MBOT — Microbot Medical Inc.

Summary of Microbot Medical's Q2 2017 Earnings Call

1. Key Financial Results and Metrics

• Cash Position: The company reported $13 million in cash, sufficient to fund operations for the next 24 to 30 months.
• Expenses:
  • R&D expenses for the first half of 2017 were approximately $561,000, up from $263,000 in the previous year, primarily due to increased payroll and materials.
  • General and administrative expenses rose to approximately $1.9 million from $140,000, largely due to costs associated with being a public company.
  • Financial expenses increased significantly to about $2.3 million, attributed to accounting transactions related to convertible notes.

2. Strategic Updates and Business Highlights

• Product Development: The company is advancing its Self-Cleaning Shunt and has initiated preclinical studies at Washington University and Wayne State University.
• Technology Platforms: Microbot is focusing on two main platforms: ViRob (an autonomous micro-robot) and TipCAT (a flexible endoscope), both of which have potential applications across various medical fields.
• Market Positioning: The minimally invasive surgical market is projected to grow to $50 billion by 2019, and Microbot aims to leverage its strong IP portfolio and core capabilities to capture market share.
• Leadership Enhancements: The company has strengthened its Board with experienced medical device professionals to guide its strategic initiatives.

3. Forward Guidance and Outlook

• Upcoming Milestones: The company expects to complete studies for the Self-Cleaning Shunt and present initial data at the International Society for Hydrocephalus conference in September 2017.
• Future Plans: Microbot aims to explore partnerships and potential mergers to expand its market reach and product offerings. They are also focused on continuing to strengthen their leadership team.

4. Bad News, Challenges, or Points of Concern

• Burn Rate: The current burn rate is approximately $4 million annually, which may need to be reduced or offset by new revenue streams to ensure sustainability.
• Regulatory Risks: The FDA approval process remains unpredictable, and while the company is targeting a submission for the Self-Cleaning Shunt in late 2018, delays are possible.
• Competitive Landscape: While Microbot claims a first-mover advantage in the self-cleaning shunt market, they face competition from existing shunt technologies and potential future entrants.

5. Notable Q&A Insights

• Operational Expenses: CFO David Naim indicated that operational expenses are expected to stabilize, with a projected burn rate of about $1 million per year, split between R&D and G&A.
• Partnership Opportunities: CEO Harel Gadot acknowledged ongoing discussions with larger companies to leverage their financial resources and capabilities, although specific partnerships were not disclosed.
• Study Updates: The company clarified that they are conducting two studies (not three) related to the Self-Cleaning Shunt, with initial results expected to be presented at the upcoming conference.
• Grants and Funding: The company has received grants from the Israeli government for the Self-Cleaning Shunt and plans to pursue additional funding opportunities without diluting shareholder value.

This summary encapsulates the key points from Microbot Medical's Q2 2017 earnings call, highlighting financial metrics, strategic initiatives, future outlook, and challenges faced by the company.