Delays or rejections would significantly impact the company's ability to generate revenue and execute its strategy.
• Financing Risk: The company will require additional funding beyond its current runway to achieve full commercial scale. The ability to raise this capital is dependent on market conditions and the company's stock performance, which is inherently tied to its development and business success. Raising funds through equity could lead to substantial dilution.
• Geopolitical Risk (Israel-Hamas War): A significant portion of Microbot's research and development and other operations are based in Israel. The ongoing military operations and related activities in the region pose potential risks, including disruptions to subcontractors, vendors, and suppliers, as well as challenges with international logistics (importing materials, shipping devices). While the company has not experienced material adverse effects as of the May 14, 2025 filing, any escalation or change in the situation could materially impact its ability to support clinical and regulatory activities. The company has stated it does not have specific contingency plans for such events, highlighting this as a notable vulnerability.
• Commercial Execution Risk: Even with regulatory clearance, successful commercialization in a competitive market requires effective sales, marketing, and distribution capabilities. Microbot, as a new entrant, faces the challenge of competing against established players with deep resources and existing relationships with healthcare providers.

These risks underscore the speculative nature of an investment in Microbot Medical, typical of a pre-commercial medical device company. The potential rewards are tied to the successful execution of its strategy and mitigation of these significant challenges.

Conclusion

Microbot Medical stands at a critical juncture, poised to potentially disrupt the endovascular robotic surgery market with its innovative, disposable LIBERTY system. The investment thesis is centered on the promise of this technology to offer tangible benefits like reduced radiation exposure, enhanced maneuverability, and lower procedural costs, addressing unmet needs in a growing market segment. The recent successful capital raises have provided the necessary financial bridge to reach the anticipated FDA marketing clearance in the second quarter of 2025, a pivotal catalyst that would enable the crucial transition to commercial operations.

While the technological differentiation and the impending regulatory decision present a compelling upside, investors must weigh these against the inherent risks. The uncertainty of regulatory timelines, the need for future funding to support full-scale commercialization, and the potential operational disruptions stemming from the geopolitical situation in Israel are significant factors that could impact the company's trajectory. Microbot's ability to effectively execute its commercial strategy and compete against well-established giants will be paramount post-clearance. The story of Microbot Medical is one of innovation challenging the status quo, with the next few quarters being crucial in determining if its disposable robotic vision can gain traction in a competitive landscape.