Full Press Release Details
INDEPENDENT AUDITORS REPORT TO THE SHAREHOLDERS OF
MICROBOT MEDICAL LTD.
audited the accompanying financial statements of Microbot Medical Ltd. ( the Company ), which comprise the balance sheets as of December 31, 2015 and 2014 and the related statement of operations, statements of changes in
shareholders equity (deficit) and statements of cash flows for the two years then ended and the related notes to the financial statements.
Management s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles
generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing
standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures
selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
control relevant to the Company s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31,
2015 and 2014 and the results of operations, changes in shareholders equity and cash flows for the two years then ended in accordance with generally accepted accounting principles in the United States of America.
Without qualifying our opinion, we draw attention to Note 1D to the financial statements regarding risk factors and the Company s business condition. As
described in that note, the Company is dependent on outside financing and on the continuing support of its investors.
/s/ Brightman Almagor Zohar
Brightman Almagor Zohar & Co.
Certified Public Accountants
Member of Deloitte Touche
except for Note 16, as to which the date is January 4, 2017
MICROBOT MEDICAL LTD.
| As of December 31, | ||||||||||||
| Note | 2015 | 2014 | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 3 | $ | 436,717 | $ | 790,246 | |||||||
| Other receivables and current assets | 4 | 49,761 | 114,211 | |||||||||
| 486,478 | 904,457 | |||||||||||
| Long-term receivables | 3,584 | |||||||||||
| Fixed Assets, net | 5 | 37,680 | 53,401 | |||||||||
| $ | 527,742 | $ | 957,858 | |||||||||
| LIABILITIES AND SHAREHOLDERS DEFICIT | ||||||||||||
| Current liabilities | ||||||||||||
| Trade accounts payable | 6 | $ | 24,661 | $ | 19,815 | |||||||
| Other current liabilities | 7 | 148,236 | 81,457 | |||||||||
| 172,897 | 101,272 | |||||||||||
| Long-term liabilities | ||||||||||||
| Convertible loans from shareholders | 8 | 419,099 | ||||||||||
| Commitments | 9 | |||||||||||
| Shareholders deficit | ||||||||||||
| Share capital | 10 | 2,616 | 2,616 | |||||||||
| Additional paid-in capital | 3,305,342 | 3,305,342 | * | |||||||||
| Accumulated deficit | (3,372,212 | ) | (2,451,372 | )* | ||||||||
| (64,254 | ) | 856,586 | ||||||||||
| $ | 527,742 | $ | 957,858 |
accompanying notes are an integral part of the financial statements.
MICROBOT MEDICAL LTD.
STATEMENTS OF OPERATIONS
| Year ended December 31, | ||||||||||||
| Note | 2015 | 2014 | ||||||||||
| Research and development expenses, net | 11 | $ | 822,759 | $ | 836,698 | |||||||
| General and administrative expenses | 12 | 92,018 | 251,113 | * | ||||||||
| Operating loss | 914,777 | 1,087,811 | ||||||||||
| Financing expenses, net | 13 | 6,063 | 119,023 | |||||||||
| Loss for the year | $ | 920,840 | $ | 1,206,834 | ||||||||
| Basic and diluted loss per share (in USD) | (0.122 | ) | (0.160 | ) | ||||||||
| Weighted average number of shares outstanding used in computing basic and diluted loss per share - in thousands | 47,541 | 47,541 |
The accompanying notes are an integral part of the financial statements.
MICROBOT MEDICAL LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS DEFICIT
| Share Capital | Additional paid-in capital | Accumulated deficit | Total | |||||||||||||
| Balance - December 31, 2013 | $ | 1,741 | $ | 1,617,450 | $ | (1,244,538 | ) | $ | 374,653 | |||||||
| Issuance of shares | 875 | 1,501,892 | 1,502,767 | |||||||||||||
| Loss for the year | (1,206,834 | ) | (1,206,834 | ) | ||||||||||||
| Share based compensation | 186,000 | * | 186,000 | |||||||||||||
| Balance - December 31, 2014 | 2,616 | 3,305,342 | (2,451,372 | ) | 856,586 | |||||||||||
| Loss for the year | (920,840 | ) | (920,840 | ) | ||||||||||||
| Balance - December 31, 2015 | $ | 2,616 | $ | 3,305,342 | $ | (3,372,212 | ) | $ | (64,254 | ) |
The accompanying notes are an integral part of the financial statements.
MICROBOT MEDICAL LTD.
STATEMENTS OF CASH FLOWS
| Year ended December 31, | ||||||||
| 2015 | 2014 | |||||||
| CASH FLOWS - OPERATING ACTIVITIES: | ||||||||
| Loss for the year | $ | (920,840 | ) | $ | (1,206,834 | ) | ||
| Adjustments required to present cash flows from operating activities (Appendix A) | 156,342 | 143,615 | * | |||||
| Net cash used in operating activities | (764,498 | ) | (1,063,219 | ) | ||||
| CASH FLOWS - INVESTMENT ACTIVITIES | ||||||||
| Investment in fixed assets | (1,525 | ) | (11,428 | ) | ||||
| Deposit for operational leasing | 3,590 | |||||||
| Net cash used in investment activities | (1,525 | ) | (7,838 | ) | ||||
| CASH FLOWS - FINANCING ACTIVITIES: | ||||||||
| Issuance of shares | 1,502,767 | |||||||
| Receipt of loans from shareholders | 412,494 | |||||||
| Net cash provided by financing activities | 412,494 | 1,502,767 | ||||||
| Increase (decrease) in cash and cash equivalents | (353,529 | ) | 431,710 | |||||
| Cash and cash equivalents - beginning of year | 790,246 | 358,536 | ||||||
| Cash and cash equivalents - end of year | $ | 436,717 | $ | 790,246 |
The accompanying notes are an integral part of the financial statements.
MICROBOT MEDICAL LTD.
STATEMENTS OF CASH FLOWS
| Year ended December 31, | ||||||||
| 2015 | 2014 | |||||||
| AppendixA - Adjustments required to present cash flows from operating activities: | ||||||||
| Income and expense items not involving cash flows: | ||||||||
| Depreciation | $ | 17,246 | $ | 16,373 | ||||
| Accumulated interest on convertible loans | 6,605 | |||||||
| Share-based compensation | 186,000 | * | ||||||
| 23,851 | 202,373 | |||||||
| Changed in assets and liabilities: | ||||||||
| Decrease (increase) in other receivables | 60,865 | (31,064 | ) | |||||
| Increase (decrease) in trade payables | 4,847 | (19,778 | ) | |||||
| Increase (decrease) in other payables | 66,779 | (7,916 | ) | |||||
| 132,491 | (58,758 | ) | ||||||
| $ | 156,342 | $ | 143,615 |
The accompanying notes are an integral part of the financial statements.
MICROBOT MEDICAL LTD.
NOTES TO THE FINANCIAL STATEMENTS
The Company was incorporated and registered with the
Registrar of Companies on November 10, 2010 and commenced its business operations in January 2011. The Company is engaged in the research and development of medical equipment.
| The Company | - | Microbot Medical Ltd | ||
| Related parties | - | as defined in Accounting Standards Codification 850 (ASC 850) | ||
| USD or $ | - | the U.S. dollar. | ||
| TRDF | - | Technion Research and Development Foundation |
The preparation of financial statements in conformity with U.S
GAAP requires management to make estimates and assumptions pertaining to transactions and matters whose ultimate effect on the financial statements cannot precisely be determined at the time of financial statements preparation. Although these
estimates are based on management s best judgment, actual results may differ from these estimates.
The Company has a limited
operating history and faces a number of risks, including uncertainties regarding the development of its product. Additionally, the Company expects that it will continue to incur significant operating costs and losses in connection with the
development of its products and financing of its business development operations.
As of the date of the financial statements, the
continuation of the Company s activities and its obligations are dependent upon the receipt of financing from its shareholders or new investors
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied in the preparation of the financial statements are as follows:
The financial statements have been prepared in conformity
with accounting principles generally accepted in United Sates of America ( US GAAP ).
The functional currency of the Company is
the U.S dollar ( dollar ) since the dollar is the currency of the primary economic environment in which the Company has operated and expects to continue to operate in the foreseeable future.
Transactions and balances denominated in dollars are presented at their original amounts. Transactions and balances denominated in foreign
currencies have been re-measured to dollars in accordance with the provisions of ASC 830-10, Foreign Currency Translation .
MICROBOT MEDICAL LTD.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
All transaction gains and losses from re-measurement of monetary balance sheet items
denominated in non-dollar currencies are reflected in the statement of operations as financial income or expenses, as appropriate.
Cash and cash equivalents consist of cash and demand
deposits in banks, and other short-term liquid investments (primarily interest-bearing time deposits) with original maturities of less than three months.
The carrying values of cash and cash
equivalents, other receivable and prepaid expenses, marketable equity securities and other accounts payable approximate their fair value due to the short-term maturity of these instruments.
Property and equipment are presented at cost, net of investment
grants received and less accumulated depreciation. Depreciation is calculated based on the straight-line method over the estimated useful lives of the assets, as follows:
| % | ||
| Research equipment and software | 25-33% | |
| Leasehold improvements | 10 | |
| Furniture and office equipment | 7 |
Detailed disclosure has been provided regarding transactions
with related parties as defined in Accounting Standards Codification 850 (ASC 850). See Note 13 regarding these transactions.
A premium representing surplus receipts due to shares on their
nominal value (see Note 9).
the Company are included under Article 14 of the Severance Compensation Act, 1963 ( Article 14 ) for a portion of their salaries. According to Article 14, these employees are entitled to monthly deposits made by the Company on their behalf
with insurance companies.
Payments in accordance with Article 14 release the Company from any future severance payments (under the
Severance Compensation Act, 1963) with respect of those employees. The aforementioned deposits are not recorded as an asset in the Company s balance sheet, and there is no liability recorded as the Company does not have a future obligation to
make any additional payments.
MICROBOT MEDICAL LTD.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Basic loss per share is computed by
dividing the net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the year. Diluted loss per share is computed by dividing the net loss applicable to common stockholders by the
weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all potentially dilutive common shares had been issued, using the treasury stock method, in accordance with ASC
260-10 Earnings per Share . Potentially dilutive common shares were excluded from the diluted loss per share calculation because they were anti-dilutive.
Research and development expenses, are
charged to the statement of operations as incurred. Grants for funding of approved research and development projects are recognized at the time the Company is entitled to such grants, on the basis of the costs incurred and applied as a deduction
from the research and development expenses.
Proceeds from the sale of debt securities with a
conversion feature are allocated to equity based on the intrinsic value of such conversion feature in accordance with ASC 470-20 Debt with Conversion and Other Options , with a corresponding discount on the debt instrument recorded in