Executive Summary

Development-stage quarter; no revenue and a larger net loss driven by a one-time non-cash extinguishment of a convertible note. Cash increased to ~$13.1M after equity financing, extending runway into 2019 .
Management reaffirmed SCS FDA submission timing by “end of 2018” and expects initial SCS preclinical data presentation in late September at ISHCSF (Kobe, Japan), a near-term catalyst .
Balance sheet strengthened by June registered direct offering ($10.125M gross), and IP portfolio expanded with Canadian patent on SCS and U.S. patent on shunt stenosis prevention .
CFO guided burn rate at ~$1M/year and a 24–30 month runway; GAAP loss elevated by accounting items (non-cash) tied to warrant liability revaluation and note extinguishment, not operating deterioration .
Ongoing litigation (Sabby) noted post-offering; early-stage, outcome uncertain; monitor for headline risk .

What Went Well and What Went Wrong

What Went Well

Strengthened liquidity: Cash and equivalents rose to ~$13.1M by 6/30/2017, aided by $9.2M net proceeds in Q2 offering; management believes resources sufficient “through 2019” . “We strengthened our cash position… to accelerate our current opportunities” .
Clinical and academic momentum: Two SCS studies running (Washington University animal; Wayne State in vitro) with initial animal data slated for ISHCSF in September; strong KOL engagement .
IP portfolio expansion: Canadian patent covering SCS inlet head and U.S. patent for preventing shunt stenosis; adds protection across ViRob and TipCAT platforms .

What Went Wrong

GAAP optics: Q2 net loss swung to ~$3.5M, primarily due to a one-time ~$2.3M accounting expense from convertible note extinguishment, and derivative warrant fair-value changes; not operating cash burn, but weighs on EPS optics .
Elevated public-company G&A: G&A rose to ~$0.885M in Q2 versus ~$0.074M YoY, reflecting audit, legal, listing costs; R&D also scaled as studies progressed .
Litigation over Q2 financing: Sabby suit seeks rescission/damages related to the offering; early-stage and management believes claims are without merit, but it adds headline risk .

Financial Results

Metric	Q2 2016	Q1 2017	Q2 2017
Revenue ($USD Millions)	$0.0	$0.0	$0.0
Net Loss ($USD Millions)	$0.164	$1.307	$3.508
Basic/Diluted Loss per Share ($)	$(0.01)	$(0.04)	$(0.09)
R&D Expense ($USD Millions)	$0.044	$0.184	$0.377
G&A Expense ($USD Millions)	$0.074	$1.049	$0.885
Operating Loss ($USD Millions)	$0.118	$1.233	$1.262
Financial Expenses ($USD Millions)	$0.046	$0.074	$2.246
One-time Convertible Note Extinguishment ($USD Millions)	—	—	$2.364 (non-cash accounting loss)

Notes: The Q2 press release cited loss per share of $0.12, while the 10-Q shows $0.09; the difference reflects reporting dynamics and share count effects; we anchor EPS to 10-Q for accuracy .

KPIs

KPI	Q1 2017	Q2 2017
Cash & Equivalents ($USD Millions)	$5.0	$13.078
Derivative Warrant Liability ($USD Thousands)	$313 (12/31/2016)	$38 (6/30/2017)
Net Cash Used in Ops ($USD Millions, 6M)	$(0.346)	$(2.198)

Segment breakdown: Not applicable (no revenue) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Self-Cleaning Shunt (SCS) FDA submission	By end of 2018	Not explicitly dated in Q1; development ongoing	“Remains on track” for submission by end of 2018	Initiated/Confirmed timeline
Initial SCS data presentation	Sep 2017 ISHCSF (Kobe)	Anticipated initial in vitro results near term	Initial animal data to be presented late Sept	Clarified timing/event
Cash runway	24–30 months	“Resources to execute development and FDA submission plans” (cash $5.0M)	Runway 24–30 months; cash ~$13.1M; resources through 2019	Raised runway
Burn rate (OpEx)	2017–2019	Not provided	Approx. $1M/year; G&A to decline from first half public-company ramp	New quantitative guide

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1)	Current Period (Q2)	Trend
Medical robotics positioning	Advancing TipCAT & ViRob; partnering with institutions	“Core capabilities” established; majors pursuing robotics; MBOT aiming leadership	Strengthening strategic posture
SCS preclinical studies	Initiated in-vitro feasibility; Washington U collaboration	Animal model at Washington U; in-vitro at Wayne State; initial animal data at ISHCSF	Execution progressing; near-term data
Regulatory timeline	Development plans; resources for submission	FDA submission targeted late 2018; 510(k)/novel 510(k) pathway explanation	Timeline reaffirmed
Financing & runway	$3.5M Q1 raise; $5.0M cash	$10.125M June offering; ~$13.1M cash; 24–30 month runway	Runway extended
Partnerships/M&A	Expanding BD; added BD leadership	Exploring collaborations/partnerships/M&A; larger players engaging MBOT	Active dialogues
IP portfolio	Allowance for shunt stenosis patent	Canadian SCS patent; U.S. shunt stenosis patent granted	Portfolio broadened
Legal/regulatory risk	—	Sabby litigation over offering terms (early-stage)	New risk surfaced

Management Commentary

“Our lead product, the Self-Cleaning Shunt (SCS)… remains on track for its submission to the FDA by the end of 2018.”
“Two unique studies are currently running in parallel… animal study in Washington University… in vitro study in Wayne State University.” Initial SCS animal data to be presented at ISHCSF in September .
“We strengthened our cash position… position the Company to accelerate its current opportunities as well as preparing for significant growth during the next two to three-year period.”
“We have $13 million in our bank account… [Q2 six-month] R&D ~$561K; G&A ~$1.9M… financial expenses ~$2.3M… accounting transaction… not cash.”
“We are still on target for the later part of 2018 for FDA submission.”

Q&A Highlights

Burn rate and OpEx mix: CFO guided ~$1M/year burn with expectation G&A to moderate from initial public-company ramp; R&D spending tied to project progress .
Study details and timing: Initial animal data at ISHCSF; in vitro calibration ongoing; design work continues until post-results .
FDA pathway/timing: Aimed at 510(k)/novel 510(k); potential ~30–90 days review for standard 510(k) (longer if novel) after submission; reaffirmed late-2018 submission target .
Partnerships: Management exploring collaborations; argues “money doesn’t buy capabilities,” positioning MBOT’s core tech as attractive to larger players .
Financing posture: June raise intended to cover 24–30 months and potentially fund at least one collaboration or M&A; also pursuing nondilutive Israeli government grants .

Estimates Context

Wall Street consensus (S&P Global) for Q2 2017 EPS and revenue was unavailable for MBOT; as a development-stage micro-cap with no revenue, formal quarterly coverage is limited. No beat/miss assessment can be made relative to consensus.
Results optics were impacted by non-cash financial items (convertible note extinguishment, warrant liability revaluation), while operating loss remained modest relative to financing expenses .

Key Takeaways for Investors

Near-term catalyst: Initial SCS animal data presentation at ISHCSF (late September) and continued preclinical progress could validate the self-cleaning shunt concept and drive interest .
Timeline reaffirmed: Late-2018 FDA submission target maintained; pathway discussions suggest a 510(k)/novel 510(k) approach, potentially shortening time to clearance post-submission .
Liquidity improved: Post-June offering, cash of ~$13.1M and 24–30 month runway support execution of preclinical programs and potential BD/M&A; stock sensitivity to future capital plans reduced near term .
Accounting-driven loss: Q2 GAAP loss was largely non-cash, tied to financing structure; monitor operating loss trajectory (R&D and G&A trends) rather than headline net loss .
IP moat broadening: New patents in Canada (SCS) and U.S. (shunt stenosis) extend protection across platforms, potentially enhancing partnering leverage .
Watch risks: Sabby litigation introduces uncertainty; ongoing warrant structures and anti-dilution features require monitoring; public-company costs likely elevated but should normalize .
Strategic optionality: Active dialogues with larger device companies and nondilutive grants could supplement funding; any collaboration/M&A announcement would be a material driver .

Additional Relevant Disclosures and Prior Quarter Materials

Q1 2017 press release: Net loss $1.3M; R&D $0.184M; G&A $1.049M; cash $5.0M; milestones included initiating SCS studies and BD/board enhancements .
Offering announcements: $10.125M registered direct offering announced June 5 and closed June 9 .
IP press releases: Canadian SCS patent (May 31) and U.S. patent for shunt stenosis prevention (June 14) .

Citations: All data and quotes are sourced from company filings and transcripts as cited above.

Microbot Medical Inc. (MBOT)·Q2 2017 Earnings Summary