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in its charter)</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_90F_edei--EntityIncorporationStateCountryCode_c20210101__20211231_zi5geurwPLle"><br /> Delaware</span></b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_90E_edei--EntityTaxIdentificationNumber_c20210101__20211231_z5LAWp6vIgLh"><br /> 94-3078125</span></b></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(State<br /> or Other Jurisdiction</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>of<br /> Incorporation or Organization)</i></span></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(I.R.S.<br /> Employer</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Identification<br /> No.)</i></span></p> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_903_edei--EntityAddressAddressLine1_c20210101__20211231_z5PaP4gMtTC"><br /> 25 Recreation Park Drive</span>, <span id="FORM10-K_HTM_xdx_902_edei--EntityAddressAddressLine2_c20210101__20211231_zcl13nyAToU3"><br /> Unit 108</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_905_edei--EntityAddressCityOrTown_c20210101__20211231_z32NRCuTGki6"><br /> Hingham</span>, <span id="FORM10-K_HTM_xdx_901_edei--EntityAddressStateOrProvince_c20210101__20211231_z34Va5Q2OVd"><br /> MA</span> <span id="FORM10-K_HTM_xdx_903_edei--EntityAddressPostalZipCode_c20210101__20211231_z9sUpW67m9n6"><br /> 02043</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(Address<br /> including zip code of registrant’s Principal Executive<br /> Offices)</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_90B_edei--CityAreaCode_c20210101__20211231_zFeGhZQl449h"><br /> (781)</span> <span id="FORM10-K_HTM_xdx_904_edei--LocalPhoneNumber_c20210101__20211231_zq03lDw7hDkg"><br /> 875-3605</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Registrant’s<br /> Telephone Number, Including Area Code)</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Securities<br /> registered under Section 12(b) of the Act:</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 38%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Title<br /> of each class</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 20%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> Trading<br /> Symbol(s)</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 38%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Name<br /> of each exchange on which registered</b></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="FORM10-K_HTM_xdx_90D_edei--Security12bTitle_c20210101__20211231_zRkEYpLGHU1g"><br /> Common Stock, Par value $0.01</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="FORM10-K_HTM_xdx_908_edei--TradingSymbol_c20210101__20211231_zcYJXNebAkJa">MBOT</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span><br /> <span id="FORM10-K_HTM_xdx_902_edei--SecurityExchangeName_c20210101__20211231_z6e6iHrtaWej"><br /> NASDAQ</span> Capital Market</span></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Securities<br /> registered under Section 12(g) of the Act: None</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate<br /> by check mark if the registrant is a well-known seasoned issuer, as<br /> defined in Rule 405 of the Securities Act. Yes ☐ <span id="FORM10-K_HTM_xdx_908_edei--EntityWellKnownSeasonedIssuer_c20210101__20211231_zLuIj7XdVjS1"><br /> No</span> ☒</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate<br /> by check mark if the registrant is not required to file reports<br /> pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ <span id="FORM10-K_HTM_xdx_903_edei--EntityVoluntaryFilers_c20210101__20211231_zjBivlnAAnl8"><br /> No</span> ☒</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate<br /> by check mark whether the registrant (1) has filed all reports<br /> required to be filed by Section 13 or 15(d) of the Securities<br /> Exchange Act of 1934 during the preceding 12 months (or for such<br /> shorter period that the registrant was required to file such<br /> reports), and (2) has been subject to such filing requirements for<br /> the past 90 days. <span id="FORM10-K_HTM_xdx_90F_edei--EntityCurrentReportingStatus_c20210101__20211231_zCUmeGB7I9Me"><br /> Yes</span> ☒ No ☐</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate<br /> by check mark whether the registrant has submitted electronically<br /> every Interactive Data file required to be submitted pursuant to<br /> Rule 405 of Regulation S-T (§232.405 of this chapter) during the<br /> preceding 12 months (or for such shorter period that the registrant<br /> was required to submit such files). <span id="FORM10-K_HTM_xdx_900_edei--EntityInteractiveDataCurrent_c20210101__20211231_zj4G0MAUupLd"><br /> Yes</span> ☒ No ☐</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate<br /> by check mark whether the registrant is a large accelerated filer,<br /> an accelerated filer, a non-accelerated filer, a smaller reporting<br /> company, or an emerging growth company. See the definitions of<br /> “large accelerated filer,” “accelerated filer,” “smaller reporting<br /> company”, and “emerging growth company” in Rule 12b-2 of the<br /> Exchange Act.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 50%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large<br /> accelerated filer ☐</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 50%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated<br /> filer ☐</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="FORM10-K_HTM_xdx_90F_edei--EntityFilerCategory_c20210101__20211231_z8sLePpLnPP7"><br /> Non-accelerated filer</span> ☒</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller<br /> reporting company <span id="FORM10-K_HTM_xdx_903_edei--EntitySmallBusiness_c20210101__20211231_zaJ9HUEcGPRe"><br /> ☒</span></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging<br /> Growth Company <span id="FORM10-K_HTM_xdx_903_edei--EntityEmergingGrowthCompany_c20210101__20211231_zf6eQlQ33mw8"><br /> ☐</span></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If an<br /> emerging growth company, indicate by check mark if the registrant<br /> has elected not to use the extended transition period for complying<br /> with any new or revised financial accounting standards provided<br /> pursuant to Section 13(a) of the Exchange Act. ☐</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate<br /> by check mark whether the registrant has filed a report on and<br /> attestation to its management’s assessment of the effectiveness of<br /> its internal control over financial reporting under Section 404(b)<br /> of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered<br /> public accounting firm that prepared or issued its audit report.<br /> <span id="FORM10-K_HTM_xdx_90D_edei--IcfrAuditorAttestationFlag_c20210101__20211231_zVpWoNu84rtb" title="ICFR Auditor Attestation Flag">☐</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate<br /> by check mark whether the registrant is a shell company (as defined<br /> in Rule 12b-2 of the Exchange Act). Yes ☐ <span id="FORM10-K_HTM_xdx_909_edei--EntityShellCompany_c20210101__20211231_zJnZ51gO3h24"><br /> No</span> ☒</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">State<br /> the aggregate market value of the voting and non-voting common<br /> equity held by non-affiliates computed by reference to the price at<br /> which the common equity was last sold, or the average bid and asked<br /> price of such common equity, as of the last business day of the<br /> registrant’s most recently completed second fiscal quarter:<br /> approximately $<span id="FORM10-K_HTM_xdx_906_edei--EntityPublicFloat_iI_pp0p0_c20210630_zmGKTXIFQny1" title="Entity Public Float">56,438,576</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common<br /> stock outstanding as of March 29, 2022: <span id="FORM10-K_HTM_xdx_903_edei--EntityCommonStockSharesOutstanding_iI_pid_c20220329_zOdROgvz0SX"><br /> 7,108,133</span></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Rule-Page --></p> <p><!-- Field: /Rule-Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>INFORMATION<br /> CONCERNING FORWARD-LOOKING STATEMENTS</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>This<br /> report contains forward-looking statements. Forward-looking<br /> statements are projections in respect of future events or our<br /> future financial performance. In some cases, you can identify<br /> forward-looking statements by terminology such as “may”, “should”,<br /> “intends”, “expects”, “will”, “plans”, “anticipates”, “believes”,<br /> “estimates”, “predicts”, “potential”, or “continue” or the negative<br /> of these terms or other comparable terminology. These statements<br /> are only predictions and involve known and unknown risks,<br /> uncertainties and other factors, including the risks listed under<br /> the section entitled “Risk Factors” commencing on page 20 of this<br /> report, which may cause our or our industry’s actual results,<br /> levels of activity or performance to be materially different from<br /> any future results, levels of activity or performance expressed or<br /> implied by these forward-looking statements.</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Table<br /> of Contents</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE<br /> REGARDING REFERENCES TO OUR COMPANY</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Throughout<br /> this Form 10-K, the words “we,” “us,” “our,” the “Company” and<br /> “Microbot” refer to Microbot Medical Inc., including our directly<br /> and indirectly wholly-owned subsidiaries and, unless the context<br /> otherwise requires, the historical business, financial statements<br /> and operations of Microbot are of Microbot Medical Ltd., an Israeli<br /> corporation (“Microbot Israel”) which became a wholly-owned<br /> subsidiary of the Company on November 28, 2016.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 2; Options: NewSection; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risk<br /> Factors Summary</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> following is a summary of the principal risks that could adversely<br /> affect our business, operations, and financial results. A more<br /> thorough discussion of these and other risks are listed under the<br /> section entitled “Risk Factors” commencing on page 20.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to Microbot’s Financial Position and Need for Additional<br /> Capital</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has had no revenue and has incurred significant operating losses<br /> since inception and is expected to continue to incur significant<br /> operating losses for the foreseeable future. The Company may never<br /> become profitable or, if achieved, be able to sustain<br /> profitability.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has a limited operating history, which may make it difficult to<br /> evaluate the prospects for the Company’s future<br /> viability.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> may need additional funding. If Microbot is unable to raise capital<br /> when needed, it could be forced to delay, reduce or eliminate its<br /> product development programs or commercialization<br /> efforts.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An<br /> epidemic of the coronavirus disease is ongoing and may result in<br /> significant disruptions to our clinical trials or other business<br /> operations, which could have a material adverse effect on our<br /> business.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to the Development and Commercialization of Microbot’s<br /> Product Candidates</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unsuccessful<br /> animal studies, clinical trials or procedures relating to product<br /> candidates under development could have a material adverse effect<br /> on Microbot’s prospects.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> business depends heavily on the success of its lead product<br /> candidates, the LIBERTY<sup>®</sup> and SCS. If Microbot is unable<br /> to commercialize the LIBERTY or SCS, or experiences significant<br /> delays in doing so, Microbot’s business will be materially<br /> harmed.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> ability to expand its technology platforms for other uses,<br /> including endovascular neurosurgery other than for the treatment of<br /> hydrocephalus, may be limited.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At<br /> this time, Microbot does not know whether the FDA will require it<br /> to submit clinical data in support of its future marketing<br /> applications for its SCS product candidate, particularly in light<br /> of recent initiatives by the FDA to enhance and modernize its<br /> approach to medical device safety and innovation, which creates<br /> uncertainty for Microbot as well as the possibility of increased<br /> product development costs and time to market.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> FDA may disagree with Microbot’s determination that the SCS is a<br /> Class II device or that the chosen predicate device (or any<br /> predicate device) is appropriate for a substantial equivalence<br /> comparison to the SCS.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> CardioSert technology is subject to a buy-back clause which, if<br /> triggered, could cause us to lose rights to the technology and<br /> delay or curtail the development of our products.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> the commercial opportunity for SCS, LIBERTY and any other<br /> commercial products that may be developed by Microbot is smaller<br /> than Microbot anticipates, Microbot’s future revenue from SCS,<br /> LIBERTY and such other products will be adversely affected and<br /> Microbot’s business will suffer.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Customers<br /> will be unlikely to buy the SCS, LIBERTY or any other product<br /> candidates unless Microbot can demonstrate that they can be<br /> produced for sale to consumers at attractive prices.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> will rely on third party design houses for the redesign of the<br /> CardioSert guidewire to other specific indications.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has relied on, and intends to continue to rely on, third-party<br /> manufacturers to produce its product candidates.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> Microbot’s product candidates are not considered to be a safe and<br /> effective alternative to existing technologies, Microbot will not<br /> be commercially successful.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> may be subject to penalties and may be precluded from marketing its<br /> product candidates if Microbot fails to comply with extensive<br /> governmental regulations.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> Microbot is not able to both obtain and maintain adequate levels of<br /> third-party reimbursement for procedures involving its product<br /> candidates after they are approved for marketing and launched<br /> commercially, it would have a material adverse effect on Microbot’s<br /> business.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clinical<br /> outcome studies for the SCS may not provide sufficient data to make<br /> Microbot’s product candidates the standard of care.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> products may in the future be subject to mandatory product recalls<br /> that could harm its reputation, business and financial<br /> results.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> Microbot’s future commercialized products cause or contribute to a<br /> death or a serious injury, Microbot will be subject to Medical<br /> Device Reporting regulations, which can result in voluntary<br /> corrective actions or agency enforcement actions.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> could be exposed to significant liability claims if Microbot is<br /> unable to obtain insurance at acceptable costs and adequate levels<br /> or otherwise protect itself against potential product liability<br /> claims.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> results of Microbot’s research and development efforts are<br /> uncertain and there can be no assurance of the commercial success<br /> of Microbot’s product candidates.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> Microbot fails to retain certain of its key personnel and attract<br /> and retain additional qualified personnel, Microbot might not be<br /> able to pursue its growth strategy effectively.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 3; Options: NewSection; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to Microbot’s Intellectual Property</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> right to develop and commercialize the SCS and TipCAT product<br /> candidates are subject to the terms and condition of a license<br /> granted to Microbot by Technion Research and Development Foundation<br /> Ltd. and termination of the license with respect to one or both of<br /> the technology platforms underlying the product candidates would<br /> result in Microbot ceasing its development efforts for the<br /> applicable product candidate(s).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> may not meet its product candidates’ development and<br /> commercialization objectives in a timely manner or at<br /> all.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intellectual<br /> property litigation and infringement claims could cause Microbot to<br /> incur significant expenses or prevent Microbot from selling certain<br /> of its product candidates.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> Microbot or TRDF are unable to protect the patents or other<br /> proprietary rights relating to Microbot’s product candidates, or if<br /> Microbot infringes on the patents or other proprietary rights of<br /> others, Microbot’s competitiveness and business prospects may be<br /> materially damaged.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dependence<br /> on patent and other proprietary rights and failing to protect such<br /> rights or to be successful in litigation related to such rights may<br /> result in Microbot’s payment of significant monetary damages or<br /> impact offerings in its product portfolios.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to Operations in Israel</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has facilities located in Israel, and therefore, political<br /> conditions in Israel may affect Microbot’s operations and<br /> results.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Political<br /> relations could limit Microbot’s ability to sell or buy<br /> internationally.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israel’s<br /> economy may become unstable.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exchange<br /> rate fluctuations between the U.S. dollar and the NIS currencies<br /> may negatively affect Microbot’s operating costs.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Funding<br /> and other benefits provided by Israeli government programs may be<br /> terminated or reduced in the future and the terms of such funding<br /> may have a significant impact on future corporate<br /> decisions.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Some<br /> of Microbot’s employees and officers are obligated to perform<br /> military reserve duty in Israel.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">It<br /> may be difficult to enforce a non-Israeli judgment against Microbot<br /> or its officers and directors.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to Microbot’s Securities, Governance and Other<br /> Matters</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we<br /> fail to comply with the continued listing requirements of The<br /> Nasdaq Capital Market, our common stock may be delisted and the<br /> price of our common stock and our ability to access the capital<br /> markets could be negatively impacted.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We do<br /> not expect to pay cash dividends on our common stock.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Anti-takeover<br /> provisions in the Company’s charter and bylaws under Delaware law<br /> may prevent or frustrate attempts by stockholders to change the<br /> board of directors or current management and could make a<br /> third-party acquisition of the Company difficult.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> are subject to litigation, which may divert management’s attention<br /> and have a material adverse effect on our business, financial<br /> condition and results of operations.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"> <b>General Risks</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">  </p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-size: 10pt">Raising additional capital may cause<br /> dilution to the Company’s investors, restrict its operations or<br /> require it to relinquish rights to its technologies or product<br /> candidates.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-size: 10pt">Microbot operates in a competitive<br /> industry and if its competitors have products that are marketed<br /> more effectively or develop products, treatments or procedures that<br /> are similar, more advanced, safer or more effective, its commercial<br /> opportunities will be reduced or eliminated, which would materially<br /> harm its business.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-size: 10pt">Our business strategy in part relies<br /> on identifying, acquiring and developing complementary technologies<br /> and products, which entails risks which could negatively affect our<br /> business, operations and financial condition.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-size: 10pt">Microbot operations in international<br /> markets involve inherent risks that Microbot may not be able to<br /> control.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-size: 10pt">Microbot’s financial results may be<br /> affected by fluctuations in exchange rates and Microbot’s current<br /> currency hedging strategy may not be sufficient to counter such<br /> fluctuations.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-size: 10pt">The market price for our Common Stock<br /> may be volatile.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-size: 10pt">The issuance of shares upon exercise<br /> of outstanding warrants and options could cause immediate and<br /> substantial dilution to existing stockholders.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt">  </p> <p><!-- Field: Page; Sequence: 4; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_a_001"><br /> </span>PART I</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 1. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_002"/>Description of<br /> Business.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The<br /> Company</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> is a pre-clinical medical device company specializing in the<br /> research, design and development of next generation robotic<br /> endoluminal surgery devices targeting the minimally invasive<br /> surgery space. Microbot is primarily focused on leveraging its<br /> micro-robotic technologies with the goal of redefining surgical<br /> robotics while improving surgical outcomes for patients.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> current technological platforms, ViRob<sup>TM</sup>,<br /> TipCAT<sup>TM</sup>, LIBERTY<sup>®</sup> and certain CardioSert<br /> assets, are comprised of proprietary innovative technologies. Using<br /> the ViRob platform, Microbot is currently developing the<br /> Self-Cleaning Shunt, or SCS<sup>TM</sup>, for the treatment of<br /> hydrocephalus and Normal Pressure Hydrocephalus, or NPH. Utilizing<br /> the LIBERTY and CardioSert platforms, Microbot is developing the<br /> first ever fully disposable robot for various endovascular<br /> interventional procedures. In addition, the Company is focused on<br /> the development of a Multi Generation Pipeline Portfolio utilizing<br /> all of its proprietary technologies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has a patent portfolio of 47 issued/allowed patents and 29 patent<br /> applications pending worldwide.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> were incorporated on August 2, 1988 in the State of Delaware under<br /> the name Cellular Transplants, Inc. The original Certificate of<br /> Incorporation was restated on February 14, 1992 to change our name<br /> to CytoTherapeutics, Inc. On May 24, 2000, the Certificate of<br /> Incorporation as restated was further amended to change our name to<br /> StemCells, Inc. On November 28, 2016, C&RD Israel Ltd., a<br /> wholly-owned subsidiary of ours, completed its merger with and into<br /> Microbot Medical Ltd., or Microbot Israel, an Israeli corporation<br /> that then owned our assets and operated our current business, with<br /> Microbot Israel surviving as a wholly-owned subsidiary of ours. We<br /> refer to this transaction as the Merger. On November 28, 2016, in<br /> connection with the Merger, we changed our name from “StemCells,<br /> Inc.” to Microbot Medical Inc., and each outstanding share of<br /> Microbot Israel capital stock was converted into the right to<br /> receive shares of our common stock. In addition, all outstanding<br /> options to purchase the ordinary shares of Microbot Israel were<br /> assumed by us and converted into options to purchase shares of the<br /> common stock of Microbot Medical Inc. On November 29, 2016, our<br /> common stock began trading on the Nasdaq Capital Market under the<br /> symbol “MBOT”. Prior to the Merger, we were a biopharmaceutical<br /> company that operated in one segment, the research, development,<br /> and commercialization of stem cell therapeutics and related<br /> technologies. Substantially all of the material assets relating to<br /> the stem cell business were sold on November 29, 2016.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Technological<br /> Platforms</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>ViRob</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> ViRob is an autonomous crawling micro-robot which can be controlled<br /> remotely or within the body. Its miniature dimensions are expected<br /> to allow it to navigate and crawl in different natural spaces<br /> within the human body, including blood vessels, the digestive tract<br /> and the respiratory system as well as artificial spaces such as<br /> shunts, catheters, ports, etc. Its unique structure is expected to<br /> give it the ability to move in tight spaces and curved passages as<br /> well as the ability to remain within the human body for prolonged<br /> time. The SCS product was developed using the ViRob<br /> technology.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>TipCAT</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> TipCAT is a disposable self-propelled locomotive device that is<br /> specially designed to advance in tubular anatomies. The TipCAT is a<br /> mechanism comprising a series of interconnected balloons at the<br /> device’s tip that provides the TipCAT with its forward locomotion<br /> capability. The device can self-propel within natural tubular<br /> lumens such as the blood vessels, respiratory and the urinary and<br /> GI tracts. A single channel of air/fluid supply sequentially<br /> inflates and deflates a series of balloons creating an inchworm<br /> like forward motion. The TipCAT maintains a standard working<br /> channel for treatments. Unlike standard access devices such as<br /> guidewires, catheters for vascular access and endoscopes, the<br /> TipCAT does not need to be pushed into the patient’s lumen using<br /> external pressure; rather, it will gently advance itself through<br /> the organ’s anatomy. As a result, the TipCAT is designed to be able<br /> to reach every part of the lumen under examination regardless of<br /> the topography, be less operator dependent, and greatly reduce the<br /> likelihood of damage to lumen structure. The TipCAT thus offers<br /> functionality features equivalent to modern tubular access devices,<br /> along with advantages associated with its physiologically adapted<br /> self-propelling mechanism, flexibility, and design.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 5; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>One<br /> & Done<sup>TM</sup> (CardioSert) Technology</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> April 8, 2018, Microbot acquired a patent-protected technology from<br /> CardioSert Ltd., a privately-held medical device company based in<br /> Israel that was part of a technological incubator supported by the<br /> Israel Innovation Authorities. The CardioSert technology<br /> contemplates a combination of a guidewire and microcatheter,<br /> technologies that are broadly used for surgery within a tubular<br /> organ or structure such as a blood vessel or duct. The CardioSert<br /> technology features a unique guidewire delivery system with<br /> steering and stiffness control capabilities which when developed is<br /> expected to give the physician the ability to control the tip<br /> curvature, to adjust tip load to varying degrees of stiffness in a<br /> gradually continuous manner. The CardioSert technology was<br /> originally developed to support interventional cardiologists in<br /> crossing chronic total occlusions (CTO) during percutaneous<br /> coronary intervention (PCI) procedures and has the potential to be<br /> used in other spaces and applications, such as peripheral<br /> intervention, and neurosurgery. Our CardioSert tool is now<br /> trademarked as “One & Done<sup>TM</sup>”.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>LIBERTY<sup>®</sup></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> January 13, 2020, Microbot unveiled what it believes is the world’s<br /> first fully disposable robotic system for use in endovascular<br /> interventional procedures, such as cardiovascular, peripheral and<br /> neurovascular. The LIBERTY robotic system features a unique compact<br /> design with the capability to be operated remotely, reduce<br /> radiation exposure and physical strain to the physician, reduce the<br /> risk of cross contamination, as well as the potential to eliminate<br /> the use of multiple consumables when used with its “One & Done”<br /> capabilities, which would be based in part on the CardioSert<br /> platform or possibly other guidewire/microcatheter<br /> technologies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">LIBERTY<br /> is designed to maneuver guidewires and over-the-wire devices (such<br /> as microcatheters) within the body’s vasculature. It eliminates the<br /> need for extensive capital equipment requiring dedicated Cath-lab<br /> rooms as well as dedicated staff. In addition, when combined with<br /> CardioSert technology or possibly other guidewire/microcatheter<br /> technologies, it is being designed to streamline Cath-lab<br /> procedures with tools that combines guidewire and microcatheter<br /> into a single device. With control over tip curvature and stiffness<br /> for maneuverability and access – and without the need for constant<br /> tool exchanges – when integrated into the LIBERTY device, the<br /> device may drastically reduce procedure time and costs while<br /> enhancing the operator experience.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> August 17, 2020, Microbot announced the successful conclusion of<br /> its feasibility animal study using the LIBERTY robotic system. The<br /> study met all of its end points with no intraoperative adverse<br /> events, which supports Microbot’s objectives to allow physicians to<br /> conduct a catheter-based procedure from outside the catheterization<br /> laboratory (cath-lab), avoiding radiation exposure, physical strain<br /> and the risk of cross contamination. The study was performed by two<br /> leading physicians in the neuro vascular and peripheral vascular<br /> intervention spaces, and the results demonstrated robust navigation<br /> capabilities, intuitive usability and accurate deployment of<br /> embolic agents, most of which was conducted remotely from the<br /> cath-lab’s control room.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> December 22, 2021, we entered into a strategic collaboration<br /> agreement for technology co-development with Stryker Corporation,<br /> acting through its Neurovascular Division. Pursuant to the<br /> agreement, the collaborative development program between Stryker<br /> and us aims to integrate certain of Stryker’s instruments with our<br /> LIBERTY Robotic System to address certain neurovascular procedures.<br /> The activities contemplated by the Agreement shall be specified in<br /> one or more development plans derived from the terms and conditions<br /> set forth in the Agreement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> are continuously exploring and evaluating additional innovative<br /> guidewire/microcatheter technologies to be integrated and combined<br /> with the LIBERTY robotic platform.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Industry<br /> Overview</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>CSF<br /> Management</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hydrocephalus<br /> is a medical condition in which there is an abnormal accumulation<br /> of cerebrospinal fluid, or CSF, in the brain that can cause<br /> increased intracranial pressure. It is estimated that one in every<br /> 500 babies are born with hydrocephalus, and over 1,000,000 people<br /> in the United States currently live with hydrocephalus.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Symptoms<br /> of hydrocephalus vary with age, disease progression and individual<br /> tolerance to the condition, but they can include convulsion, tunnel<br /> vision, mental disability or dementia-like symptoms and even death.<br /> NPH is a type of hydrocephalus that usually occurs in older adults.<br /> NPH is generally treated as distinct from other types of<br /> hydrocephalus because it develops slowly over time. In NPH, the<br /> drainage of CSF is blocked gradually and the excess fluid builds up<br /> slowly. This slow accumulation means that the fluid pressure may<br /> not be as high as in other types of hydrocephalus. It is estimated<br /> that more than 700,000 Americans have NPH, but less than 20%<br /> receive an appropriate diagnosis.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hydrocephalus<br /> is most often treated by the surgical insertion of a shunt system.<br /> The shunt system diverts the flow of CSF from the brain’s<br /> ventricles (or the lumbar subarachnoid space) to another part of<br /> the body where the fluid can be more readily absorbed.<br /> Hydrocephalus shunt designs have changed little since their<br /> introduction in the 1950s. A shunt system typically consists of<br /> three parts: the distal tubing or shunt (a flexible and sturdy<br /> plastic tube), the ventricular catheter (the proximal catheter),<br /> and a valve. The end of the shunt system with the proximal catheter<br /> is placed in the ventricles (within the CSF) and the distal<br /> catheter is placed in the site of the body where the CSF can be<br /> drained. A valve is located along the shunt to maintain and<br /> regulate the rate of CSF flow. Current systems can be created from<br /> separate components or bought as complete units.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 6; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> treatment of hydrocephalus with existing shunt systems often<br /> includes complications. For example, approximately 50% of shunts<br /> used in the pediatric population fail within two years of placement<br /> and repeated neurosurgical operations are often required.<br /> Ventricular catheter blockage, or occlusion, is by far the most<br /> frequent event that results in shunt failure. Shunt occlusion<br /> occurs when there is a partial or complete blockage of the shunt<br /> that causes it to function intermittently or not at all. Such a<br /> shunt blockage can be caused by the accumulation of blood cells,<br /> tissue, or bacteria in any part of the shunt system. In the event<br /> of shunt occlusion, CSF begins to accumulate in the brain or lumbar<br /> region again and the symptoms of untreated hydrocephalus can<br /> reappear until a shunt replacement surgery is performed.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although<br /> several companies are active in the field of hydrocephalus<br /> treatment and the manufacturing of shunt systems and shunt<br /> components, Microbot believes that the majority of those companies<br /> are focusing on the development of valves. The development of a<br /> “smart shunt” – a shunt that could provide data to the physician on<br /> patient conditions and shunt function with sensor-based controls,<br /> or correct the high failure rate of existing shunt systems – is for<br /> the most part at an academic and conceptual level only. Reports of<br /> smart shunt technologies are typically focused on a subset of<br /> components with remaining factors left unspecified, such as<br /> hardware, control algorithms or power management. Microbot does not<br /> believe that a smart shunt that can prevent functional failures has<br /> been developed to date. Because of the limited innovation in this<br /> area, Microbot believes an opportunity exists to provide patients<br /> suffering from hydrocephalus or NPH with a more effective<br /> instrument for treating their condition.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An<br /> alternative, short-term solution to hydrocephalus is the<br /> implantation of an External Ventricular Drainage, or EVD, an<br /> implanted device used in neurosurgery for the short-term treatment<br /> and monitoring of elevated intracranial pressure when the normal<br /> flow of CSF inside the brain is obstructed. If after using an EVD,<br /> the underlying hydrocephalus does not eventually resolve, the EVD<br /> may then be replaced with a cerebral shunt, a fully internalized,<br /> long-term treatment for hydrocephalus.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">EVDs<br /> are also used in other instances when the normal flow of CSF inside<br /> the brain is obstructed, such as a result of head trauma,<br /> intracerebral hemorrhage, brain tumors and infection. The EVD<br /> serves to divert excess fluids from the brain and allows for the<br /> monitoring of intracranial pressure. An EVD must be placed in a<br /> center with full neurosurgical capabilities because immediate<br /> neurosurgical intervention may be needed if a complication of EVD<br /> placement, such as bleeding, is encountered. EVD is one of the most<br /> commonly used and most important life-saving procedures in the<br /> neurologic ICU, with more than 200,000 neuro-intensive patients<br /> requiring EVD insertions annually.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Similar<br /> to shunts, EVDs are also prone to occlusion, mostly due to cellular<br /> debris, such as blood clots and/or tissue fragments. Studies have<br /> shown that approximately 1-7% of EVDs require replacement secondary<br /> to occlusion. Current solutions for EVD occlusion include<br /> irrigation and replacement, which we believe may be ineffective (in<br /> the case of irrigation) or costly (in the case of replacement) and<br /> in either case, put the patient at risk of unintended side effects.<br /> Microbot believes that with its portfolio of technologies, and its<br /> initial pre-clinical results, it is well-positioned to explore and<br /> expand its offerings as an alternative solution for EVD<br /> occlusion.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Minimally<br /> Invasive Robot-Assisted Endovascular Interventions</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Minimally<br /> Invasive Surgery, or MIS, refers to surgical procedures performed<br /> through tiny incisions instead of a single large opening. Because<br /> the incisions are small, patients tend to have quicker recovery<br /> times and experience less trauma than with conventional surgery.<br /> The global MIS surgery is expected to grow from $24 billion in 2020<br /> to $42 billion in 2026, representing a CAGR of 9.85%. MIS involves<br /> three major categories of devices: surgical, monitoring and<br /> visualization, and endoscopy. The market for surgical devices,<br /> including ablation, electrosurgery and medical robotic systems,<br /> accounts for the largest share of revenue and is also expected to<br /> show the highest rate of growth. According to the Society of<br /> Robotic Surgery, the US market growth in endoluminal robotic<br /> surgery is projected to be 15-25% by 2025.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vascular<br /> disease is the most common precursor to ischemic heart disease and<br /> stroke, which are two of the leading causes of death worldwide.<br /> Advances in endovascular intervention in recent years have<br /> transformed patient survival rates and post-surgical quality of<br /> life. It is estimated that more than three million percutaneous<br /> coronary interventions (PCI) and over two million of peripheral<br /> vascular interventions are performed annually worldwide. The<br /> incidence of stroke in the US alone is estimated at 900,000 cases<br /> annually. Compared to open surgery, it has the advantages of faster<br /> recovery, reduced need for general anesthesia, reduced blood loss<br /> and significantly lower mortality. However, the current practice of<br /> endovascular procedures, which virtually has remained unchanged<br /> since the introduction of Intervention four decades ago, is limited<br /> by a number of factors, including physical strain and exposure to<br /> X-Ray radiation of the operator, and involves complex maneuvering<br /> of intervention tools, such as guidewires and catheters, to reach<br /> target areas in the vasculature. Despite recent advancements in<br /> technology and devices, manual procedures are still highly<br /> dependent on the technical skills and training of the operator,<br /> what makes the access to expert medical centers and advanced<br /> emergent treatments, such as endovascular thrombectomy for acute<br /> ischemic stroke, geographically limited. In addition, we believe<br /> that demand for physicians continues to grow faster than<br /> supply.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 7; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Endovascular<br /> robotic systems are aimed to increase the stability and precision<br /> of guidewires and catheters, protecting the physicians from<br /> ionizing radiation and physical strain by removing them from the<br /> radiation source, helping in closing shortages of skilled<br /> physicians and skill gaps and enable tele-interventions (e.g. the<br /> Hub & Spoke hospital model).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Today,<br /> there are only a few commercially available robotic systems for<br /> endovascular interventions. We believe these systems have major<br /> drawbacks, such as limited maneuverability, the requirement to<br /> exchange and use multiple expensive surgical tools, being<br /> cumbersome to set-up and operate, and requiring significant capital<br /> expenditures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Navigating<br /> and placing access devices through tortuous and highly delicate<br /> brain arteries is a complex procedure that requires high-level<br /> surgical skills with specialist training. In many procedures,<br /> surgeons exchange numerous access devices before reaching the<br /> target and applying the therapeutic agent or device, increasing the<br /> risk of adverse events and the exposure of both patient and<br /> physician to radiation. Adverse events, such as perforation of<br /> brain arteries or the release of embolies from a thrombus or<br /> atherosclerotic lesion can have devastating or even fatal<br /> results.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> believes that with its portfolio of CardioSert and LIBERTY<br /> technologies, it is well-positioned to explore and develop such<br /> technologies as neurovascular access devices, with a focus on<br /> improving the ease and access and enhancing the safety of<br /> endovascular interventions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Our<br /> Product Pipeline</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Self-Cleaning<br /> Shunt</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> SCS device is designed to act as the ventricular catheter portion<br /> of a CSF shunt system that is used to treat hydrocephalus and NPH.<br /> It is designed to work as an alternative to any ventricular<br /> catheter options currently on the market and to connect to all<br /> existing shunt system valves currently on the market; therefore,<br /> the successful commercialization of the SCS is not dependent on any<br /> single shunt system. Initially, Microbot expects the SCS device to<br /> be an aftermarket purchase that would be deployed to modify<br /> existing products by the end user. Microbot believes that the use<br /> of its SCS device will be able to reduce, and potentially<br /> eliminate, shunt occlusions, and by doing so, Microbot believes its<br /> SCS has the potential to become the gold standard ventricular shunt<br /> in the treatment of hydrocephalus and NPH.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> SCS device embeds an internal robotic cleaning mechanism in the<br /> lumen, or inside space, of the ventricular catheter which prevents<br /> cell accumulation and tissue ingrowth into the catheter. The SCS<br /> device consists of a silicone tube with a perforated titanium tip,<br /> which connects to a standard shunt valve at its distal end. The<br /> internal cleaning mechanism is embedded in the lumen of the<br /> titanium tip. Once activated, the cleaning mechanism keeps tissue<br /> from entering the catheter perforations while maintaining the CSF<br /> flow in the ventricular catheter.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> internal cleaning mechanism of the SCS device is activated by means<br /> of an induced magnetic field, which is currently designed to be<br /> externally generated by the patient through a user-friendly headset<br /> that transmits the magnetic field at a pre-determined frequency and<br /> operating sequence protocol. The magnetic field that is created by<br /> the headset is then captured by a flexible coil and circuit board<br /> that is placed just under the patient’s scalp in the location where<br /> the valve is located. The circuit board assembly converts the<br /> magnetic field into the power necessary to activate the cleaning<br /> mechanism within the proximal part of the ventricular<br /> catheter.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has completed the development of an SCS prototype and is currently<br /> continuing the safety testing, general proof of concept testing and<br /> performance testing for the device, which Microbot began in<br /> mid-2013. In May 2018, Microbot announced the results of two<br /> pre-clinical studies assessing the SCS, an in-vitro study and a<br /> small animal study. The in-vitro study, which was performed at<br /> Wayne State University by Dr. Carolyn Harris, supports the SCS’s<br /> potential as a viable technology for preventing occlusion in shunts<br /> used to treat hydrocephalus. The first stage animal study designed<br /> to assess the safety profile of the SCS, which was performed by<br /> James Patterson McAllister, PhD, a Professor of Neurosurgery at<br /> Washington University School of Medicine in St. Louis, met the<br /> primary goal to determine the safety of the SCS device that aims to<br /> prevent obstruction in CSF catheters. Following the completion of<br /> the first stage initial studies, Microbot commenced a follow-up<br /> study to further evaluate the safety of the SCS. The follow-up<br /> study was also conducted by leading hydrocephalus experts at<br /> Washington University. The study, included a larger sample size<br /> compared to the initial studies and the primary and secondary<br /> endpoints were to validate the safety of the activated SCS in-vivo<br /> (animal) models. In that in-vivo study the major finding was that<br /> the SCS system is as safe to use as currently marketed devices. The<br /> study also mentions, that in the animal model, contact of the shunt<br /> with the choroid plexus is impossible to avoid and that it may lead<br /> to shunt obstruction due to hemorrhage of this highly vascular<br /> structure.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 8; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> parallel with the in-vivo study, Microbot also contracted with<br /> Envigo CRS Israel, a leading provider of non-clinical contract<br /> research services, to conduct an in-vitro study designed to<br /> evaluate the operational performance of the SCS. Human brain<br /> glioblastoma cells were used in order to assess performance of the<br /> SCS<sup>TM</sup> in a test system with accelerated cell growth,<br /> accumulation and obstruction rates. In 2018, Microbot and Envigo<br /> conducted an in-vitro trial that its final conclusion<br /> was:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While<br /> significant cell growth and accumulation were seen in the<br /> non-operating SCS™ group after 30 days, the shunt openings remained<br /> clear in the constantly operating SCS™ group, with little to no<br /> cell attachment on the robotic cleaning mechanism (the ViRob™<br /> system) and on the shunt openings.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> SCS™ was further validated in a broader follow-up in-vitro study<br /> which commenced in July 2019 and concluded on August 14, 2019 and<br /> clearly demonstrated that the SCS™ prevented shunt occlusions under<br /> the parameters of that study. This follow-up study was also<br /> conducted by Envigo CRS Israel using Human brain glioblastoma cells<br /> Specifically, the study demonstrated:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Significant<br /> cell growth and accumulation in a non-operating SCS™ as well as in<br /> a standard of care ventricular catheters (control<br /> group).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: -10pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A<br /> significant inhibition in cell growth in daily (5-10 minutes) or<br /> weekly (up to 2 hours over the week) operating regimes of the SCS™,<br /> with little cell attachment on the ViRob mechanism.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> effectiveness of the SCS™ device in preventing cells blockage as<br /> compare to standard of care surgical ventricular<br /> catheters.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To<br /> further investigate the efficacy of the SCS™, Microbot conducted a<br /> follow-up in-vitro study at Wayne State University. The study<br /> included a larger sample size compared to the initial study and the<br /> primary and secondary end points aimed to validate the efficacy of<br /> the SCS in comparison to commercially available devices. After<br /> careful analysis of the results the final conclusion was that the<br /> data from this study did not reveal statistically significant<br /> differences between the study’s groups.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> used the findings of the second stage of the animal study combined<br /> with additional experimental data that was acquired in the past<br /> year for initial regulatory FDA pre-submissions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> January 27, 2021, we announced the completion of successful<br /> discussions with the FDA, for the SCS<sup>TM</sup>. After review of<br /> Microbot existing pre-clinical data, the FDA’s feedback will allow<br /> us to apply for the EFS (Early Feasibility Study) without further<br /> animal studies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> expect to continue to work with the FDA towards finalizing the<br /> SCS<sup>TM</sup> design, and to incorporate their feedback prior to<br /> submitting the IDE to seek authorization to begin the EFS clinical<br /> trial. While there can be no assurance that the FDA will approve<br /> the EFS study, the agency’s recent feedback indicates that the<br /> agency will be receptive to allowing a first-in-human study to<br /> proceed based on existing data. After completing the EFS, we would<br /> then seek FDA input on the device design as finalized through the<br /> EFS process in a subsequent IDE filing for approval of a clinical<br /> study proposal. Consequently, the timeline for the submission of<br /> the IDE for First-in-Human clinical trial under the EFS is expected<br /> to commence in the first quarter of 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> spite of the above, there is still a possibility that Microbot may<br /> conduct clinical trials if they are requested by the FDA or if<br /> Microbot decides that the data from such trials would improve the<br /> marketability of the product candidate.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> proposed indication for use of the SCS™ device would be for the<br /> treatment of hydrocephalus and/or NPH as a component of<br /> commercially available shunt systems. It continues to be possible<br /> that the FDA could require us to conduct a human clinical study to<br /> support the safety and efficacy of the SCS and that such clinical<br /> data would need to be part of the future regulatory submission to<br /> authorize marketing of the medical device in the U.S.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>TipCAT</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A<br /> TipCAT prototype was shown to self-propel and self-navigate in<br /> curved plastic pipes and curved ex-vivo colon. In addition, in its<br /> first feasibility study, the prototype device was tested in a live<br /> animal experiment and successfully self-propelled through segments<br /> of the animal’s colon, with no post-procedural damage. All tests<br /> were conducted at AMIT (Alfred Mann Institute of Technology at the<br /> Technion), prior to the licensing of TipCAT by Microbot.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currently,<br /> Microbot is not pursuing the development of the TipCAT as a<br /> colonoscopy tool due to its focus on the neurosurgical and<br /> endovascular intervention spaces, and as such it is currently<br /> exploring the use of the TipCAT for minimally invasive<br /> neurosurgical and endovascular applications to complement its other<br /> technologies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 9; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>LIBERTY</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> LIBERTY robotic system features a unique compact design with the<br /> capability to be operated remotely, reduce radiation exposure and<br /> physical strain to the physician, reduce the risk of cross<br /> contamination, as well as the potential to eliminate the use of<br /> multiple consumables when used with the One & Done<sup>TM</sup><br /> tool or possibly other guidewire/microcatheter technologies.<br /> LIBERTY is being designed to have the following<br /> attributes:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compact<br /> size – Eliminates the need for large capital equipment in dedicated<br /> cath-lab rooms with dedicated staff.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fully<br /> disposable – To our knowledge, the first and only fully disposable,<br /> robotic system for endovascular procedures.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Streamlines<br /> Cath-lab procedures – Compatible with Microbot’s unique One &<br /> Done<sup>TM</sup> tool or possibly other guidewire/microcatheter<br /> technologies, that combines guidewire and microcatheter into a<br /> single device. The “One & Done” tool, when integrated into the<br /> system, is expected to provide full control over tip curvature and<br /> stiffness for maneuverability and access without the need for<br /> constant tool exchanges, while enhancing the operator<br /> experience.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">State<br /> of the art maneuverability – Provides linear, rotational and tip<br /> control of its One & Done<sup>TM</sup> tool when integrated<br /> into the system, as well as linear motion for an additional “over<br /> the wire” device.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compatibility<br /> with a wide range of commercially-available guidewires,<br /> microcatheters and guide-catheters.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Enhanced<br /> operator safety and comfort – Reduces exposure to ionizing<br /> radiation and the need for heavy lead vests otherwise to be worn<br /> during procedures, as well as reducing the exposure to Hospital<br /> Acquired Infections (HAI).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ease<br /> of use – LIBERTY’s intuitive remote controls simplify advanced<br /> procedures while shortening the physician’s learning<br /> curve.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Telemedicine<br /> compatible – Capable of tele-catheterization, carried out remotely<br /> by highly trained specialists.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> are continuing our feasibility animal trials with respect to the<br /> LIBERTY device, with a planned pre-submission to the FDA as early<br /> as the first quarter of 2022, and planned submission to the FDA in<br /> the first half of 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Strategy</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> goal is to generate sales of its products, once they have received<br /> regulatory approval, by establishing SCS, LIBERTY and additional<br /> devices from its technological platforms, as the standard-of-care<br /> in the eyes of doctors, surgeons, patients and medical facilities,<br /> as well as getting the support of payors and insurance companies.<br /> Microbot believes that it can achieve this objective by working<br /> with hospitals to demonstrate the key benefits of its products.<br /> Microbot’s strategy includes the following key elements:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Continue<br /> to refine existing product candidates and develop additional<br /> micro-robotic solutions</b>. As Microbot prepares to bring its<br /> initial product candidates through pre-clinical and clinical<br /> trials, if necessary, and eventually to market, it continues to<br /> focus on improving its product candidates to respond to clinical<br /> data and patient and physician feedback. Microbot also expects to<br /> continue to innovate in the micro-robotics field by continuing to<br /> find ways of using its technology to solve unmet needs, with the<br /> overarching goal of providing a safer, more effective and more<br /> efficient surgical environment for patients and<br /> physicians.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Establish<br /> and leverage relationships with key institutions and leading<br /> clinicians</b>. Microbot’s objective will be to maintain clinical<br /> focus with leading hospitals and clinics so as to establish the<br /> SCS, LIBERTY, as well as other future products, as the standard of<br /> care in such institutions for their respective procedures. Microbot<br /> also expects to identify key clinicians with the relevant<br /> specialties (for instance, neurosurgery or interventional<br /> radiology) with the expectation that such clinical focus will<br /> accelerate the adoption of its candidate products.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Continuously<br /> invest in research and development</b>. Microbot’s most significant<br /> expense has historically been research and development, and<br /> Microbot expects that this will continue in the foreseeable future,<br /> including expenses it expects to incur to improve on its prototype<br /> products in order to respond to clinical data, to develop<br /> additional applications using its technologies and to develop<br /> future product candidates.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Explore<br /> partnerships for the introduction of Microbot’s products</b>.<br /> Microbot intends to focus its marketing and sales efforts initially<br /> on pursuing collaborations with global medical device companies<br /> that have established sales and distribution networks. Microbot<br /> will seek to enter collaborations and partnerships with strategic<br /> players that offer synergies with Microbot’s product candidates and<br /> expertise.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Seek<br /> additional IP and technologies to complement and strengthen<br /> Microbot’s current IP portfolio</b>. Microbot intends to continue<br /> exploring new technologies, IP and know-how to add to its current<br /> portfolio through licensing, mergers and/or acquisitions and to<br /> allow Microbot to enter new spaces and strengthen its overall<br /> product portfolio.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p><!-- Field: Page; Sequence: 10; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>SCS<br /> Opportunities</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> SCS is designed to prevent shunt occlusions in hydrocephalus and<br /> NPH patients who have undergone or are undergoing the surgical<br /> insertion of a shunt system. For purposes of its marketing<br /> strategy, Microbot has split the market for shunt systems into two<br /> sub-markets:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Primary<br /> shunt placement; and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shunt<br /> replacement.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> SCS device is universal (meaning that it is designed to be<br /> attachable to any valve on the market); therefore, Microbot’s<br /> initial go-to-market strategy is the development of strategic<br /> partnerships with leading global medical device companies with<br /> ready sales and distribution channels. Outside of a strategic<br /> partnership, it is most likely that Microbot’s SCS product will be<br /> initially used in shunt replacement surgeries to replace occluded<br /> ventricular catheters. Accordingly, Microbot intends to establish<br /> key hospital and clinic relationships that will allow it to diffuse<br /> the technology among experts and other stakeholders. Microbot is<br /> also planning to apply for the SCS device to be covered under the<br /> current reimbursement codes in the United States for use in<br /> hydrocephalus and NPH shunt procedures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>TipCAT<br /> Opportunities</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> is currently exploring the use of the TipCAT for minimally invasive<br /> neurological and endovascular applications.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>One<br /> & Done<sup>TM</sup> (CardioSert) Opportunities</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> is currently exploring the integration of the One &<br /> Done<sup>TM</sup> technology into the LIBERTY endovascular robotic<br /> system for a range of potential applications in the cardiovascular,<br /> peripheral vascular and neurovascular spaces.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>LIBERTY<br /> Opportunities</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> LIBERTY endovascular robotic system is being designed to remotely<br /> maneuver guidewires, microcatheters and over-the-wire devices<br /> within the body’s vasculature. The device is being designed to be<br /> the size of a hand-held personal device and to be fully disposable<br /> and affordable. We are aiming LIBERTY to be capable of supporting<br /> whole-endovascular procedures by providing solutions which would be<br /> based in part on the One & Done<sup>TM</sup> proprietary<br /> technology or possibly other guidewire/microcatheter technologies.<br /> With control over tip curvature and stiffness for maneuverability<br /> and access – and without the need for constant tool exchanges – the<br /> One & Done<sup>TM</sup> tool, when integrated into the system,<br /> is expected to drastically reduce the procedure time and costs,<br /> while enhancing the operator experience. We believe LIBERTY’s<br /> addressable markets are the Interventional Cardiology,<br /> Interventional Radiology and Interventional Neuroradiology<br /> markets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> unique characteristics of LIBERTY – compact, mobile, disposable and<br /> remotely controlled – open the opportunity of expanding telerobotic<br /> interventions to patients with limited access to life-saving<br /> procedures, such as mechanical thrombectomy in ischemic<br /> stroke.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Competition</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>SCS<br /> Competitive Landscape</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Several<br /> academic research groups, such as at the New Jersey Institute of<br /> Technology, are currently researching sensing and<br /> obstruction-resistant catheter designs, and the Smart Sensors and<br /> Integrated Microsystems (SSIM) Program at Wayne State University<br /> has publicized that it is engaging in smart shunt development<br /> activity. However, based in part on its knowledge of the patented<br /> technologies, Microbot believes that these technologies are still<br /> early in the research and development cycle. Although we believe<br /> the SCS may face direct competition from Anuncia Inc., a spin-off<br /> of Alycone Lifesciences Inc., which received a CE Mark and FDA 510k<br /> clearance for the Alivio ReFlow™ Ventricular System for the<br /> treatment of hydrocephalus, the commercialization status of the<br /> device is not clear. The SCS also faces non-direct competition from<br /> Aqueduct Neurosciences, Inc., which we believe is developing a<br /> non-shunt, electro-mechanical technology platform to control the<br /> draining of cerebrospinal fluid, and from Cerevasc Inc., which is<br /> developing the eShunt<sup>TM</sup> System that aims to eliminate<br /> the need for passing a rigid catheter through cerebral cortex and<br /> subcortical white matter.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> does not expect its SCS device to directly compete against shunt<br /> systems currently available in the market. The SCS device is<br /> designed to replace a component of existing shunt systems and is<br /> expected to be an aftermarket purchase that would be used to modify<br /> existing products by the end user. However, there can be no<br /> assurance that Microbot’s product candidate will be accepted by the<br /> shunt market as an alternative component.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 11; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>TipCAT<br /> Competitive Landscape</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has not at this time completed its evaluation of the current<br /> competitive landscape in the endovascular space for potential uses<br /> of the TipCAT.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>One<br /> & Done<sup>TM</sup> (CardioSert) Competitive<br /> Landscape</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Competition<br /> includes moveable-core guidewires from companies such as Boston<br /> Scientific and Rapid Medical, and steerable and deflectable sheaths<br /> and catheters from companies such as Bendit Technologies, Agile<br /> Devices and Merit Medical. To our knowledge, the CardioSert device<br /> is the only device that combines an inner moveable guidewire and an<br /> outer microcatheter, with the ability to control the shape and<br /> stiffness of the distal tip in a continuous, gradual manner, and<br /> intends to compete on that basis.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>LIBERTY<br /> Competitive Landscape</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> believe the main competitor to the LIBERTY system is the CorPath<br /> GRX vascular robotics system by Corindus Vascular Robotics, a<br /> Siemens Healthineers company. The CorPath GRX system has FDA<br /> approvals for percutaneous coronary interventions (PCI) and<br /> peripheral vascular interventions (PVI) and is pending an approval<br /> for neurovascular interventions. Other competitors include Robocath<br /> (CE Marked for PCI only) and Hansen Medical (a J&J Company with<br /> FDA approval for PVI). We believe these systems have drawbacks,<br /> such as limited maneuverability, the requirement to exchange and<br /> use multiple expensive surgical tools, being cumbersome to set-up<br /> and operate, and requiring significant capital expenditures. We<br /> further believe that these systems have captured a marginal market<br /> share to date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> existing and planned products could also be rendered obsolete or<br /> uneconomical by technological advances developed in the future by<br /> existing or new competitors. Some of Microbot’s competitors<br /> currently have significantly greater resources than Microbot does;<br /> have established relationships with healthcare professionals,<br /> customers and third-party payors; and have long-term contracts with<br /> group purchasing organizations in the United States. In addition,<br /> many of Microbot’s competitors have established distributor<br /> networks, greater resources for product development, sales and<br /> marketing, additional lines of products and the ability to offer<br /> financial incentives such as rebates, bundled products or discounts<br /> on other product lines that Microbot cannot provide.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Intellectual<br /> Property</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> General</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> SCS and TipCAT are based on technological platforms licensed from<br /> The Technion Research and Development Foundation Ltd., or TRDF, as<br /> further discussed below. The LIBERTY platform core technology is<br /> co-owned by Microbot and TRDF. The One & Done<sup>TM</sup><br /> device is based on technologies acquired by Microbot from<br /> CardioSert. Microbot plans to develop other medical-robotic<br /> solutions through internal research and development, to strengthen<br /> its intellectual property position, and to continue exploring<br /> strategic collaborations and accretive acquisition opportunities.<br /> Microbot currently holds an intellectual property portfolio of 47<br /> patents issued/allowed and 29 patent applications pending<br /> worldwide. It also has registered trademarks in Israel, Europe and<br /> the US relating to its LIBERTY platform, and also has trademarks<br /> relating to its proprietary Microbot Medical tradename and logo<br /> registered in Israel, Europe, and the UK, and pending in the US and<br /> China, in addition to having registered trademarks for the “One<br /> & Done” name in Israel, allowed in Europe and pending in the<br /> US, UK, China, and Japan.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> relies or intends to rely on intellectual property licensed or<br /> developed, including patents, trade secrets, trademarks, technical<br /> innovations, laws of unfair competition and various licensing<br /> agreements, to provide its future growth, to build its competitive<br /> position and to protect its technology. As Microbot continues to<br /> expand its intellectual property portfolio, it is critical for<br /> Microbot to continue to invest in filing patent applications to<br /> protect its technology, inventions, and improvements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> requires its employees and consultants to execute confidentiality<br /> agreements in connection with their employment or consulting<br /> relationships with Microbot. Microbot also requires its employees<br /> and consultants who work on its product candidates to agree to<br /> disclose and assign to Microbot all inventions conceived during the<br /> term of their service, while using Microbot property, or which<br /> relate to Microbot’s business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 12; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Patent<br /> applications in the United States and in foreign countries are<br /> maintained in secrecy for a period of time after filing, which<br /> results in a delay between the filing date of the patent<br /> applications and the time when they are published. Patents issued<br /> and patent applications filed relating to medical devices are<br /> numerous, and there can be no assurance that current and potential<br /> competitors and other third parties have not filed or in the future<br /> will not file applications for, or have not received or in the<br /> future will not receive, patents or obtain additional proprietary<br /> rights relating to product candidates, products, devices or<br /> processes used or proposed to be used by Microbot. Microbot<br /> believes that the technologies it employs in its products and<br /> systems do not infringe the valid claims of any third-party<br /> patents. There can be no assurance, however, that third parties<br /> will not seek to assert that Microbot devices and systems infringe<br /> their patents or seek to expand their patent claims to cover<br /> aspects of Microbot’s products and systems.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> medical device industry in general has been characterized by<br /> substantial litigation regarding patents and other intellectual<br /> property rights. Any such claims, regardless of their merit, could<br /> be time-consuming and expensive to respond to and could divert<br /> Microbot’s technical and management personnel. Microbot may be<br /> involved in litigation to defend against claims of infringement by<br /> other patent holders, to enforce patents issued to Microbot, or to<br /> protect Microbot’s trade secrets. If any relevant claims of<br /> third-party patents are upheld as valid and enforceable in any<br /> litigation or administrative proceeding, Microbot could be<br /> prevented from practicing the subject matter claimed in such<br /> patents, or would be required to obtain licenses from the patent<br /> owners of each such patent, or to redesign Microbot’s products,<br /> devices or processes to avoid infringement. There can be no<br /> assurance that such licenses would be available or, if available,<br /> would be available on terms acceptable to Microbot or that Microbot<br /> would be successful in any attempt to redesign products or<br /> processes to avoid infringement. Accordingly, an adverse<br /> determination in a judicial or administrative proceeding or failure<br /> to obtain necessary licenses, could potentially prevent Microbot<br /> from manufacturing and selling its products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> issued U.S. patents, which cover Microbot’s product candidates,<br /> will expire between 2026 and 2040, not including any patent term<br /> adjustments that may be available. Issued patents outside of the<br /> United States directed to Microbot’s product candidates will expire<br /> between 2026 and 2036.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> License Agreement with the Technion</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> June 2012, Microbot entered into a license agreement with TRDF, the<br /> technology transfer subsidiary of The Technion Institute of<br /> Technology, pursuant to which it obtained an exclusive, worldwide,<br /> royalty-bearing, sub-licensable license to certain patents and<br /> inventions relating to the SCS and TipCAT technology platforms<br /> invented by Professor Moshe Shoham, a former director of and an<br /> advisor to the Company, and in certain circumstances other<br /> TRDF-related persons. Pursuant to the terms of the license<br /> agreement, in order to maintain the license with respect to each<br /> platform, Microbot must use commercially reasonable efforts to<br /> develop products covered by the license, including meeting certain<br /> agreed upon development milestones. The milestones for both SCS and<br /> TipCAT include commencing first in human clinical trials by<br /> December 2021. Failure to meet any development milestone will give<br /> TRDF the right to terminate the license with respect to the<br /> technology underlying the missed milestone.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As<br /> partial consideration for the grant of the licenses under the<br /> agreement, Microbot issued a number of shares to TRDF equal to 3%<br /> of its issued and outstanding shares at such time on a fully<br /> diluted basis. Such shares were initially subject to antidilution<br /> protections but are no longer subject to adjustment. In addition,<br /> as partial consideration for the licenses granted, Microbot agreed<br /> to pay TRDF royalties of between 1.5% and 3.0% of net sales of<br /> products covered by the licenses, subject to certain reductions,<br /> and certain percentages of amounts received by Microbot in the<br /> event of sublicensing.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> the case of termination of the license by Microbot without cause or<br /> by TRDF for cause, TRDF has the right to receive a non-exclusive<br /> license from Microbot with respect to improvements to the licensed<br /> technologies made by Microbot. In such cases, TRDF would pay a<br /> royalty of 10% of the income received by TRDF in connection its<br /> sublicensing of such patent right and related intellectual<br /> property. If the license from TRDF were to be terminated with<br /> respect with either of the technology platforms underlying the SCS<br /> or the TipCAT, Microbot would no longer be able to continue its<br /> development of the related product candidate. However, Microbot<br /> believes that its current intellectual property portfolio, and its<br /> ongoing efforts to expand into other micro-robotic surgical<br /> technologies, will give it the flexibility to shift its resources<br /> towards developing and commercializing related products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> addition to the licensed SCS and TipCAT technologies, the LIBERTY<br /> platform, which was invented by employees of Microbot together with<br /> Professor Moshe Shoham of the Technion, in his capacity as a<br /> consultant to Microbot, is co-owned by Microbot and TRDF, and a<br /> process is being conducted for establishing the LIBERTY platform as<br /> a “Joint Invention” in accordance with the terms of the License<br /> Agreement. Once the Joint Invention is established, Microbot will<br /> have to pay TRDF royalties of between 1.5% and 3.0% of net sales of<br /> products covered by this Joint Invention.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Research<br /> and Development</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> research and development programs are generally pursued by<br /> engineers and scientists employed by Microbot in its offices in<br /> Israel on a full-time basis or as consultants, or through<br /> partnerships with industry leaders in manufacturing and design and<br /> researchers in academia. Microbot is also working with<br /> subcontractors in developing specific components of its<br /> technologies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> primary objectives of Microbot’s research and development efforts<br /> are to continue to introduce incremental enhancements to the<br /> capabilities of its candidate products and to advance the<br /> development of proposed products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 13; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has obtained grants from the Israeli Innovation Authority (“IIA”)<br /> for participation in research and development activities since 2013<br /> through 2021. During this time, Microbot has received grant<br /> revenues of approximately $1,500,000. In return, Microbot is<br /> obligated to pay royalties amounting to 3%-3.5% of its future sales<br /> up to the amount of the grant. The grant is linked to the exchange<br /> rate of the dollar to the New Israeli Shekel and bears interest of<br /> USD LIBOR per annum.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under<br /> the terms of the grants and applicable law, Microbot is restricted<br /> from transferring any technologies, know-how, manufacturing or<br /> manufacturing rights developed using the grant outside of Israel<br /> without the prior approval of the Israel Innovation Authority.<br /> Microbot has no obligation to repay the grant, if the SCS project<br /> fails, is unsuccessful or aborted before any sales are generated.<br /> The financial risk is assumed completely by the IIA.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> expects to continue to access government funding in the<br /> future.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For<br /> the fiscal year ended December 31, 2021 and 2020, respectively,<br /> Microbot incurred research and development expenses of<br /> approximately $6,153,000 compared to approximately<br /> $3,396,000.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>SCS</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has already made plans to develop a second version of its SCS<br /> device that will have an embedded controller and battery, initially<br /> to support its animal trials. This alternative design will allow<br /> the cleaning mechanism to be automatically activated, without the<br /> need for the patient’s involvement in the activation<br /> process.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has completed the development of an SCS prototype and is currently<br /> continuing the safety testing, general proof of concept testing and<br /> performance testing for the device, which Microbot began in<br /> mid-2013. In May 2018, Microbot previously announced the results of<br /> two pre-clinical studies assessing the SCS, an in-vitro study and a<br /> small animal study. The in-vitro study, which was performed at<br /> Wayne State University, supports the SCS’s potential as a viable<br /> technology for preventing occlusion in shunts used to treat<br /> hydrocephalus. The animal study designed to assess the safety<br /> profile of the SCS, which was performed at Washington University<br /> School of Medicine in St. Louis, met the primary goal to determine<br /> the safety of the SCS device that aims to prevent obstruction in<br /> CSF catheters. Since the completion of these initial studies,<br /> Microbot conducted a follow-up study to further evaluate the safety<br /> of the SCS. The follow-up study was also conducted by leading<br /> hydrocephalus experts at Washington University and Wayne State<br /> University. The study included a larger sample size compared to the<br /> initial studies and the primary and secondary endpoints seek to<br /> validate the safety and efficacy of the SCS that will be activated<br /> in both in-vitro (lab) and in-vivo (animal) models. In that in-vivo<br /> study, the major finding was that the SCS system is as safe to use<br /> as currently marketed devices.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> conjunction with conducting the follow-up study, Microbot also<br /> contracted with Envigo CRS Israel, to conduct an in-vitro study<br /> designed to evaluate the operational performance of the SCS. The<br /> first Envigo study that was conducted in 2018 used human brain<br /> glioblastoma cells to assess the performance of the SCS in a test<br /> system with accelerated cell growth, accumulation, and obstruction<br /> rates. The performance of a constantly activated (always-on) SCS to<br /> prevent shunt occlusion in the laboratory study was compared with a<br /> non-operating SCS after 30 days, and the results were captured with<br /> photographs shared by Microbot in a press release issued on January<br /> 14, 2019. While significant cell growth and accumulation was seen<br /> in the cell cultures with a non-operating SCS, the shunt openings<br /> within the cells seeded with a constantly operating SCS remained<br /> clear, with little to no cell attachment on the robotic brush<br /> (ViRob) and on the opening where the robotic brush (ViRob) operates<br /> after 30 days of cell culturing and growth. We believe this<br /> experiment validates the operational effectiveness of the SCS to<br /> prevent shunt occlusion and provides additional data to support the<br /> device’s proof of concept. We believe the in-vitro laboratory study<br /> further confirms that the SCS has the ability to operate after<br /> cells have accumulated on the catheter holes and the robotic brush<br /> (ViRob) and to potentially disintegrate existing occlusions formed<br /> on the robotic brush (ViRob) and on the opening where the robotic<br /> brush (ViRob) operates, based on the results from a third test<br /> group in which cells were allowed to grow for four weeks and then<br /> exposed to an activated SCS device. We believe the images captured<br /> by Envigo and Microbot demonstrate that the cleaning mechanism of<br /> the SCS is powerful enough to clear accumulated cells at blocked<br /> pores, as significant improvements were observed in the degree of<br /> shunt obstruction after only a short period of time following<br /> activation of the SCS.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> SCS was further validated in a broader follow-up in-vitro lab study<br /> which commenced in July 2019 and concluded on August 14, 2019 and<br /> clearly demonstrated the device prevented shunt occlusion under the<br /> parameters of that study. This follow-up study was also conducted<br /> by Envigo CRS Israel. Human brain glioblastoma cells were used in<br /> order to assess performance of the SCS in a test system with<br /> accelerated cell growth rate, accumulation and obstruction rates.<br /> Specifically, the study demonstrated:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Significant<br /> cell growth and accumulation in a non-operating SCS as well as a<br /> standard of care surgical shunt.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A<br /> significant inhibition in cell growth in daily (5-10 minutes) or<br /> weekly (up to 2 hours over the week) operating SCS with little cell<br /> attachment on the robotic brush (ViRob) and on the opening where<br /> the robotic brush (ViRob) operates.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> effectiveness of the Company’s SCS devices in preventing cells<br /> blockage as compare to standard of care surgical<br /> shunts.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 14; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> follow-up in vitro (lab) study at Wayne State University included a<br /> larger sample size compared to the initial study and the primary<br /> and secondary end points seek to validate the efficacy of the SCS<br /> while being activated in-vitro (lab). Generally, the data from this<br /> study did not reveal statistically significant trends indicating a<br /> strong preference for any of the designs tested, including the SCS;<br /> therefore, these tests as they stand are inconclusive but have<br /> provided us with trends which Microbot may decide to further<br /> explore.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">After<br /> submitting the existing data to the FDA, on January 27, 2021 we<br /> announced the completion of successful discussions with the FDA,<br /> for the SCS<sup>TM</sup>. After review of our existing pre-clinical<br /> data, the FDA’s feedback will allow us to apply for the EFS. We<br /> expect to continue to work with the FDA towards finalizing the<br /> SCS<sup>TM</sup> design, and to incorporate their feedback prior to<br /> submitting the IDE to seek authorization to begin the EFS clinical<br /> trial. While there can be no assurance that the FDA will approve<br /> the EFS study, the agency’s recent feedback indicates that the<br /> agency will be receptive to allowing a first-in-human study to<br /> proceed based on existing data. After completing the EFS, we would<br /> then seek FDA input on the device design as finalized through the<br /> EFS process in a subsequent IDE filing for approval of a clinical<br /> study proposal. Consequently, the timeline for the submission of<br /> the IDE for First-in-Human clinical trial under the EFS is expected<br /> to commence in the first quarter of 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although<br /> the FDA agreed that the SCS is suitable to apply for an EFS<br /> program, we can give no assurance that the FDA will agree that an<br /> EFS is warranted, in which case we will have to re-commence animal<br /> trials or otherwise re-evaluate the FDA approval process, which<br /> could delay and hinder our ability to commercialize the SCS<br /> device.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>LIBERTY</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> LIBERTY prototype system was tested at our laboratories in an<br /> in-vitro silicone model, using off-the-shelf guidewires and<br /> microcatheters, and showing an ability to successfully provide<br /> linear and rotational movements of the guidewires and linear motion<br /> of the microcatheters. We also conducted a single preliminary<br /> animal trial with the LIBERTY prototype.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> LIBERTY prototype is designed to control the One &<br /> Done<sup>TM</sup> tool; however, the One & Done<sup>TM</sup><br /> tool is not currently expected to be integrated into the next<br /> version of the LIBERTY device. Additionally, we are exploring and<br /> evaluating additional innovative guidewire/microcatheter<br /> technologies to be integrated and combined with the LIBERTY robotic<br /> platform to further enhance the performance of the<br /> system.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since<br /> the One & Done<sup>TM</sup> tool was originally designed for<br /> chronic total occlusion, we are currently working with<br /> subcontractors and guidewire design-houses to perfect the<br /> performance of the One & Done<sup>TM</sup> tool to the<br /> indication that will be selected for the LIBERTY platform. These<br /> may include procedures in the peripheral, coronary or neurovascular<br /> spaces.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Manufacturing</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> does not have any manufacturing facilities or manufacturing<br /> personnel. Microbot currently relies, and expects to continue to<br /> rely, on third parties for the manufacturing of its product<br /> candidates for preclinical and clinical testing, as well as for<br /> commercial manufacturing if its product candidates receive<br /> marketing approval.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Commercialization</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has not yet established a sales, marketing or product distribution<br /> infrastructure for its product candidates, which are still in<br /> development stages. Microbot plans to access the U.S. markets with<br /> its initial device offerings through strategic partnerships but may<br /> develop its own focused, specialized sales force or distribution<br /> channels once it has several commercialized products in its<br /> portfolio. Microbot has not yet developed a commercial strategy<br /> outside of the United States.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Government<br /> Regulation</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>General</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> medical technology products and operations are subject to extensive<br /> regulation in the United States and other countries. Most notably,<br /> if Microbot seeks to sell its products in the United States, its<br /> products will be subject to the Federal Food, Drug, and Cosmetic<br /> Act (FDCA) as implemented and enforced by the U.S. Food and Drug<br /> Administration (FDA). The FDA regulates the development, bench and<br /> clinical testing, manufacturing, labeling, storage, record-keeping,<br /> promotion, marketing, sales, distribution and post-market support<br /> and reporting of medical devices in the United States to ensure<br /> that medical products distributed domestically are safe and<br /> effective for their intended uses. Regulatory policy affecting its<br /> products can change at any time.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 15; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Advertising<br /> and promotion of medical devices in the United States, in addition<br /> to being regulated by the FDA, are also regulated by the Federal<br /> Trade Commission and by state regulatory and enforcement<br /> authorities. Recently, promotional activities for FDA-regulated<br /> products of other companies have been the subject of enforcement<br /> action brought under healthcare reimbursement laws and consumer<br /> protection statutes. In addition, under the federal Lanham Act and<br /> similar state laws, competitors and others can initiate litigation<br /> relating to advertising claims.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Foreign<br /> countries where Microbot wishes to sell its products may require<br /> similar or more onerous approvals to manufacture or market its<br /> products. Government agencies in those countries also enforce laws<br /> and regulations that govern the development, testing,<br /> manufacturing, labeling, advertising, marketing and distribution,<br /> and market surveillance of medical device products. These<br /> regulatory requirements can change rapidly with relatively short<br /> notice.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other<br /> regulations Microbot encounters in the United States and in other<br /> jurisdictions are the regulations that are common to all<br /> businesses, such as employment legislation, implied warranty laws,<br /> and environmental, health and safety standards, to the extent<br /> applicable. In the future, Microbot will also encounter<br /> industry-specific government regulations that would govern its<br /> products, if and when they are developed for commercial<br /> use.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>U.S.<br /> Regulation</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> FDA governs the following activities that Microbot performs, will<br /> perform, upon the clearance or approval of its product candidates,<br /> or that are performed on its behalf, to ensure that medical<br /> products distributed domestically or exported internationally are<br /> safe and effective for their intended uses:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">product<br /> design, and development;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">product<br /> safety, testing, labeling and storage;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">record<br /> keeping procedures; and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">product<br /> marketing.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There<br /> are numerous FDA regulatory requirements governing the approval or<br /> clearance and subsequent commercial marketing of Microbot’s<br /> products. These include:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> timely submission of product listing and establishment registration<br /> information, along with associated establishment user<br /> fees;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">continued<br /> compliance with the Quality System Regulation, or QSR, which<br /> require specification developers and manufacturers, including<br /> third-party manufacturers, to follow stringent design, testing,<br /> control, documentation and other quality assurance procedures<br /> during all aspects of the manufacturing process;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">labeling<br /> regulations and FDA prohibitions against the promotion of products<br /> for uncleared, unapproved or off-label use or<br /> indication;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">clearance<br /> or approval of product modifications that could significantly<br /> affect the safety or effectiveness of the device or that would<br /> constitute a major change in intended use;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Medical<br /> Device Reporting regulations (MDR), which require that<br /> manufacturers keep detailed records of investigations or complaints<br /> against their devices and to report to the FDA if their device may<br /> have caused or contributed to a death or serious injury or<br /> malfunctioned in a way that would likely cause or contribute to a<br /> death or serious injury if it were to recur;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">adequate<br /> use of the Corrective and Preventive Actions process to identify<br /> and correct or prevent significant systemic failures of products or<br /> processes or in trends which suggest same;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">post-approval<br /> restrictions or conditions, including post-approval study<br /> commitments;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">post-market<br /> surveillance regulations, which apply when necessary to protect the<br /> public health or to provide additional safety and effectiveness<br /> data for the device; and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">notices<br /> of correction or removal and recall regulations.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 16; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless<br /> an exemption applies, before Microbot can commercially distribute<br /> medical devices in the United States, Microbot must obtain,<br /> depending on the classification of the device, either prior 510(k)<br /> clearance, 510(k) de-novo clearance or premarket approval (PMA),<br /> from the FDA. The FDA classifies medical devices into one of three<br /> classes based on the degree of risk associated with each medical<br /> device and the extent of regulatory controls needed to ensure the<br /> device’s safety and effectiveness:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class<br /> I devices, which are low risk and subject to only general controls<br /> (e.g., registration and listing, medical device labeling<br /> compliance, MDRs, Quality System Regulations, and prohibitions<br /> against adulteration and misbranding) and, in some cases, to the<br /> 510(k) premarket clearance requirements;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class<br /> II devices, which are moderate risk and generally require 510(k) or<br /> 510(k) de-novo premarket clearance before they may be commercially<br /> marketed in the United States as well as general controls and<br /> potentially special controls like performance standards or specific<br /> labeling requirements; and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class<br /> III devices, which are devices deemed by the FDA to pose the<br /> greatest risk, such as life-sustaining, life-supporting or<br /> implantable devices, or devices deemed not substantially equivalent<br /> to a predicate device. Class III devices generally require the<br /> submission and approval of a PMA supported by clinical trial<br /> data.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> expects the medical products in its pipeline currently to be<br /> classified as Class II. Class II devices are those for which<br /> general controls alone are insufficient to provide reasonable<br /> assurance of safety and effectiveness and there is sufficient<br /> information to establish special controls. Special controls can<br /> include performance standards, post-market surveillance, patient<br /> histories and FDA guidance documents. Premarket review and<br /> clearance by the FDA for these devices is generally accomplished<br /> through the 510(k) or 510(k) de-novo premarket notification<br /> process. As part of the 510(k) or 510(k) de-novo notification<br /> process, FDA may require the following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Development<br /> of comprehensive product description and indications for<br /> use;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Comprehensive<br /> review of predicate devices and development of data supporting the<br /> new product’s substantial equivalence to one or more predicate<br /> devices; and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> appropriate and required, certain types of clinical trials (IDE<br /> submission and approval may be required for conducting a clinical<br /> trial in the US).</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">When<br /> clinical evidence is necessary because non-clinical or animal<br /> testing is unavailable or inadequate to provide the information<br /> needed to advance device development, an Early Feasibility Study<br /> (EFS) for a limited clinical investigation of the device may be<br /> applicable and which we are evaluating with respect to the SCS<br /> device. If the FDA agrees to the EFS approach in general, we will<br /> work to finalize the design of the device, to resolve any questions<br /> from the FDA, and to incorporate the FDA’s feedback prior to<br /> submitting the IDE to seek authorization to begin the EFS clinical<br /> trial. After completing the EFS study, we will then seek FDA input<br /> on the device design as finalized through the EFS process in a<br /> subsequent IDE filing for approval of a pivotal clinical study<br /> proposal.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clinical<br /> trials involve use of the medical device on human subjects under<br /> the supervision of qualified investigators in accordance with<br /> current Good Clinical Practices (GCPs), including the requirement<br /> that all research subjects provide informed consent for their<br /> participation in the clinical study. A written protocol with<br /> predefined end points, an appropriate sample size and<br /> pre-determined patient inclusion and exclusion criteria, is<br /> required before initiating and conducting a clinical trial. All<br /> clinical investigations of devices to determine safety and<br /> effectiveness must be conducted in accordance with the FDA’s<br /> Investigational device Exemption, or IDE, regulations that among<br /> other things, govern investigational device labeling, prohibit<br /> promotion of the investigational device, and specify recordkeeping,<br /> reporting and monitoring responsibilities of study sponsors and<br /> study investigators. If the device presents a “significant risk,”<br /> as defined by the FDA, the agency requires the device sponsor to<br /> submit an IDE application, which must become effective prior to<br /> commencing human clinical trials. The IDE will automatically become<br /> effective 30 days after receipt by the FDA, unless the FDA denies<br /> the application or notifies the company that the investigation is<br /> on hold and may not begin. If the FDA determines that there are<br /> deficiencies or other concerns with an IDE that requires<br /> modification, the FDA may permit a clinical trial to proceed under<br /> a conditional approval. In addition, the study must be approved by,<br /> and conducted under the oversight of, an Institutional Review Board<br /> (IRB) for each clinical site. If the device presents a<br /> non-significant risk to the patient, a sponsor may begin the<br /> clinical trial after obtaining approval for the trial by one or<br /> more IRBs without separate approval from the FDA, but it must still<br /> follow abbreviated IDE requirements, such as monitoring the<br /> investigation, ensuring that the investigators obtain informed<br /> consent, and labeling and record-keeping requirements. 510(k)<br /> clearance typically involves the following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" border="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="text-align: justify; width: 0.5in">●</td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assuming<br /> successful completion of all required testing, a detailed 510(k)<br /> premarket notification or 510(k) de-novo is submitted to the FDA<br /> requesting clearance to market the product. The notification<br /> includes all relevant data from pertinent preclinical and clinical<br /> trials, together with detailed information relating to the<br /> product’s manufacturing controls and proposed labeling, and other<br /> relevant documentation.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 17; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" border="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="text-align: justify; width: 0.5in">●</td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A<br /> 510(k) clearance letter from the FDA will authorize commercial<br /> marketing of the device for one or more specific indications for<br /> use.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" border="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="text-align: justify; width: 0.5in">●</td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">After<br /> 510(k) clearance, Microbot will be required to comply with a number<br /> of post-clearance requirements, including, but not limited to,<br /> Medical Device Reporting and complaint handling, and, if<br /> applicable, reporting of corrective actions. Also, quality control<br /> and manufacturing procedures must continue to conform to QSRs. The<br /> FDA periodically inspects manufacturing facilities to assess<br /> compliance with QSRs, which impose extensive procedural,<br /> substantive, and record keeping requirements on medical device<br /> manufacturers. In addition, changes to the manufacturing process<br /> are strictly regulated, and, depending on the change, validation<br /> activities may need to be performed. Accordingly, manufacturers<br /> must continue to expend time, money and effort in the area of<br /> production and quality control to maintain compliance with QSRs and<br /> other types of regulatory controls.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" border="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="text-align: justify; width: 0.5in">●</td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">After<br /> a device receives 510(k) clearance from the FDA, any modification<br /> that could significantly affect its safety or effectiveness, or<br /> that would constitute a major change in its intended use or<br /> technological characteristics, requires a new 510(k) clearance or<br /> could require a PMA. The FDA requires each manufacturer to make the<br /> determination of whether a modification requires a new 510(k)<br /> notification or PMA in the first instance, but the FDA can review<br /> any such decision. If the FDA disagrees with a manufacturer’s<br /> decision not to seek a new 510(k) clearance or PMA for a particular<br /> change, the FDA may retroactively require the manufacturer to seek<br /> 510(k) clearance or PMA. The FDA can also require the manufacturer<br /> to cease U.S. marketing and/or recall the modified device until<br /> additional 510(k) clearance or PMA approval is<br /> obtained.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" border="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="text-align: justify; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> FDA and the Federal Trade Commission, or FTC, will also regulate<br /> the advertising claims of Microbot’s products to ensure that the<br /> claims Microbot makes are consistent with its regulatory<br /> clearances, that there is scientific data to substantiate the<br /> claims and that product advertising is neither false nor<br /> misleading.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To<br /> obtain 510(k) clearance, Microbot must submit a notification to the<br /> FDA demonstrating that its proposed device is substantially<br /> equivalent to a predicate device (i.e., a device that was in<br /> commercial distribution before May 28, 1976, a device that has been<br /> reclassified from Class III to Class I or Class II, or a<br /> 510(k)-cleared device). The FDA’s 510(k) clearance process<br /> generally takes from three to 12 months from the date the<br /> application is submitted but also can take significantly longer. If<br /> the FDA determines that the device or its intended use is not<br /> substantially equivalent to a predicate device, the device is<br /> automatically placed into Class III, requiring the submission of a<br /> PMA.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There<br /> is no guarantee that the FDA will grant Microbot 510(k) clearance<br /> for its pipeline medical device products, and failure to obtain the<br /> necessary clearances for its products would adversely affect<br /> Microbot’s ability to grow its business. Delays in receipt or<br /> failure to receive the necessary clearances, or the failure to<br /> comply with existing or future regulatory requirements, could<br /> reduce its business prospects.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Devices<br /> that cannot be cleared through the 510(k) process due to lack of a<br /> predicate device but would be considered low or moderate risk may<br /> be eligible for the 510(k) de-novo process. In 1997, the Food and<br /> Drug Administration Modernization Act, or FDAMA added the de novo<br /> classification pathway now codified in section 513(f)(2) of the<br /> FD&C Act. This law established an alternate pathway to classify<br /> new devices into Class I or II that had automatically been placed<br /> in Class III after receiving a Not Substantially Equivalent, or<br /> NSE, determination in response to a 510(k) submission. Through this<br /> regulatory process, a sponsor who receives an NSE determination<br /> may, within 30 days of receipt, request FDA to make a risk-based<br /> classification of the device through what is called a “de novo<br /> request.” In 2012, section 513(f)(2) of the FD&C Act was<br /> amended by section 607 of the Food and Drug Administration Safety<br /> and Innovation Act (FDASIA), in order to provide a second option<br /> for de novo classification. Under this second pathway, a sponsor<br /> who determines that there is no legally marketed device upon which<br /> to base a determination of substantial equivalence can submit a de<br /> novo request to FDA without first submitting a 510(k).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> the event that Microbot receives a Not Substantially Equivalent<br /> determination for either of its device candidates in response to a<br /> 510(k) submission, the Microbot device may still be eligible for<br /> the 510(k) de-novo classification process.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Devices<br /> that cannot be cleared through the 510(k) or 510(k) de-novo<br /> classification process require the submission of a PMA. The PMA<br /> process is much more time consuming and demanding than the 510(k)<br /> notification process. A PMA must be supported by extensive data,<br /> including but not limited to data obtained from preclinical and/or<br /> clinical studies and data relating to manufacturing and labeling,<br /> to demonstrate to the FDA’s satisfaction the safety and<br /> effectiveness of the device. After a PMA application is submitted,<br /> the FDA’s in-depth review of the information generally takes<br /> between one and three years and may take significantly longer. If<br /> the FDA does not grant 510(k) clearance to its products, there is<br /> no guarantee that Microbot will submit a PMA or that if Microbot<br /> does, that the FDA would grant a PMA approval of Microbot’s<br /> products, either of which would adversely affect Microbot’s<br /> business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> is currently evaluating whether it is appropriate for it to seek<br /> 510(k) clearance, given the technological features of the SCS<br /> device and the FDA’s recent announcements about enhancing the<br /> 510(k) process to further ensure safety and efficacy. However, the<br /> Company believes that given the similarities between the SCS and<br /> some cleared predicate devices, there is a reasonable likelihood<br /> that a de novo application might be acceptable to the<br /> FDA.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 18; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Foreign<br /> Regulation</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> addition to regulations in the United States, Microbot will be<br /> subject to a variety of foreign regulations governing clinical<br /> trials, marketing authorization and commercial sales and<br /> distribution of its products in foreign countries. The approval<br /> process varies from country to country, and the time may be longer<br /> or shorter than that required for FDA approval or clearance. The<br /> requirements governing the conduct of clinical trials, product<br /> licensing, pricing and reimbursement vary greatly from country to<br /> country.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">International<br /> sales of medical devices are subject to foreign governmental<br /> regulations which vary substantially from country to country.<br /> Whether or not Microbot obtains FDA approval or clearance for its<br /> products, Microbot will be required to make new regulatory<br /> submissions to the comparable regulatory authorities of foreign<br /> countries before Microbot can commence clinical trials or marketing<br /> of the product in such countries. The time required to obtain<br /> certification or approval by a foreign country may be longer or<br /> shorter than that required for FDA clearance or approval, and the<br /> requirements may differ. Below are summaries of the regulatory<br /> systems for medical devices in Europe and Israel, where Microbot<br /> currently anticipates marketing its products. However, its products<br /> may also be marketed in other countries that have different systems<br /> or minimal requirements for medical devices.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Europe</b>.<br /> The primary regulatory body in Europe is the European Union, or<br /> E.U., which consists of 27 member states and has a coordinated<br /> system for the authorization of medical devices.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> E.U. has adopted legislation, in the form of directives to be<br /> implemented in each member state, concerning the regulation of<br /> medical devices within the European Union. The directives include,<br /> among others, the Medical Device Regulation, or MDR, that<br /> establishes certain requirements with which medical devices must<br /> comply before they can be commercialized in the European Economic<br /> Area, or EEA (which comprises the member states of the E.U. plus<br /> Norway, Liechtenstein and Iceland). Under the MDR, medical devices<br /> are classified into four Classes, I, IIa, IIb, and III, with Class<br /> I being the lowest risk and Class III being the highest<br /> risk.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> order to commercialize medical devices in the European Union, a CE<br /> Mark certificate is needed. This certification verifies that a<br /> device meets all regulatory requirements for medical devices, which<br /> will soon change under the new Medical Devices Regulation (MDR<br /> 2017/745). The CE approval process in Europe is summarized<br /> below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To<br /> obtain CE Marking certification, comply with European Commission<br /> Regulation (EU) No. 2017/745, commonly known as the Medical Device<br /> Regulation (MDR).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">  </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Appoint<br /> a Person Responsible for regulatory compliance. Determine<br /> classification of device – Class I (self-certified); Class I<br /> (sterile, measuring or reusable surgical instrument); Class IIa,<br /> Class IIb, or Class III.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">  </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For<br /> all devices except Class I (self-certified), implement a Quality<br /> Management System (QMS) in accordance with the MDR. Companies<br /> usually apply the EN ISO 13485 standard to achieve compliance. The<br /> QMS must include Clinical Evaluation, Post-Market Surveillance<br /> (PMS) and Post Market Clinical Follow-up (PMCF) plans. Make<br /> arrangements with suppliers about unannounced Notified Body audits.<br /> For Class I (self-certified), implement a QMS though Notified Body<br /> intervention is not required.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">  </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prepare<br /> a CE Technical File or Design Dossier (Class III) providing<br /> information about the device and its intended use plus testing<br /> reports, Clinical Evaluation Report (CER), risk management file,<br /> Instruction For Use (IFU), labeling and more. Obtain a Unique<br /> Device Identifier (UDI) for the device. All devices, even legacy<br /> products in use for decades, will require clinical data. Most of<br /> these data should refer to the subject device. Clinical studies are<br /> generally required for implantable and Class III devices. Existing<br /> clinical data may be acceptable. Clinical trials in Europe must be<br /> pre-approved by a European Competent Authority.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">  </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> the company does not have a location in Europe, appoint an<br /> Authorized Representative (EC REP) located in the EU who is<br /> qualified to handle regulatory issues. Place the EC REP name and<br /> address on device label. Obtain a Single Registration Number from<br /> the regulators.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">  </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For<br /> all devices except Class I (self-certified), the QMS and Technical<br /> File or Design Dossier must be audited by a Notified Body, a third<br /> party accredited by European authorities to audit medical device<br /> companies and products.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">  </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For<br /> all devices except Class I (self-certified), the company will be<br /> issued a European CE Marking Certificate for the device and an ISO<br /> 13485 certificate for the company’s facility following successful<br /> completion of the Notified Body audit. ISO 13485 certification must<br /> be renewed every year. CE Marking certificates are typically valid<br /> for a maximum of 5 years, but are typically reviewed during the<br /> annual surveillance audit.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">  </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prepare<br /> a Declaration of Conformity, a legally binding document prepared by<br /> the manufacturer stating that the device is in compliance with the<br /> applicable European requirements. At this time, the CE Marking may<br /> be affixed.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">  </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Register<br /> the device and its Unique Device Identifier (UDI) in the EUDAMED<br /> database. UDI must be on label and associated with the regulatory<br /> documents.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">  </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For<br /> Class I (self-certified), annual NB audits are not required.<br /> However, CER, Technical File, and PMS activities must be kept<br /> updated. For all other classes, the company will be audited each<br /> year by a Notified Body to ensure ongoing compliance with the MDR.<br /> Failure to pass the audit will invalidate the CE Marking<br /> certificate. The company must perform Clinical Evaluation, PMS, and<br /> PMCF.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 19; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> intends to apply for the CE Mark for each of its medical device<br /> products. There is no guarantee that Microbot will be granted a CE<br /> Mark for all or any of its pipeline products and failure to obtain<br /> the CE Mark would adversely affect its ability to grow its<br /> business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Israel</b>.<br /> Israel’s Medical Devices Law generally requires the registration of<br /> all medical products with the Ministry of Health, or MOH, Registrar<br /> as a precondition for production and distribution in Israel.<br /> Special exemptions may apply under limited circumstances and for<br /> purposes such as the provision of essential medical treatment,<br /> research and development of the medical device, and personal use,<br /> among others.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Registration<br /> of medical devices requires the submission of an application to the<br /> Ministry of Health Medical Institutions and Devices Licensing<br /> Department, or AMAR. An application for the registration of a<br /> medical device includes the following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name<br /> and address of the manufacturer, and of the importer as<br /> applicable;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description<br /> of the intended use of the medical device and of its medical<br /> indications;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Technical<br /> details of the medical device and of its components, and in the<br /> event that the device or the components are not new, information<br /> should be provided on the date or renovation;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certificate<br /> attesting to the safety of the device, issued by a competent<br /> authority of one of the following countries: Australia, Canada,<br /> European Community (EC), Member States (MSs), Israel, Japan, or the<br /> United States;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information<br /> on any risk which may be associated with the use of the device<br /> (including precautionary measures to be taken);</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Instructions<br /> for use of the device in Hebrew; the MOH may allow the instructions<br /> to be in English for certain devices;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Details<br /> of the standards to which the device complies;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description<br /> of the technical and maintenance services, including periodic<br /> checks and inspections; and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Declaration,<br /> as appropriate: of the local manufacturer/importer, and of the<br /> foreign manufacturer.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> the application includes a certificate issued by a competent<br /> authority of one of the following “recognized” countries:<br /> Australia, Canada, European Community (CE) Member States (MSs),<br /> Japan, or the United States, the registration process is generally<br /> expedited, but could still take 6-9 months for approval. If such<br /> certificate is not available, the registration process will take<br /> significantly longer and a license is rarely issued. Furthermore,<br /> the MOH will determine what type of testing is needed. In general,<br /> in the case of Israeli manufactured devices that are not registered<br /> or authorized in any “recognized” country, the application requires<br /> presentation of a risk analysis, a clinical evaluation, a summary<br /> of the clinical trials, and expert opinions regarding the device’s<br /> safety and effectiveness. Additional requirements may apply during<br /> the registration period, including follow-up reviews, to improve<br /> the quality and safety of the devices.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">According<br /> to regulations issued by Israel’s Minister of Health in June 2013,<br /> a decision on a request to register a medical device must be<br /> delivered by AMAR within 120 days from the date of the request,<br /> although this rarely occurs. The current rules for the registration<br /> of medical devices do not provide for an expedited approval<br /> process.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Once<br /> granted by the MOH, a license (marketing authorization) for a<br /> medical device is valid for five years from the date of<br /> registration of the device, except for implants with a<br /> life-supporting function, for which the validity is for only two<br /> years from the date of registration. Furthermore, the holder of the<br /> license, the Israeli Registration Holder, or IRH, must do the<br /> following to maintain its license:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reside<br /> and maintain a place of business in Israel and serve as the<br /> regulatory representative.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Respond<br /> to questions from AMAR concerning the registered<br /> products.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Report<br /> adverse events to AMAR.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Renew<br /> the registration on time to keep the market approval<br /> active.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 20; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Comply<br /> with post-marketing requirements, including reporting of adverse<br /> and unexpected events occurring in Israel or in other countries<br /> where the device is in use.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Getting<br /> a device listed on Israel’s four major Sick Funds (health insurance<br /> entities) is also necessary in order for Israeli hospitals and<br /> health care providers to order such products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> intends to apply for a license from the MOH for each of its medical<br /> devices. There is no guarantee that Microbot will be granted<br /> licenses for its pipeline products and failure to obtain such<br /> licenses would adversely affect its ability to grow its<br /> business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Employees</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> Chief Executive Officer, President and Chairman, Harel Gadot, along<br /> with 3 full-time employees, are based in Microbot’s U.S. office<br /> located in Hingham, Massachusetts. Additionally, Microbot currently<br /> has 17 full-time employees based in its office located in Yokneam,<br /> Israel. These employees oversee day-to-day operations of the<br /> Company supporting management and leading engineering,<br /> manufacturing, intellectual property and administration functions<br /> of the Company. As required, Microbot also engages consultants to<br /> provide services to the Company, including regulatory, legal and<br /> corporate services. We are subject to labor laws and regulations<br /> within our locations in the U.S. and Israel. These laws and<br /> regulations principally concern matters such as pensions, paid<br /> annual vacation, paid sick days, length of the workday and work<br /> week, minimum wages, overtime pay, insurance for work-related<br /> accidents, severance pay and other conditions of employment.<br /> Microbot has no unionized employees.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 1A. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_003"/>Risk Factors</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>This<br /> Annual Report on Form 10-K contains forward-looking statements that<br /> involve risks and uncertainties. Our business, operating results,<br /> financial performance, and share price may be materially adversely<br /> affected by a number of factors, including but not limited to the<br /> following risk factors, any one of which could cause actual results<br /> to vary materially from anticipated results or from those expressed<br /> in any forward-looking statements made by us in this Annual Report<br /> on Form 10-K or in other reports, press releases or other<br /> statements issued from time to time. Additional factors that may<br /> cause such a difference are set forth elsewhere in this Annual<br /> Report on Form 10-K. Forward-looking statements speak only as of<br /> the date of this report. We do not undertake any obligation to<br /> publicly update any forward-looking statements.</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to Microbot’s Financial Position and Need for Additional<br /> Capital</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot has had no revenue and has incurred significant operating<br /> losses since inception and is expected to continue to incur<br /> significant operating losses for the foreseeable future. The<br /> Company may never become profitable or, if achieved, be able to<br /> sustain profitability.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has incurred significant operating losses since its inception and<br /> expects to incur significant losses for the foreseeable future as<br /> Microbot continues its preclinical and clinical development<br /> programs for its existing product candidates, primarily the SCS and<br /> LIBERTY devices; its research and development of any other future<br /> product candidates; and all other work necessary to obtain<br /> regulatory clearances or approvals for its product candidates in<br /> the United States and other markets. In the future, Microbot<br /> intends to continue conducting micro-robotics research and<br /> development; performing necessary animal and clinical testing;<br /> working towards medical device regulatory compliance; and, if SCS,<br /> LIBERTY or other future product candidates are approved or cleared<br /> for commercial distribution, engaging in appropriate sales and<br /> marketing activities that, together with anticipated general and<br /> administrative expenses, will likely result in Microbot incurring<br /> further significant losses for the foreseeable future.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> is a development-stage medical device company and currently<br /> generates no revenue from product sales, and may never be able to<br /> commercialize SCS, LIBERTY, TipCAT or other future product<br /> candidates. Microbot does not currently have the required approvals<br /> or clearances to market or test in humans the SCS, LIBERTY, TipCAT,<br /> or any other future product candidates and Microbot may never<br /> receive them. Microbot does not anticipate generating significant<br /> revenues until it can successfully develop, commercialize and sell<br /> products derived from its product pipeline, of which Microbot can<br /> give no assurance. Even if Microbot or any of its future<br /> development partners succeed in commercializing any of its product<br /> candidates, Microbot may never generate revenues significant enough<br /> to achieve profitability.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because<br /> of the numerous risks and uncertainties associated with its product<br /> development pipeline and strategy, Microbot cannot accurately<br /> predict when it will achieve profitability, if ever. Failure to<br /> become and remain profitable would depress the value of the Company<br /> and could impair its ability to raise capital, which may force the<br /> Company to curtail or discontinue its research and development<br /> programs and/or day-to-day operations. Furthermore, there can be no<br /> assurance that profitability, if achieved, can be sustained on an<br /> ongoing basis.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 21; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot has a limited operating history, which may make it<br /> difficult to evaluate the prospects for the Company’s future<br /> viability.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has a limited operating history upon which an evaluation of its<br /> business plan or performance and prospects can be made. The<br /> business and prospects of Microbot must be considered in the light<br /> of the potential problems, delays, uncertainties and complications<br /> that may be encountered in connection with a newly established<br /> business. The risks include, but are not limited to, the<br /> possibility that Microbot will not be able to develop functional<br /> and scalable products, or that although functional and scalable,<br /> its products will not be economical to market; that its competitors<br /> hold proprietary rights that may preclude Microbot from marketing<br /> such products; that its competitors market a superior or equivalent<br /> product; that Microbot is not able to upgrade and enhance its<br /> technologies and products to accommodate new features and expanded<br /> service offerings; or the failure to receive necessary regulatory<br /> clearances or approvals for its products. To successfully introduce<br /> and market its products at a profit, Microbot must establish brand<br /> name recognition and competitive advantages for its products. There<br /> are no assurances that Microbot can successfully address these<br /> challenges. If it is unsuccessful, Microbot and its business,<br /> financial condition and operating results could be materially and<br /> adversely affected.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> operations to date have been limited to organizing the company,<br /> entering into licensing arrangements to initially obtain rights to<br /> its technologies, developing and securing its technologies, raising<br /> capital, developing regulatory and reimbursement strategies for its<br /> product candidates and preparing for pre-clinical and clinical<br /> trials of the SCS, LIBERTY and TipCAT. Microbot has not yet<br /> demonstrated its ability to successfully complete development of<br /> any product candidate, obtain marketing clearance or approval,<br /> manufacture a commercial-scale product or arrange for a third party<br /> to do so on its behalf, or conduct sales and marketing activities<br /> necessary for successful product commercialization. Consequently,<br /> any predictions made about Microbot’s future success or viability<br /> may not be as accurate as they could be if Microbot had a longer<br /> operating history.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot may need additional funding. If Microbot is unable to<br /> raise capital when needed, it could be forced to delay, reduce or<br /> eliminate its product development programs or commercialization<br /> efforts.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To<br /> date, Microbot has funded its operations primarily through<br /> offerings of debt and equity securities, grants and loans. Microbot<br /> does not know when, or if, it will generate any revenue, but does<br /> not expect to generate significant revenue unless and until it<br /> obtains regulatory clearance or approval of and commercializes one<br /> of its current or future product candidates. It is anticipated that<br /> the Company will continue to incur losses for the foreseeable<br /> future, and that losses will increase as it continues the<br /> development of, and seeks regulatory review of, its product<br /> candidates, and begins to commercialize any approved or cleared<br /> products following a successful regulatory review.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> expects the research and development expenses of the Company to<br /> increase substantially in future periods as it conducts<br /> pre-clinical studies in large animals and potentially clinical<br /> trials for its product candidates, and especially if it initiates<br /> additional research programs for future product candidates,<br /> including LIBERTY. In addition, if the Company obtains marketing<br /> clearance or approval for any of its product candidates, it expects<br /> to incur significant commercialization expenses related to product<br /> manufacturing, marketing and sales. Microbot may also require<br /> additional funds for operations if it loses its current lawsuit<br /> with Empery and Hudson Bay, discussed in great detail elsewhere in<br /> this Annual Report on Form 10-K. Furthermore, Microbot incurs<br /> substantial costs associated with operating as a public company in<br /> the United States. Accordingly, the Company may need to obtain<br /> substantial additional funding in connection with its continuing<br /> operations through its projected profitability, of which it can<br /> give no assurance of success. If the Company is unable to raise<br /> capital when needed or on attractive terms, it could be forced to<br /> delay, reduce or eliminate its research and development programs or<br /> any future commercialization efforts.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company intends to continue to opportunistically strengthen its<br /> balance sheet by raising additional funds through equity offerings,<br /> including possibly through its existing At-the-Market offering, or<br /> otherwise in order to meet expected future liquidity needs,<br /> including the introduction of the SCS device into the hydrocephalus<br /> and NPH market, and the introduction of LIBERTY. The Company’s<br /> future capital requirements, generally, will depend on many<br /> factors, including:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> timing and outcomes of the product candidates’ regulatory reviews,<br /> subsequent approvals or clearances, or other regulatory<br /> actions;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> final outcome of the Company’s existing lawsuit with Empery and<br /> Hudson Bay;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> costs, design, duration and any potential delays of the clinical<br /> trials that could be conducted at the FDA’s request using<br /> Microbot’s product candidates;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> costs of acquiring, licensing or investing in new and existing<br /> businesses, product candidates and technologies;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> costs to maintain, expand and defend the scope of Microbot’s<br /> intellectual property portfolio;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> costs to secure or establish sales, marketing and commercial<br /> manufacturing capabilities or arrangements with third parties<br /> regarding same;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> Company’s need and ability to hire additional management and<br /> scientific and medical personnel; and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> costs to operate as a public company in the United<br /> States.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 22; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>An<br /> epidemic of the coronavirus disease is ongoing and may result in<br /> significant disruptions to our clinical trials or other business<br /> operations, which could have a material adverse effect on our<br /> business.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An<br /> epidemic of the coronavirus disease is ongoing throughout the<br /> world. Although we have not yet commenced clinical trials, in the<br /> event the pandemic is continuing when we are prepared to commence<br /> such trials, the coronavirus disease may cause significant delays<br /> and disruptions to our clinical trials and our interactions with<br /> the FDA. If the patients involved with any such clinical trials<br /> become infected with the coronavirus disease, we may have more AEs<br /> and deaths in our clinical trials as a result. We may also face<br /> difficulties enrolling patients in our clinical trials if the<br /> patient populations that are eligible for our clinical trials are<br /> impacted by the coronavirus disease. Additionally, if our clinical<br /> trial patients are unable to travel to our clinical trial sites as<br /> a result of quarantines or other restrictions resulting from the<br /> coronavirus disease, we may experience higher drop-out rates or<br /> delays in our clinical trials, and some patients may not be able to<br /> comply with clinical trial protocols if quarantines impede patient<br /> movement or interrupt healthcare services, which could impact our<br /> ability to determine the efficacy or safety of our SCS or LIBERTY<br /> device. Site initiation and patient enrollment may also be delayed<br /> due to prioritization of hospital resources toward the coronavirus<br /> disease outbreak.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,<br /> travel restrictions and expanded screenings have been implemented<br /> worldwide in an effort to contain the coronavirus disease. As such,<br /> we and our contract research organizations may be unable to visit<br /> our trial sites and monitor the data from our trials on timely<br /> basis. Our employees may also face travel restrictions, which would<br /> impact our business. Furthermore, some of our manufacturers and<br /> suppliers are in Europe and may be impacted by port closures and<br /> other restrictions resulting from the coronavirus outbreak, which<br /> may disrupt our supply chain or limit our ability to obtain<br /> sufficient materials for our products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> ultimate impact of the coronavirus disease outbreak or a similar<br /> health epidemic is highly uncertain and subject to change, and we<br /> cannot presently predict the scope and severity of any further<br /> potential business shutdowns or disruptions, but if we or any of<br /> the third parties with whom we engage, including the suppliers,<br /> clinical trial sites, contract research organizations, regulators,<br /> including the FDA health care providers and other third parties<br /> with whom we conduct business, were to experience shutdowns or<br /> other business disruptions, our ability to conduct our business and<br /> operations could be materially and negatively impacted, which could<br /> prevent or delay us from obtaining approval for our SCS and LIBERTY<br /> devices.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to the Development and Commercialization of Microbot’s<br /> Product Candidates</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Unsuccessful animal studies, clinical trials or procedures relating<br /> to product candidates under development could have a material<br /> adverse effect on Microbot’s prospects.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> regulatory approval process for new products and new indications<br /> for existing products requires extensive data and procedures,<br /> including the development of regulatory and quality standards and,<br /> potentially, certain clinical studies. Unfavorable or inconsistent<br /> data from current or future clinical trials or other studies<br /> conducted by Microbot or third parties, or perceptions regarding<br /> such data, could adversely affect Microbot’s ability to obtain<br /> necessary device clearance or approval and the market’s view of<br /> Microbot’s future prospects. Specifically, the interim data of our<br /> animal trial with respect to the SCS device suggests that the<br /> animal trial results are inconclusive to assess safety. As a<br /> result, we have submitted the existing data to the FDA as part of a<br /> pre-submission meeting and we intend to apply for a limited<br /> clinical investigation of the device known as an Early Feasibility<br /> Study (EFS).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Failure<br /> to successfully complete these studies, or any similar studies with<br /> respect to any of our other product candidates, in a timely and<br /> cost-effective manner could have a material adverse effect on<br /> Microbot’s prospects with respect to the SCS device or such other<br /> product candidates. Because animal trials, clinical trials and<br /> other types of scientific studies are inherently uncertain, there<br /> can be no assurance that these trials or studies will be completed<br /> in a timely or cost-effective manner or result in a commercially<br /> viable product. Clinical trials or studies may experience<br /> significant setbacks even if earlier preclinical or animal studies<br /> have shown promising results. Furthermore, preliminary results from<br /> clinical trials may be contradicted by subsequent clinical<br /> analysis. Results from clinical trials may also not be supported by<br /> actual long-term studies or clinical experience. If preliminary<br /> clinical results are later contradicted, or if initial results<br /> cannot be supported by actual long-term studies or clinical<br /> experience, Microbot’s business could be adversely affected.<br /> Clinical trials also may be suspended or terminated by us, the FDA<br /> or other regulatory authorities at any time if it is believed that<br /> the trial participants face unacceptable health risks. The FDA may<br /> disagree with our interpretation of the data from our clinical<br /> trials, or may find the clinical trial design, conduct or results<br /> inadequate to demonstrate safety and effectiveness of the product<br /> candidate. The FDA may also require additional pre-clinical studies<br /> or clinical trials which could further delay approval of our<br /> product candidates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 23; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot’s business depends heavily on the success of its lead<br /> product candidates, the SCS and LIBERTY. If Microbot is unable to<br /> commercialize the SCS or LIBERTY, or experiences significant delays<br /> in doing so, Microbot’s business will be materially<br /> harmed.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As<br /> stated above, we applied for an EFS for the SCS device and the FDA<br /> agreed that the SCS is suitable to apply for the submission of the<br /> IDE for the EFS program. After completing the EFS, we would then<br /> seek FDA input on the device design as finalized through the EFS<br /> process in a subsequent IDE filing for approval of a clinical study<br /> proposal. Consequently, the timeline for the submission of the IDE<br /> for First-In-Human clinical trials under the EFS is expected to<br /> commence in the first quarter of 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Generally,<br /> after all necessary clinical and performance data supporting the<br /> safety and effectiveness of the SCS or LIBERTY devices, or any<br /> other product candidate, are collected, Microbot must still obtain<br /> FDA clearance or approval to market the device and those regulatory<br /> processes can take several months to several years to be completed.<br /> Therefore, Microbot’s ability to generate product revenues will not<br /> occur for at least the next few years, if at all, and will depend<br /> heavily on the successful commercialization of SCS device and/or<br /> the LIBERTY device, or any of our other product candidates from<br /> time to time. The success of commercializing any of our product<br /> candidates, include the SCS and LIBERTY devices, will depend on a<br /> number of factors, including the following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our<br /> ability to obtain additional capital;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">With<br /> respect to the SCS device, approval of the FDA to participate in an<br /> EFS program and/or successful completion of animal studies and, if<br /> necessary, additional human clinical trials (beyond the EFS trials)<br /> and the collection of sufficient data to demonstrate that the<br /> device is safe and effective for its intended use;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">With<br /> respect to all of our product candidates, successful completion of<br /> animal studies and, if necessary, human clinical trials and the<br /> collection of sufficient data to demonstrate that the device is<br /> safe and effective for its intended use;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">receipt<br /> of marketing approvals or clearances from the FDA and other<br /> applicable regulatory authorities;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">establishing<br /> commercial manufacturing arrangements with one or more third<br /> parties;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtaining<br /> and maintaining patent and trade secret protections;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">protecting<br /> Microbot’s rights in its intellectual property<br /> portfolio;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">establishing<br /> sales, marketing and distribution capabilities;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">generating<br /> commercial sales, if and when approved, whether alone or in<br /> collaboration with other entities;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">acceptance<br /> of our product candidates, if and when commercially launched, by<br /> the medical community, patients and third-party payors;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">effectively<br /> competing with existing and competitive products on the market and<br /> any new competing products that may enter the market;<br /> and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintaining<br /> quality and an acceptable safety profile of our products following<br /> clearance or approval.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> Microbot does not achieve one or more of these factors in a timely<br /> manner or at all, it could experience significant delays or an<br /> inability to successfully commercialize the SCS, LIBERTY or any<br /> other product candidate, which would materially harm its<br /> business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot’s ability to expand its technology platforms for other<br /> uses, including endovascular neurosurgery other than for the<br /> treatment of hydrocephalus, may be limited.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">After<br /> spending time working with experts in the field, Microbot has<br /> decided to no longer pursue the use of TipCAT in colonoscopy and<br /> has instead committed to focus on expanding all of its technology<br /> platforms for use in segments of the endovascular neurosurgery<br /> market, including traumatic brain injury, to capitalize on its<br /> existing competencies in hydrocephalus and the market’s needs.<br /> Microbot’s ability to expand its technology platforms for use in<br /> the endovascular neurosurgery market will be limited by its ability<br /> to develop and/or refine the necessary technology, obtain the<br /> necessary regulatory approvals for their use on humans, and the<br /> marketing of its products and otherwise obtaining market acceptance<br /> of its product in the United States and in other<br /> countries.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 24; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> At this time, Microbot does not know whether the FDA will require<br /> it to submit clinical data in support of its future marketing<br /> applications for its SCS product candidate, particularly in light<br /> of recent initiatives by the FDA to enhance and modernize its<br /> approach to medical device safety and innovation, which creates<br /> uncertainty for Microbot as well as the possibility of increased<br /> product development costs and time to market.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although<br /> Microbot has identified a predicate device for its lead product<br /> candidate, the SCS, which it intended to use in its 510(k)<br /> application, it may determine that a 510(k) de novo application is<br /> more appropriate for the SCS. If the Company determines to proceed<br /> with the 510(k) application and the FDA agrees with the Company’s<br /> determination, the SCS will be classified by the FDA as Class II<br /> and eligible for marketing pursuant to FDA clearance through the<br /> 510(k) application. However, in light of recent initiatives by the<br /> FDA relating to safety, efficacy and the inconclusive results of<br /> the animal and laboratory trial, there is no guarantee that the FDA<br /> will agree with the Company’s determination or that the FDA would<br /> accept the predicate device that Microbot intends to submit in its<br /> 510(k). The FDA also may request additional data in response to a<br /> 510(k), or require Microbot to conduct further testing or compile<br /> more data in support of its 510(k). Such additional data could<br /> include clinical data that must be derived from human clinical<br /> studies that are designed appropriately to address the potential<br /> questions from the FDA regarding a proposed product’s safety or<br /> effectiveness. It is unclear at this time whether and how various<br /> activities recently initiated or announced by the FDA to modernize<br /> the U.S. medical device regulatory system could affect the<br /> marketing pathway or timeline for our product candidate, given the<br /> timing and the undeveloped nature of some of the FDA’s new medical<br /> device safety and innovation initiatives. One of the recent<br /> initiatives was announced in April 2018, when the FDA Commissioner<br /> issued a statement with the release of a Medical Device Safety<br /> Action Plan. Among other key areas of the Medical Device Safety<br /> Action Plan, the Commissioner stated that the FDA is “exploring<br /> what further actions we can take to spur innovation towards<br /> technologies that can make devices and their use safer. For<br /> instance, our Breakthrough Device Program that helps address unmet<br /> medical needs can be used to facilitate patient access to<br /> innovative new devices that have important improvements to patient<br /> safety. We’re considering developing a similar program to support<br /> the development of safer devices that do not otherwise meet the<br /> Breakthrough Program criteria, but are clearly intended to be safer<br /> than currently available technologies.” This type of program may<br /> negatively affect our existing development plan for the SCS or any<br /> other product candidate or it may benefit Microbot, but at this<br /> time those potential impacts from recent FDA medical device<br /> initiatives are unknown and uncertain. Similarly, the FDA<br /> Commissioner announced various agency goals under a Medical<br /> Innovation Access Plan in 2017.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> the FDA does require clinical data to be submitted as part of the<br /> SCS marketing submission, any type of clinical study performed in<br /> humans will require the investment of substantial expense,<br /> professional resources and time. In order to conduct a clinical<br /> investigation involving human subjects for the purpose of<br /> demonstrating the safety and effectiveness of a medical device, a<br /> company must, among other things, apply for and obtain<br /> Institutional Review Board, or IRB, approval of the proposed<br /> investigation. In addition, if the clinical study involves a<br /> “significant risk” (as defined by the FDA) to human health, the<br /> sponsor of the investigation must also submit and obtain FDA<br /> approval of an Investigational Device Exemption, or IDE,<br /> application. Microbot may not be able to obtain FDA and/or IRB<br /> approval to undertake clinical trials in the United States for any<br /> new devices Microbot intends to market in the United States in the<br /> future. Moreover, the timing of the commencement, continuation and<br /> completion of any future clinical trial may be subject to<br /> significant delays attributable to various causes, including<br /> scheduling conflicts with participating clinicians and clinical<br /> institutions, difficulties in identifying and enrolling patients<br /> who meet trial eligibility criteria, failure of patients to<br /> complete the clinical trial, delay in or failure to obtain IRB<br /> approval to conduct a clinical trial at a prospective site, and<br /> shortages of supply in the investigational device.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Thus,<br /> the addition of one or more mandatory clinical trials to the<br /> development timeline for the SCS, LIBERTY or any other product<br /> candidate would significantly increase the costs associated with<br /> developing and commercializing the product and delay the timing of<br /> U.S. regulatory authorization. The current uncertainty regarding<br /> near-term medical device regulatory changes by the FDA could<br /> further affect our development plans for the SCS, LIBERTY or any<br /> other product candidate, depending on their nature, scope and<br /> applicability. Microbot and its business, financial condition and<br /> operating results could be materially and adversely affected as a<br /> result of any such costs, delays or uncertainty.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> The FDA may disagree with Microbot’s determination that the SCS is<br /> a Class II device or that the chosen predicate device (or any<br /> predicate device) is appropriate for a substantial equivalence<br /> comparison to the SCS.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although<br /> the Company intended to submit a 501(k) application for the SCS,<br /> the Company is now considering that the FDA may determine that the<br /> SCS is a Class III device because there is no appropriate predicate<br /> device for substantial equivalence comparison, which would require<br /> Microbot to submit a De Novo classification request or an<br /> application for premarket approval (“PMA”). Both De Novo requests<br /> and PMA applications require applicants to prepare information and<br /> data about device safety and efficacy in addition to the 510(k)<br /> requirements, including a benefit-risk analysis, a discussion of<br /> proposed general and special controls to eliminate or mitigate<br /> device risks, and additional testing data. PMA applications almost<br /> always require data from human clinical studies, and while De Novo<br /> requests do not require human clinical study data, in most cases,<br /> such data is necessary to demonstrate that the FDA can<br /> appropriately classify the device as Class II.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 25; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any<br /> type of clinical study performed in humans (including the EFS) will<br /> require the investment of substantial expense, professional<br /> resources and time. In order to conduct a clinical investigation<br /> involving human subjects for the purpose of demonstrating the<br /> safety and effectiveness of a medical device, a company must, among<br /> other things, apply for and obtain Institutional Review Board, or<br /> IRB, approval of the proposed investigation. In addition, if the<br /> clinical study involves a “significant risk” (as defined by the<br /> FDA) to human health, the sponsor of the investigation must also<br /> submit and obtain FDA approval of an Investigational Device<br /> Exemption, or IDE, application. Microbot may not be able to obtain<br /> FDA and/or IRB approval to undertake clinical trials in the United<br /> States for any new devices Microbot intends to market in the United<br /> States in the future. Moreover, the timing of the commencement,<br /> continuation and completion of any future clinical trial may be<br /> subject to significant delays attributable to various causes,<br /> including scheduling conflicts with participating clinicians and<br /> clinical institutions, difficulties in identifying and enrolling<br /> patients who meet trial eligibility criteria, failure of patients<br /> to complete the clinical trial, delay in or failure to obtain IRB<br /> approval to conduct a clinical trial at a prospective site, and<br /> shortages of supply in the investigational device. Thus, the<br /> addition of one or more mandatory clinical trials to the<br /> development timeline for the SCS would significantly increase the<br /> costs associated with developing and commercializing the product<br /> and delay the timing of U.S. regulatory authorization.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,<br /> if Microbot is required to submit a De Novo request or PMA<br /> application instead of a 510(k), the FDA review process may take<br /> significantly more time. While the FDA commits to reviewing 510(k)s<br /> in 90 days, the review period for De Novo requests and PMA<br /> applications is 150 days and 180 days, respectively. After an<br /> initial review of our De Novo request or PMA application, the FDA<br /> may request additional information or data which can significantly<br /> delay an ultimate decision on our submission.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Thus,<br /> submitting a De Novo request or PMA application for the SCS would<br /> significantly increase the costs associated with developing and<br /> commercializing the product and delay the timing of U.S. regulatory<br /> authorization. Microbot and its business, financial condition and<br /> operating results could be materially and adversely affected as a<br /> result of any such costs or delays.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot’s CardioSert technology is subject to a buy-back clause<br /> which, if triggered, could cause us to lose rights to the<br /> technology and delay or curtail the development of our<br /> products.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant<br /> to the Agreement we entered into in January 2018 to acquire the<br /> CardioSert technology, we are required to meet certain<br /> commercialization deadlines or CardioSert may terminate the<br /> agreement and buy back the technology for $1.00, subject to certain<br /> limited exceptions. The next such commercialization deadline is in<br /> 2022. At this time, we can give no assurance that we will meet the<br /> commercialization deadlines.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Failure<br /> to meet the applicable commercialization deadlines and any<br /> resulting sale back of the technology to CardioSert could<br /> materially adversely affect our ability to develop and<br /> commercialize, or materially delay the development and<br /> commercialization of, our planned LIBERTY device.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot has no prior experience in conducting clinical trials and<br /> will depend upon the ability of third parties, including contract<br /> research organizations, collaborative academic groups, future<br /> clinical trial sites and investigators, to conduct or to assist the<br /> Company in conducting clinical trials for its product candidates,<br /> if such trials become necessary.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As a<br /> development-stage, pre-clinical company, Microbot has no prior<br /> experience in designing, initiating, conducting and monitoring<br /> human clinical trials. Microbot will depend upon its ability and/or<br /> the ability of future collaborators, contract research<br /> organizations, clinical trial sites and investigators to<br /> successfully design, initiate, conduct and monitor such clinical<br /> trials.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Failure<br /> by Microbot or by any of these future collaborating parties to<br /> timely and effectively initiate, conduct and monitor a future<br /> clinical trial could significantly delay or materially impair<br /> Microbot’s ability to complete those clinical trials and/or obtain<br /> regulatory clearance or approval of its product candidates and,<br /> consequently, could delay or materially impair its ability to<br /> generate revenues from the commercialization of those<br /> products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> If the commercial opportunity for SCS, LIBERTY and any other<br /> commercial products that may be developed by Microbot is smaller<br /> than Microbot anticipates, Microbot’s future revenue from SCS,<br /> LIBERTY and such other products will be adversely affected and<br /> Microbot’s business will suffer.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> the size of the commercial opportunities in any of Microbot’s<br /> target markets is smaller than it anticipates, Microbot may not be<br /> able to achieve profitability and growth. For instance, Microbot is<br /> developing SCS as a device for the treatment of hydrocephalus and<br /> NPH. It is difficult to predict the penetration, future growth rate<br /> or size of the market for Microbot’s product candidate.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 26; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> commercial success of the SCS, LIBERTY or any other product<br /> candidates will require broad acceptance of the devices by the<br /> doctors and other medical professionals who specialize in the<br /> procedures targeted by each device, a limited number of whom may be<br /> able to influence device selection and purchasing decisions. If<br /> Microbot’s technologies are not broadly accepted and perceived as<br /> having significant advantages over existing medical devices, then<br /> it will not meet its business objectives. Such perceptions are<br /> likely to be based on a determination by medical facilities and<br /> physicians that Microbot’s product candidates are safe and<br /> effective, are cost-effective in comparison to existing devices,<br /> and represent acceptable methods of treatment. Microbot cannot<br /> assure that it will be able to establish the relationships and<br /> arrangements with medical facilities and physicians necessary to<br /> support the market uptake of its product candidates. In addition,<br /> its competitors may develop new technologies for the same markets<br /> Microbot is targeting that are more attractive to medical<br /> facilities and physicians. If doctors and other medical<br /> professionals do not consider Microbot product candidates to be<br /> suitable for application in the procedures we are targeting and an<br /> improvement over the use of existing or competing products,<br /> Microbot’s business goals will not be realized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Customers will be unlikely to buy the SCS, LIBERTY or any other<br /> product candidates unless Microbot can demonstrate that they can be<br /> produced for sale to consumers at attractive<br /> prices.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To<br /> date, Microbot has focused primarily on research and development of<br /> the first generation versions of the SCS, as well as initial<br /> development of the LIBERTY device. Consequently, Microbot has no<br /> experience in manufacturing its product candidates, and intends to<br /> manufacture its product candidates through third-party<br /> manufacturers. Microbot can offer no assurance that either it or<br /> its manufacturing partners will develop efficient, automated,<br /> low-cost manufacturing capabilities and processes to meet the<br /> quality, price, engineering, design and production standards or<br /> production volumes required to successfully mass produce its<br /> commercial products. Even if its manufacturing partners are<br /> successful in developing such manufacturing capability and quality<br /> processes, including the assurance of GMP-compliant device<br /> manufacturing, there can be no assurance that Microbot can timely<br /> meet its product commercialization schedule or the production and<br /> delivery requirements of potential customers. A failure to develop<br /> such manufacturing processes and capabilities could have a material<br /> adverse effect on Microbot’s business and financial<br /> results.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> proposed price of Microbot’s product candidates, once approved for<br /> sale, will be dependent on material and other manufacturing costs.<br /> Microbot cannot offer any assurances that its manufacturing partner<br /> will be able manufacture its product candidates at a competitive<br /> price or that achieving cost reductions will not cause a reduction<br /> in the performance, reliability and longevity of its product<br /> candidates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot will rely on third party design houses for the redesign of<br /> the CardioSert guidewire to other specific<br /> indications.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since<br /> the CardioSert Guidewire was originally designed for treating<br /> chronic total occlusions, the design will need to be modified to<br /> treat other indications. As we do not specialize in the design of<br /> guidewires and microcatheters, Microbot is currently working with<br /> two leading third party design houses that specialize in this type<br /> of design. Such designs may require several design and regulatory<br /> iterations prolonging the product release and certification, which<br /> could delay the commercialization of our planned LIBERTY<br /> device.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot has relied on, and intends to continue to rely on,<br /> third-party manufacturers to produce its product<br /> candidates.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> currently relies, and expects to rely for the foreseeable future,<br /> on third-party manufacturers to produce and supply its product<br /> candidates, and it expects to rely on third parties to manufacture<br /> the commercialized products as well, should they receive the<br /> necessary regulatory clearance or approval. Reliance on third-party<br /> manufacturers entails risks to which Microbot would not be subject<br /> if Microbot manufactured its product candidates or future<br /> commercial products itself, including:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">limitations<br /> on supply availability resulting from capacity, internal<br /> operational problems or scheduling constraints of third<br /> parties;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential<br /> regulatory non-compliance or other violations by the third-party<br /> manufacturer that could result in quality assurance;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> possible breach of manufacturing agreements by third parties<br /> because of various factors beyond Microbot’s control;<br /> and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> possible termination or non-renewal of manufacturing agreements by<br /> third parties for various reasons beyond Microbot’s control, at a<br /> time that is costly or inconvenient to Microbot.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> Microbot is not able to maintain its key manufacturing<br /> relationships, Microbot may fail to find replacement manufacturers<br /> or develop its own manufacturing capabilities, which could delay or<br /> impair Microbot’s ability to obtain regulatory clearance or<br /> approval for its product candidates and could substantially<br /> increase its costs or deplete profit margins, if any. If Microbot<br /> does find replacement manufacturers, Microbot may not be able to<br /> enter into agreements with them on terms and conditions favorable<br /> to it and there could be a substantial delay before new facilities<br /> could be qualified and registered with the FDA and other foreign<br /> regulatory authorities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 27; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,<br /> the existing design of the CardioSert device was produced in very<br /> low quantities by the seller of the technology. Accordingly, the<br /> scaling-up to high volume production may require significant<br /> changes to the existing design and production methods. These<br /> changes are currently being carried out by two leading third party<br /> companies that specialize in design and high volume production of<br /> guidewires and microcatheters. These design changes/modifications<br /> may have significant negative implications in price and time to<br /> market of the CardioSert system.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> If Microbot’s product candidates are not considered to be a safe<br /> and effective alternative to existing technologies, Microbot will<br /> not be commercially successful.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> SCS, LIBERTY and TipCAT rely on new technologies, and Microbot’s<br /> success will depend on acceptance of these technologies by the<br /> medical community as safe, clinically effective, cost effective and<br /> a preferred device as compared to products of its competitors.<br /> Microbot does not have long-term data regarding efficacy, safety<br /> and clinical outcomes associated with the use of SCS, LIBERTY or<br /> TipCAT. Any data that is generated in the future may not be<br /> positive or may not support the product candidates’ regulatory<br /> dossiers, which would negatively affect market acceptance and the<br /> rate at which its product candidates are adopted. Equally important<br /> will be physicians’ perceptions of the safety of Microbot’s product<br /> candidates because Microbot’s technologies are relatively new. If,<br /> over the long term, Microbot’s product candidates do not meet<br /> surgeons’ expectations as to safety, efficacy and ease of use, they<br /> may not become widely adopted.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Market<br /> acceptance of Microbot’s product candidates will also be affected<br /> by other factors, including Microbot’s ability to convince key<br /> opinion leaders to provide recommendations regarding its product<br /> candidates; convince distributors that its technologies are<br /> attractive alternatives to existing and competing technologies;<br /> supply and service sufficient quantities of products directly or<br /> through marketing alliances; and price products competitively in<br /> light of the current macroeconomic environment, which is becoming<br /> increasingly price sensitive.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot may be subject to penalties and may be precluded from<br /> marketing its product candidates if Microbot fails to comply with<br /> extensive governmental regulations.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> believes that its medical device product candidates will be<br /> categorized as Class II devices, which typically require a 510(k)<br /> or 510(k) de-novo premarket submission to the FDA. However, the FDA<br /> has not made any determination about whether Microbot’s medical<br /> product candidates are Class II medical devices and may disagree<br /> with that classification. If the FDA determines that Microbot’s<br /> product candidates should be reclassified as Class III medical<br /> devices, Microbot could be precluded from marketing the devices for<br /> clinical use within the United States for months, years or longer,<br /> depending on the specifics of the change in classification.<br /> Reclassification of any of Microbot’s product candidates as Class<br /> III medical devices could significantly increase Microbot’s<br /> regulatory costs, including the timing and expense associated with<br /> required clinical trials and other costs.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> FDA and non-U.S. regulatory authorities require that Microbot<br /> product candidates be manufactured according to rigorous standards.<br /> These regulatory requirements significantly increase Microbot’s<br /> production costs, which may prevent Microbot from offering products<br /> within the price range and in quantities necessary to meet market<br /> demands. If Microbot or one of its third-party manufacturers<br /> changes an approved manufacturing process, the FDA may need to<br /> review the process before it may be used. Failure to comply with<br /> applicable pre-market and post-market regulatory requirements could<br /> subject Microbot to enforcement actions, including warning letters,<br /> fines, injunctions and civil penalties, recall or seizure of its<br /> products, operating restrictions, partial suspension or total<br /> shutdown of its production, and criminal prosecution.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> If Microbot is not able to both obtain and maintain adequate levels<br /> of third-party reimbursement for procedures involving its product<br /> candidates after they are approved for marketing and launched<br /> commercially, it would have a material adverse effect on Microbot’s<br /> business.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Healthcare<br /> providers and related facilities are generally reimbursed for their<br /> services through payment systems managed by various governmental<br /> agencies worldwide, private insurance companies, and managed care<br /> organizations. The manner and level of reimbursement in any given<br /> case may depend on the site of care, the procedure(s) performed,<br /> the final patient diagnosis, the device(s) utilized, available<br /> budget, or a combination of these factors, and coverage and payment<br /> levels are determined at each payor’s discretion. The coverage<br /> policies and reimbursement levels of these third-party payors may<br /> impact the decisions of healthcare providers and facilities<br /> regarding which medical products they purchase and the prices they<br /> are willing to pay for those products. Microbot cannot assure you<br /> that its sales will not be impeded and its business harmed if<br /> third-party payors fail to provide reimbursement for Microbot<br /> products that healthcare providers view as adequate.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> the United States, Microbot expects that its product candidates,<br /> once approved, will be purchased primarily by medical institutions,<br /> which then bill various third-party payors, such as the Centers for<br /> Medicare & Medicaid Services, or CMS, which administers the<br /> Medicare program through Medicare Administrative Contractors, and<br /> other government health care programs and private insurance plans,<br /> for the healthcare products and services provided to their<br /> patients. The process involved in applying for coverage and<br /> incremental reimbursement from CMS is lengthy and expensive.<br /> Moreover, many private payors look to CMS in setting their<br /> reimbursement policies and amounts. If CMS or other agencies limit<br /> coverage for procedures utilizing Microbot’s products or decrease<br /> or limit reimbursement payments for doctors and hospitals utilizing<br /> Microbot’s products, this may affect coverage and reimbursement<br /> determinations by many private payors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 28; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If a<br /> procedure involving a medical device is not reimbursed separately<br /> by a government or private insurer, then a medical institution<br /> would have to absorb the cost of Microbot’s products as part of the<br /> cost of the procedure in which the products are used. At this time,<br /> Microbot does not know the extent to which medical institutions<br /> would consider insurers’ payment levels adequate to cover the cost<br /> of its products. Failure by hospitals and surgeons to receive an<br /> amount that they consider to be adequate reimbursement for<br /> procedures in which Microbot products are used could deter them<br /> from purchasing Microbot products and limit sales growth for those<br /> products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has no control over payor decision-making with respect to coverage<br /> and payment levels for its medical device product candidates, once<br /> they are approved. Additionally, Microbot expects many payors to<br /> continue to explore cost-containment strategies (e.g., comparative<br /> and cost-effectiveness analyses, so-called “pay-for-performance”<br /> programs implemented by various public government health care<br /> programs and private third-party payors, and expansion of payment<br /> bundling initiatives, and other such methods that shift medical<br /> cost risk to providers) that may potentially impact coverage and/or<br /> payment levels for Microbot’s current product candidates or<br /> products Microbot develops in the future.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As<br /> Microbot’s product offerings are used across diverse healthcare<br /> settings, they will be affected to varying degrees by the different<br /> payment systems.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Clinical outcome studies for the SCS and LIBERTY may not provide<br /> sufficient data to make such product candidates the standard of<br /> care.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> business plan with respect to the SCS and LIBERTY relies on the<br /> broad adoption by surgeons of the products for their respective<br /> planned applications. For instance, although Microbot believes the<br /> occurrence of shunt occlusion complications is well known among<br /> physicians practicing in the relevant medical fields, SCS may be<br /> adopted for replacement shunt surgeries only. Neurosurgeons may<br /> adopt SCS for primary shunt placement procedures only upon<br /> additional clinical studies with longer follow up periods, if at<br /> all. It may also be necessary to provide outcome studies on the<br /> preventative capabilities of the SCS in order to convince the<br /> medical community of its safety and efficacy.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clinical<br /> studies may not show an advantage in SCS or LIBERTY based<br /> procedures in a timely manner, or at all, and outcome studies have<br /> not been designed at this time, and may be too large and too costly<br /> for Microbot to conduct. Both situations could prevent broad<br /> adoption of the SCS and LIBERTY and materially impact Microbot’s<br /> business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot products may in the future be subject to mandatory product<br /> recalls that could harm its reputation, business and financial<br /> results.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> FDA and similar foreign governmental authorities have the authority<br /> to require the recall of commercialized products in the event of<br /> material deficiencies or defects in design or manufacture that<br /> could pose a risk of injury to patients. In the case of the FDA,<br /> the authority to require a recall must be based on an FDA finding<br /> that there is a reasonable probability that the device would cause<br /> serious injury or death, although in most cases this mandatory<br /> recall authority is not used because manufacturers typically<br /> initiate a voluntary recall when a device violation is discovered.<br /> In addition, foreign governmental bodies have the authority to<br /> require the recall of Microbot products in the event of material<br /> deficiencies or defects in design or manufacture. Manufacturers<br /> may, under their own initiative, recall a product if any material<br /> deficiency in a device is found. A government-mandated or voluntary<br /> recall by Microbot or one of its distributors could occur as a<br /> result of component failures, manufacturing errors, design or<br /> labeling defects or other deficiencies and issues. Recalls of any<br /> Microbot products would divert managerial and financial resources<br /> and have an adverse effect on Microbot’s financial condition and<br /> results of operations, and any future recall announcements could<br /> harm Microbot’s reputation with customers and negatively affect its<br /> sales. In addition, the FDA could take enforcement action,<br /> including any of the following sanctions for failing to timely<br /> report a recall to the FDA:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">untitled<br /> letters, warning letters, fines, injunctions, consent decrees and<br /> civil penalties;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">detention<br /> or seizure of Microbot products;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">operating<br /> restrictions or partial suspension or total shutdown of<br /> production;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">refusing<br /> or delaying requests for 510(k) clearance or premarket approval of<br /> new products or modified products;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">withdrawing<br /> 510(k) clearances or other types of regulatory authorizations -that<br /> have already been granted;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">refusing<br /> to grant export approval for Microbot products; or</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">criminal<br /> prosecution.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 29; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> If Microbot’s future commercialized products cause or contribute to<br /> a death or a serious injury, Microbot will be subject to Medical<br /> Device Reporting regulations, which can result in voluntary<br /> corrective actions or agency enforcement<br /> actions.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under<br /> FDA regulations, Microbot will be required to report to the FDA any<br /> incident in which a marketed medical device product may have caused<br /> or contributed to a death or serious injury or in which a medical<br /> device malfunctioned and, if the malfunction were to recur, would<br /> likely cause or contribute to death or serious injury. In addition,<br /> all manufacturers placing medical devices in European Union markets<br /> are legally bound to report any serious or potentially serious<br /> incidents involving devices they produce or sell to the relevant<br /> authority in whose jurisdiction the incident occurred.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> anticipates that in the future it is likely that we may experience<br /> events that would require reporting to the FDA pursuant to the<br /> Medical Device Reporting (MDR) regulations. Any adverse event<br /> involving a Microbot product could result in future voluntary<br /> corrective actions, such as product actions or customer<br /> notifications, or agency actions, such as inspection, mandatory<br /> recall or other enforcement action. Any corrective action, whether<br /> voluntary or involuntary, as well as defending Microbot in a<br /> lawsuit, will require the dedication of our time and capital,<br /> distract management from operating our business, and may harm our<br /> reputation and financial results.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot could be exposed to significant liability claims if<br /> Microbot is unable to obtain insurance at acceptable costs and<br /> adequate levels or otherwise protect itself against potential<br /> product liability claims.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> testing, manufacture, marketing and sale of medical devices entail<br /> the inherent risk of liability claims or product recalls. Product<br /> liability insurance is expensive and may not be available on<br /> acceptable terms, if at all. A successful product liability claim<br /> or product recall could inhibit or prevent the successful<br /> commercialization of Microbot’s products, cause a significant<br /> financial burden on Microbot, or both, which in any case could have<br /> a material adverse effect on Microbot’s business and financial<br /> condition.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> The results of Microbot’s research and development efforts are<br /> uncertain and there can be no assurance of the commercial success<br /> of Microbot’s product candidates.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> believe that its success will depend in part on its ability to<br /> expand its product offerings and continue to improve its existing<br /> product candidates in response to changing technologies, customer<br /> demands and competitive pressures. As such, Microbot expects to<br /> continue dedicating significant resources in research and<br /> development. The product candidates and services being developed by<br /> Microbot may not be technologically successful. In addition, the<br /> length of Microbot’s product candidates and service development<br /> cycle may be greater than Microbot originally expected.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> If Microbot fails to retain certain of its key personnel and<br /> attract and retain additional qualified personnel, Microbot might<br /> not be able to pursue its growth strategy<br /> effectively.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> is dependent on its senior management, in particular Harel Gadot,<br /> Microbot’s Chairman, President and Chief Executive Officer.<br /> Although Microbot believes that its relationship with members of<br /> its senior management is positive, there can be no assurance that<br /> the services of any of these individuals will continue to be<br /> available to Microbot in the future. Microbot’s future success will<br /> depend in part on its ability to retain its management and<br /> scientific teams, to identify, hire and retain additional qualified<br /> personnel with expertise in research and development and sales and<br /> marketing, and to effectively provide for the succession of senior<br /> management, when necessary. Competition for qualified personnel in<br /> the medical device industry is intense and finding and retaining<br /> qualified personnel with experience in the industry is very<br /> difficult. Microbot believes that there are only a limited number<br /> of individuals with the requisite skills to serve in key positions<br /> at Microbot, particularly in Israel, and it competes for key<br /> personnel with other medical equipment and technology companies, as<br /> well as research institutions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> does not carry, and does not intend to carry, any key man life<br /> insurance policies on any of its existing executive<br /> officers.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to International Business</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> If Microbot fails to obtain regulatory clearances in other<br /> countries for its product candidates under development, Microbot<br /> will not be able to commercialize these product candidates in those<br /> countries.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> order for Microbot to market its product candidates in countries<br /> other than the United States, it must comply with the safety and<br /> quality regulations in such countries.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 30; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> Europe, these regulations, including the requirements for<br /> approvals, clearance or grant of Conformité Européenne, or CE,<br /> Certificates of Conformity and the time required for regulatory<br /> review, vary from country to country. Failure to obtain regulatory<br /> approval, clearance or CE Certificates of Conformity (or<br /> equivalent) in any foreign country in which Microbot plans to<br /> market its product candidates may harm its ability to generate<br /> revenue and harm its business. Approval and CE marking procedures<br /> vary among countries and can involve additional product testing and<br /> additional administrative review periods. The time required to<br /> obtain approval or CE Certificate of Conformity in other countries<br /> might differ from that required to obtain FDA clearance. The<br /> regulatory approval or CE marking process in other countries may<br /> include all of the risks detailed above regarding FDA clearance in<br /> the United States. Regulatory approval or the CE marking of a<br /> product candidate in one country does not ensure regulatory<br /> approval in another, but a failure or delay in obtaining regulatory<br /> approval or a CE Certificate of Conformity in one country may<br /> negatively impact the regulatory process in others. Failure to<br /> obtain regulatory approval or a CE Certificate of Conformity in<br /> other countries or any delay or setback in obtaining such approval<br /> could have the same adverse effects described above regarding FDA<br /> clearance in the United States.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> cannot be certain that it will be successful in complying with the<br /> requirements of the CE Certificate of Conformity and receiving a CE<br /> Mark for its product candidates or in continuing to meet the<br /> requirements of the Medical Devices Directive in the European<br /> Economic Area (EEA).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israel’s<br /> Medical Devices Law generally requires the registration of all<br /> medical products with the Ministry of Health, or MOH, Registrar<br /> through the submission of an application to the Ministry of Health<br /> Medical Institutions and Devices Licensing Department, or AMAR. If<br /> the application includes a certificate issued by a competent<br /> authority of a “recognized” country, which includes Australia,<br /> Canada, the European Community Member States, Japan or the United<br /> States, the registration process is expedited, but is generally<br /> still expected to take 6 to 9 months for approval. If certification<br /> from a recognized country is not available, the registration<br /> process takes significantly longer and a license is rarely issued<br /> under such circumstances, as the MOH may require the presentation<br /> of significant additional clinical data. Once granted, a license<br /> (marketing authorization) for a medical device is valid for five<br /> years from the date of registration of the device, except for<br /> implants with a life-supporting function, for which the validity is<br /> for only two years from the date of registration. Furthermore, the<br /> holder of the license must meet several additional requirements to<br /> maintain the license. Microbot cannot be certain that it will be<br /> successful in applying for a license from the MOH for its product<br /> candidates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to Microbot’s Intellectual Property</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot’s right to develop and commercialize the SCS and TipCAT<br /> product candidates are subject to the terms and condition of a<br /> license granted to Microbot by Technion Research and Development<br /> Foundation Ltd. and termination of the license with respect to one<br /> or both of the technology platforms underlying the product<br /> candidates would result in Microbot ceasing its development efforts<br /> for the applicable product candidate(s).</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> entered into a license agreement with Technion Research and<br /> Development Foundation Ltd., or TRDF, in 2012 pursuant to which<br /> Microbot obtained an exclusive, worldwide, royalty-bearing,<br /> sub-licensable license to certain patents and inventions relating<br /> to the SCS and TipCAT technology platforms. Pursuant to the terms<br /> of the license agreement, in order to maintain the license with<br /> respect to each platform, Microbot must use commercially reasonable<br /> efforts to develop products covered by the license, including<br /> meeting certain agreed upon development milestones. TRDF has the<br /> option to terminate a license granted with respect a particular<br /> technology in the event Microbot fails to meet a development<br /> milestone associated with such technology. Therefore, the failure<br /> to meet development milestones may lead to a complete termination<br /> of the applicable license agreement and result in Microbot ceasing<br /> its development efforts for the applicable product candidate. The<br /> milestones for both SCS and TipCAT include commencing first in<br /> human clinical trials by December 2021. Failure to meet any<br /> development milestone will give TRDF the right to terminate the<br /> license with respect to the technology underlying the missed<br /> milestone. TRDF has previously demonstrated flexibility with<br /> respect to amending the terms of the license to extend the<br /> milestone dates, although we can give no assurance at this time<br /> that TRDF will continue to be so flexible with respect to amending<br /> the terms of the license.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under<br /> the license agreement, Microbot is also subject to various other<br /> obligations, including obligations with respect to payment upon the<br /> achievement of certain milestones and royalties on product sales.<br /> TRDF may terminate the license agreement under certain<br /> circumstances, including material breaches by Microbot or under<br /> certain bankruptcy or insolvency events. In the case of termination<br /> of the license by Microbot without cause or by TRDF for cause, TRDF<br /> has the right to receive a non-exclusive license from Microbot with<br /> respect to improvements to the licensed technologies made by<br /> Microbot.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> TRDF were to terminate the license agreement or if Microbot was to<br /> otherwise lose the ability to exploit the licensed patents,<br /> Microbot’s competitive advantage could be reduced or terminated,<br /> and Microbot will likely not be able to find a source to replace<br /> the licensed technology.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,<br /> if there is any future dispute between Microbot and TRDF regarding<br /> the respective parties’ rights under the license agreement,<br /> Microbot’s ability to develop and commercialize the SCS and TipCAT<br /> may be materially harmed.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 31; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot may not meet its product candidates’ development and<br /> commercialization objectives in a timely manner or at<br /> all.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has established internal goals, based upon expectations with<br /> respect to its technologies, which Microbot has used to assess its<br /> progress toward developing its product candidates. These goals<br /> relate to technology and design improvements as well as to dates<br /> for achieving specific development results. If the product<br /> candidates exhibit technical defects or are unable to meet cost or<br /> performance goals, Microbot’s commercialization schedule could be<br /> delayed and potential purchasers of its initial commercialized<br /> products may decline to purchase such products or may opt to pursue<br /> alternative products, which would materially harm its<br /> business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Intellectual property litigation and infringement claims could<br /> cause Microbot to incur significant expenses or prevent Microbot<br /> from selling certain of its product candidates.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> medical device industry is characterized by extensive intellectual<br /> property litigation. From time to time, Microbot might be the<br /> subject of claims by third parties of potential infringement or<br /> misappropriation. Regardless of outcome, such claims are expensive<br /> to defend and divert the time and effort of Microbot’s management<br /> and operating personnel from other business issues. A successful<br /> claim or claims of patent or other intellectual property<br /> infringement against Microbot could result in its payment of<br /> significant monetary damages and/or royalty payments or negatively<br /> impact its ability to sell current or future products in the<br /> affected category and could have a material adverse effect on its<br /> business, cash flows, financial condition or results of<br /> operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> If Microbot or TRDF are unable to protect the patents or other<br /> proprietary rights relating to Microbot’s product candidates, or if<br /> Microbot infringes on the patents or other proprietary rights of<br /> others, Microbot’s competitiveness and business prospects may be<br /> materially damaged.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> success depends on its ability to protect its intellectual property<br /> (including its licensed intellectual property) and its proprietary<br /> technologies. Microbot’s commercial success depends in part on its<br /> ability to obtain and maintain patent protection and trade secret<br /> protection for its product candidates, proprietary technologies,<br /> and their uses, as well as its ability to operate without<br /> infringing upon the proprietary rights of others.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> currently holds, through licenses or otherwise, an intellectual<br /> property portfolio that includes U.S. and international patents and<br /> pending patents, and other patents under development. Microbot<br /> intends to continue to seek legal protection, primarily through<br /> patents, including the TRDF licensed patents, for its proprietary<br /> technology. Seeking patent protection is a lengthy and costly<br /> process, and there can be no assurance that patents will be issued<br /> from any pending applications, or that any claims allowed from<br /> existing or pending patents will be sufficiently broad or strong to<br /> protect its proprietary technology. There is also no guarantee that<br /> any patents Microbot holds, through licenses or otherwise, will not<br /> be challenged, invalidated or circumvented, or that the patent<br /> rights granted will provide competitive advantages to Microbot.<br /> Microbot’s competitors have developed and may continue to develop<br /> and obtain patents for technologies that are similar or superior to<br /> Microbot’s technologies. In addition, the laws of foreign<br /> jurisdictions in which Microbot develops, manufactures or sells its<br /> product candidates may not protect Microbot’s intellectual property<br /> rights to the same extent as do the laws of the United<br /> States.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adverse<br /> outcomes in current or future legal disputes regarding patent and<br /> other intellectual property rights could result in the loss of<br /> Microbot’s intellectual property rights, subject Microbot to<br /> significant liabilities to third parties, require Microbot to seek<br /> licenses from third parties on terms that may not be reasonable or<br /> favorable to Microbot, prevent Microbot from manufacturing,<br /> importing or selling its product candidates, or compel Microbot to<br /> redesign its product candidates to avoid infringing third parties’<br /> intellectual property. As a result, Microbot may be required to<br /> incur substantial costs to prosecute, enforce or defend its<br /> intellectual property rights if they are challenged. Any of these<br /> circumstances could have a material adverse effect on Microbot’s<br /> business, financial condition and resources or results of<br /> operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has the first right, but not the obligation, to control the<br /> prosecution, maintenance or enforcement of the licensed patents<br /> from TRDF. However, there may be situations in which Microbot will<br /> not have control over the prosecution, maintenance or enforcement<br /> of the patents that Microbot licenses, or may not have sufficient<br /> ability to consult and input into the patent prosecution and<br /> maintenance process with respect to such patents. If Microbot does<br /> not control the patent prosecution and maintenance process with<br /> respect to the TRDF licensed patents, TRDF may elect to do so but<br /> may fail to take the steps that are necessary or desirable in order<br /> to obtain, maintain and enforce the licensed patents.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> ability to develop intellectual property depends in large part on<br /> hiring, retaining and motivating highly qualified design and<br /> engineering staff and consultants with the knowledge and technical<br /> competence to advance its technology and productivity goals. To<br /> protect Microbot’s trade secrets and proprietary information,<br /> Microbot has entered into confidentiality agreements with its<br /> employees, as well as with consultants and other parties. If these<br /> agreements prove inadequate or are breached, Microbot’s remedies<br /> may not be sufficient to cover its losses.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 32; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Dependence on patent and other proprietary rights and failing to<br /> protect such rights or to be successful in litigation related to<br /> such rights may result in Microbot’s payment of significant<br /> monetary damages or impact offerings in its product<br /> portfolios.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> long-term success largely depends on its ability to market<br /> technologically competitive product candidates. If Microbot fails<br /> to obtain or maintain adequate intellectual property protection, it<br /> may not be able to prevent third parties from using its proprietary<br /> technologies or may lose access to technologies critical to our<br /> product candidates. Also, Microbot currently pending or future<br /> patent applications may not result in issued patents, and issued<br /> patents are subject to claims concerning priority, scope and other<br /> issues.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,<br /> Microbot has not filed applications for all of our patents<br /> internationally and it may not be able to prevent third parties<br /> from using its proprietary technologies or may lose access to<br /> technologies critical to its product candidates in other<br /> countries.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to Operations in Israel</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot has facilities located in Israel, and therefore, political<br /> conditions in Israel may affect Microbot’s operations and<br /> results.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has facilities located in Israel. In addition, one of its seven<br /> directors, its Chief Technology Officer, Chief Medical Officer and<br /> its Chief Financial Officer, as well as substantially all of its<br /> research and development team and non-management employees, are<br /> residents of Israel. Accordingly, political, economic and military<br /> conditions in Israel will directly or indirectly affect Microbot’s<br /> operations and results. Since the establishment of the State of<br /> Israel, a number of armed conflicts have taken place between Israel<br /> and its Arab neighbors. An ongoing state of hostility, varying in<br /> degree and intensity has led to security and economic problems for<br /> Israel. For a number of years there have been continuing<br /> hostilities between Israel and the Palestinians. This includes<br /> hostilities with the Islamic movement Hamas in the Gaza Strip,<br /> which have adversely affected the peace process and at times<br /> resulted in armed conflicts. Such hostilities have negatively<br /> influenced Israel’s economy as well as impaired Israel’s<br /> relationships with several other countries. Israel also faces<br /> threats from Hezbollah militants in Lebanon, from ISIS and rebel<br /> forces in Syria, from the government of Iran and other potential<br /> threats from additional countries in the region. Moreover, some of<br /> Israel’s neighboring countries have recently undergone or are<br /> undergoing significant political changes. These political, economic<br /> and military conditions in Israel could have a material adverse<br /> effect on Microbot’s business, financial condition, results of<br /> operations and future growth.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Political relations could limit Microbot’s ability to sell or buy<br /> internationally.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> could be adversely affected by the interruption or reduction of<br /> trade between Israel and its trading partners. Some countries,<br /> companies and organizations continue to participate in a boycott of<br /> Israeli firms and others doing business with Israel, with Israeli<br /> companies or with Israeli-owned companies operating in other<br /> countries. Foreign government defense export policies towards<br /> Israel could also make it more difficult for us to obtain the<br /> export authorizations necessary for Microbot’s activities. Also,<br /> over the past several years there have been calls in the United<br /> States, Europe and elsewhere to reduce trade with Israel. There can<br /> be no assurance that restrictive laws, policies or practices<br /> directed towards Israel or Israeli businesses will not have an<br /> adverse impact on Microbot’s business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Israel’s economy may become unstable.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">From<br /> time to time, Israel’s economy may experience inflation or<br /> deflation, low foreign exchange reserves, fluctuations in world<br /> commodity prices, military conflicts and civil unrest. For these<br /> and other reasons, the government of Israel has intervened in the<br /> economy employing fiscal and monetary policies, import duties,<br /> foreign currency restrictions, controls of wages, prices and<br /> foreign currency exchange rates and regulations regarding the<br /> lending limits of Israeli banks to companies considered to be in an<br /> affiliated group. The Israeli government has periodically changed<br /> its policies in these areas. Reoccurrence of previous destabilizing<br /> factors could make it more difficult for Microbot to operate its<br /> business and could adversely affect its business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Exchange rate fluctuations between the U.S. dollar and the NIS<br /> currencies may negatively affect Microbot’s operating<br /> costs.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A<br /> significant portion of Microbot’s expenses are paid in New Israeli<br /> Shekels, or NIS, but its financial statements are denominated in<br /> U.S. dollars. As a result, Microbot is exposed to the risks that<br /> the NIS may appreciate relative to the U.S. dollar, or the NIS<br /> instead devalues relative to the U.S. dollar, and the inflation<br /> rate in Israel may exceed such rate of devaluation of the NIS, or<br /> that the timing of such devaluation may lag behind inflation in<br /> Israel. In any such event, the U.S. dollar cost of Microbot’s<br /> operations in Israel would increase and Microbot’s U.S.<br /> dollar-denominated results of operations would be adversely<br /> affected. Microbot cannot predict any future trends in the rate of<br /> inflation in Israel or the rate of devaluation (if any) of the NIS<br /> against the U.S. dollar.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 33; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> primary expenses paid in NIS that are not linked to the U.S. dollar<br /> are employee expenses in Israel and lease payments on its Israeli<br /> facility. If Microbot is unsuccessful in hedging against its<br /> position in NIS, a change in the value of the NIS compared to the<br /> U.S. dollar could increase Microbot’s research and development<br /> expenses, labor costs and general and administrative expenses, and<br /> as a result, have a negative impact on Microbot’s<br /> profits.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Funding and other benefits provided by Israeli government programs<br /> may be terminated or reduced in the future and the terms of such<br /> funding may have a significant impact on future corporate<br /> decisions.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> participates in programs under the auspices of the Israeli<br /> Innovation Authority, for which it receives funding for the<br /> development of its technologies and product candidates. If Microbot<br /> fails to comply with the conditions applicable to this program, it<br /> may be required to pay additional penalties or make refunds and may<br /> be denied future benefits. From time to time, the government of<br /> Israel has discussed reducing or eliminating the benefits available<br /> under this program, and therefore these benefits may not be<br /> available in the future at their current levels or at<br /> all.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> research and development efforts from inception until now have been<br /> financed in part through such Israeli Innovation Authority royalty<br /> bearing grants in an aggregate amount of approximately $1,500,000<br /> through December 31, 2021. With respect to such grants Microbot is<br /> committed to pay royalties at a rate of between 3% to 3.5% on sales<br /> proceeds up to the total amount of grants received, linked to the<br /> dollar, plus interest at an annual rate of USD LIBOR. In addition,<br /> as a recipient of Israeli Innovation Authority grants, Microbot<br /> must comply with the requirements of the Israeli Encouragement of<br /> Industrial Research and Development Law, 1984, or the R&D Law,<br /> and related regulations. Under the terms of the grants and the<br /> R&D Law, Microbot is restricted from transferring any<br /> technologies, know-how, manufacturing or manufacturing rights<br /> developed using Israeli Innovation Authority grants outside of<br /> Israel without the prior approval of Israeli Innovation Authority.<br /> Therefore, if aspects of its technologies are deemed to have been<br /> developed with Israeli Innovation Authority funding, the<br /> discretionary approval of an Israeli Innovation Authority committee<br /> would be required for any transfer to third parties outside of<br /> Israel of the technologies, know-how, manufacturing or<br /> manufacturing rights related to such aspects. Furthermore, the<br /> Israeli Innovation Authority may impose certain conditions on any<br /> arrangement under which it permits Microbot to transfer technology<br /> or development outside of Israel or may not grant such approvals at<br /> all.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> approved, the transfer of Israeli Innovation Authority-supported<br /> technology or know-how outside of Israel may involve the payment of<br /> significant fees, which will depend on the value of the transferred<br /> technology or know-how, the total amount Israeli Innovation<br /> Authority funding received by Microbot, the number of years since<br /> the funding and other factors. These restrictions and requirements<br /> for payment may impair Microbot’s ability to sell its technology<br /> assets outside of Israel or to outsource or transfer development or<br /> manufacturing activities with respect to any product or technology<br /> outside of Israel. Furthermore, the amount of consideration<br /> available to Microbot’s shareholders in a transaction involving the<br /> transfer of technology or know-how developed with Israeli<br /> Innovation Authority funding outside of Israel (such as through a<br /> merger or other similar transaction) may be reduced by any amounts<br /> that Microbot is required to pay to the Israeli Innovation<br /> Authority.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Some of Microbot’s employees and officers are obligated to perform<br /> military reserve duty in Israel.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Generally,<br /> Israeli adult male citizens and permanent residents are obligated<br /> to perform annual military reserve duty up to a specified age. They<br /> also may be called to active duty at any time under emergency<br /> circumstances, which could have a disruptive impact on Microbot’s<br /> workforce.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> It may be difficult to enforce a non-Israeli judgment against<br /> Microbot or its officers and directors.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> operating subsidiary of the Company is incorporated in Israel. Some<br /> of Microbot’s executive officers and directors are not residents of<br /> the United States, and a substantial portion of Microbot’s assets<br /> and the assets of its executive officers and directors are located<br /> outside the United States. Therefore, a judgment obtained against<br /> Microbot, or any of these persons, including a judgment based on<br /> the civil liability provisions of the U.S. federal securities laws,<br /> may not be collectible in the United States and may not necessarily<br /> be enforced by an Israeli court. It also may be difficult to affect<br /> service of process on these persons in the United States or to<br /> assert U.S. securities law claims in original actions instituted in<br /> Israel. Additionally, it may be difficult for an investor, or any<br /> other person or entity, to initiate an action with respect to U.S.<br /> securities laws in Israel. Israeli courts may refuse to hear a<br /> claim based on an alleged violation of U.S. securities laws<br /> reasoning that Israel is not the most appropriate forum in which to<br /> bring such a claim. In addition, even if an Israeli court agrees to<br /> hear a claim, it may determine that Israeli law and not U.S. law is<br /> applicable to the claim. If U.S. law is found to be applicable, the<br /> content of applicable U.S. law often involves the testimony of<br /> expert witnesses, which can be a time consuming and costly process.<br /> Certain matters of procedure will also be governed by Israeli law.<br /> There is little binding case law in Israel that addresses the<br /> matters described above. As a result of the difficulty associated<br /> with enforcing a judgment against Microbot in Israel, it may be<br /> impossible to collect any damages awarded by either a U.S. or<br /> foreign court.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 34; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks<br /> Relating to Microbot’s Securities, Governance and Other<br /> Matters</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> If we fail to comply with the continued listing requirements of The<br /> Nasdaq Capital Market, our common stock may be delisted and the<br /> price of our common stock and our ability to access the capital<br /> markets could be negatively impacted.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our<br /> common stock is currently listed on the Nasdaq Capital Market. In<br /> order to maintain that listing, we must satisfy minimum financial<br /> and other continued listing requirements and standards, including<br /> those regarding director independence and independent committee<br /> requirements, minimum stockholders’ equity, minimum share price,<br /> and certain corporate governance requirements. There can be no<br /> assurances that we will be able to comply with the applicable<br /> listing standards. In 2018, we effected a 1:15 reverse stock split<br /> to address our stock price falling below the minimum share price<br /> required by Nasdaq. Failure to meet applicable Nasdaq continued<br /> listing standards could result in a delisting of our common stock.<br /> A delisting of our common stock from The Nasdaq Capital Market<br /> could materially reduce the liquidity of our common stock and<br /> result in a corresponding material reduction in the price of our<br /> common stock. In addition, delisting could harm our ability to<br /> raise capital on terms acceptable to us, or at all, and may result<br /> in the potential loss of confidence by investors, employees and<br /> fewer business opportunities. Additionally, if we are not eligible<br /> for quotation or listing on another exchange, trading of our common<br /> stock could be conducted only in the over-the-counter market or on<br /> an electronic bulletin board established for unlisted securities<br /> such as the Pink Sheets or the OTC Bulletin Board. In such event,<br /> it could become more difficult to dispose of, or obtain accurate<br /> price quotations for, our common stock, and there would likely also<br /> be a reduction in our coverage by securities analysts and the news<br /> media, which could cause the price of our common stock to decline<br /> further.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> We do not expect to pay cash dividends on our common<br /> stock.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> anticipate that we will retain our earnings, if any, for future<br /> growth and therefore do not anticipate paying cash dividends on our<br /> Common Stock in the future. Investors seeking cash dividends should<br /> not invest in our Common Stock for that purpose.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Anti-takeover provisions in the Company’s charter and bylaws under<br /> Delaware law may prevent or frustrate attempts by stockholders to<br /> change the board of directors or current management and could make<br /> a third-party acquisition of the Company<br /> difficult.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Provisions<br /> in the Company’s certificate of incorporation and bylaws may delay<br /> or prevent an acquisition or a change in management. These<br /> provisions include a classified board of directors. In addition,<br /> because the Company is incorporated in Delaware, it is governed by<br /> the provisions of Section 203 of the DGCL, which prohibits<br /> stockholders owning in excess of 15% of outstanding voting stock<br /> from merging or combining with the Company. Although the Company<br /> believes these provisions collectively will provide for an<br /> opportunity to receive higher bids by requiring potential acquirers<br /> to negotiate with the Company’s board of directors, they would<br /> apply even if the offer may be considered beneficial by some<br /> stockholders. In addition, these provisions may frustrate or<br /> prevent any attempts by the Company’s stockholders to replace or<br /> remove then current management by making it more difficult for<br /> stockholders to replace members of the board of directors, which is<br /> responsible for appointing members of management.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> We are subject to litigation, which may divert management’s<br /> attention and have a material adverse effect on our business,<br /> financial condition and results of operations.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> are the defendant in a lawsuit captioned Empery Asset Master Ltd.,<br /> Empery Tax Efficient, LP, Empery Tax Efficient II, LP, Hudson Bay<br /> Master Fund Ltd., Plaintiffs, against Microbot Medical Inc.,<br /> Defendant, in the Supreme Court of the State of New York, County of<br /> New York (Index No. 651182/2020). The complaint alleged, among<br /> other things, that we breached multiple representations and<br /> warranties contained in the Securities Purchase Agreement (the<br /> “SPA”) related to our June 8, 2017 equity financing (the<br /> “Financing”), of which the Plaintiffs participated. The complaint<br /> seeks rescission of the SPA and return of the Plaintiffs’ $6.75<br /> million purchase price with respect to the Financing.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management<br /> is unable to assess the likelihood that we would be successful in<br /> any trial with respect to the SPA or the Financing, having<br /> previously lost another lawsuit with respect to the Financing.<br /> Accordingly, no assurance can be given that if we go to trial and<br /> ultimately lose, or if we decide to settle at any time, such an<br /> adverse outcome would not be material to our consolidated financial<br /> position. Additionally, in any such case, we will likely be<br /> required to use available cash, or the proceeds from future<br /> offerings, towards the rescission or settlement, that we otherwise<br /> would have used to build our business and develop our technologies<br /> into commercial products. In such event, we would be required to<br /> raise additional capital sooner than we otherwise would, of which<br /> we can give no assurance of success, or delay, curtail or cease the<br /> commercialization of some or all of our product<br /> candidates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 35; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>General<br /> Risks</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Raising additional capital may cause dilution to the Company’s<br /> investors, restrict its operations or require it to relinquish<br /> rights to its technologies or product<br /> candidates.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Until<br /> such time, if ever, as the Company can generate substantial product<br /> revenues, it expects to finance its cash needs through a<br /> combination of equity offerings, including through its existing<br /> At-the-Market offering, licensing, collaboration or similar<br /> arrangements, grants and debt financings. The Company does not have<br /> any committed external source of funds. To the extent that the<br /> Company raises additional capital through the sale of equity or<br /> convertible debt securities, the ownership interest of its<br /> stockholders will be diluted, and the terms of these securities may<br /> include liquidation or other preferences that adversely affect the<br /> rights of holder of the Company’s common stock. Debt financing, if<br /> available, may involve agreements that include covenants limiting<br /> or restricting the Company’s ability to take specific actions, such<br /> as incurring additional debt, making capital expenditures,<br /> declaring dividends or other distributions, selling or licensing<br /> intellectual property rights, and other operating restrictions that<br /> could adversely affect the Company’s ability to conduct its<br /> business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If<br /> the Company raises additional funds through licensing,<br /> collaboration or similar arrangements, it may have to relinquish<br /> valuable rights to its technologies, future revenue streams,<br /> research and development programs or product candidates or to grant<br /> licenses on terms that may not be favorable to the Company. If the<br /> Company is unable to raise additional funds through equity or debt<br /> financings or other arrangements when needed, it may be required to<br /> delay, limit, reduce or terminate its product development or future<br /> commercialization efforts or grant rights to develop and market<br /> product candidates that it would otherwise prefer to develop and<br /> market itself.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot operates in a competitive industry and if its competitors<br /> have products that are marketed more effectively or develop<br /> products, treatments or procedures that are similar, more advanced,<br /> safer or more effective, its commercial opportunities will be<br /> reduced or eliminated, which would materially harm its<br /> business.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our<br /> competitors may develop products, treatments or procedures that<br /> directly compete with our products and potential products and which<br /> are similar, more advanced, safer or more effective than ours. The<br /> medical device industry is very competitive and subject to<br /> significant technological and practice changes. Microbot expects to<br /> face competition from many different sources with respect to the<br /> SCS, LIBERTY and other products that it is seeking to develop or<br /> commercialize with respect to its other product candidates in the<br /> future.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Competing<br /> against large established competitors with significant resources<br /> may make establishing a market for any products that it develops<br /> difficult which would have a material adverse effect on Microbot’s<br /> business. Microbot’s commercial opportunities could also be reduced<br /> or eliminated if its competitors develop and commercialize<br /> products, treatments or procedures quicker, that are safer, more<br /> effective, are more convenient or are less expensive than the SCS,<br /> LIBERTY or any product that Microbot may develop. Many of<br /> Microbot’s potential competitors have significantly greater<br /> financial resources and expertise in research and development,<br /> manufacturing, preclinical testing, conducting clinical trials,<br /> obtaining regulatory approvals and marketing approved products than<br /> Microbot may have. Mergers and acquisitions in the medical device<br /> industry market may result in even more resources being<br /> concentrated among a smaller number of Microbot’s potential<br /> competitors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Our business strategy in part relies on identifying, acquiring and<br /> developing complementary technologies and products, which entails<br /> risks which could negatively affect our business, operations and<br /> financial condition.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> may pursue other acquisitions of businesses and technologies.<br /> Acquisitions entail numerous risks, including:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties<br /> in the integration of acquired operations, services and<br /> products;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">failure<br /> to achieve expected synergies;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">diversion<br /> of management’s attention from other business concerns;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">assumption<br /> of unknown material liabilities of acquired companies;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">amortization<br /> of acquired intangible assets, which could reduce future reported<br /> earnings;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential<br /> loss of clients or key employees of acquired companies;<br /> and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">dilution<br /> to existing stockholders.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 36; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As<br /> part of our growth strategy, we may consider, and from time to time<br /> may engage in, discussions and negotiations regarding transactions,<br /> such as acquisitions, mergers and combinations within our industry.<br /> The purchase price for possible acquisitions could be paid in cash,<br /> through the issuance of common stock or other securities,<br /> borrowings or a combination of these methods.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> cannot be certain that we will be able to identify, consummate and<br /> successfully integrate acquisitions, and no assurance can be given<br /> with respect to the timing, likelihood or business effect of any<br /> possible transaction. For example, we could begin negotiations that<br /> we subsequently decide to suspend or terminate for a variety of<br /> reasons. However, opportunities may arise from time to time that we<br /> will evaluate. Any transactions that we consummate would involve<br /> risks and uncertainties to us. These risks could cause the failure<br /> of any anticipated benefits of an acquisition to be realized, which<br /> could have a material adverse effect on our business, financial<br /> condition, results of operations and prospects.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot operations in international markets involve inherent risks<br /> that Microbot may not be able to control.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> business plan includes the marketing and sale of its proposed<br /> product candidates internationally, and specifically in Europe and<br /> Israel. Accordingly, Microbot’s results could be materially and<br /> adversely affected by a variety of factors relating to<br /> international business operations that it may or may not be able to<br /> control, including:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">adverse<br /> macroeconomic conditions affecting geographies where Microbot<br /> intends to do business;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">closing<br /> of international borders, including as a result of biohazards or<br /> pandemics;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">foreign<br /> currency exchange rates;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">political<br /> or social unrest or economic instability in a specific country or<br /> region;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">higher<br /> costs of doing business in certain foreign countries;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">infringement<br /> claims on foreign patents, copyrights or trademark<br /> rights;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties<br /> in staffing and managing operations across disparate geographic<br /> areas;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties<br /> associated with enforcing agreements and intellectual property<br /> rights through foreign legal systems;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">trade<br /> protection measures and other regulatory requirements, which affect<br /> Microbot’s ability to import or export its product candidates from<br /> or to various countries;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">adverse<br /> tax consequences;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">unexpected<br /> changes in legal and regulatory requirements;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">military<br /> conflict, terrorist activities, natural disasters and medical<br /> epidemics; and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> ability to recruit and retain channel partners in foreign<br /> jurisdictions.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Microbot’s financial results may be affected by fluctuations in<br /> exchange rates and Microbot’s current currency hedging strategy may<br /> not be sufficient to counter such fluctuations.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> financial statements are denominated in U.S. dollars and the<br /> financial results of the Company are denominated in U.S. dollars,<br /> while a significant portion of Microbot’s business is conducted,<br /> and a substantial portion of its operating expenses are payable, in<br /> currencies other than the U.S. dollar. Exchange rate fluctuations<br /> may have an adverse impact on Microbot’s future revenues or<br /> expenses as presented in the financial statements. Microbot may in<br /> the future use financial instruments, such as forward foreign<br /> currency contracts, in its management of foreign currency exposure.<br /> These contracts would primarily require Microbot to purchase and<br /> sell certain foreign currencies with or for U.S. dollars at<br /> contracted rates. Microbot may be exposed to a credit loss in the<br /> event of non-performance by the counterparties of these contracts.<br /> In addition, these financial instruments may not adequately manage<br /> Microbot’s foreign currency exposure. Microbot’s results of<br /> operations could be adversely affected if Microbot is unable to<br /> successfully manage currency fluctuations in the future.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 37; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> The market price for our Common Stock may be<br /> volatile.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> market price for our Common Stock may be volatile and subject to<br /> wide fluctuations in response to factors including the<br /> following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">actual<br /> or anticipated fluctuations in our quarterly or annual operating<br /> results;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes<br /> in financial or operational estimates or projections;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">conditions<br /> in markets generally;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes<br /> in the economic performance or market valuations of companies<br /> similar to ours;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">announcements<br /> by us or our competitors of new products, acquisitions, strategic<br /> partnerships, joint ventures or capital commitments;</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our<br /> intellectual property position; and</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">general<br /> economic or political conditions in the United States, Israel or<br /> elsewhere.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> addition, the securities market has from time to time experienced<br /> significant price and volume fluctuations that are not related to<br /> the operating performance of particular companies. These market<br /> fluctuations may also materially and adversely affect the market<br /> price of shares of our Common Stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> The issuance of shares upon exercise of outstanding warrants and<br /> options could cause immediate and substantial dilution to existing<br /> stockholders.</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> issuance of shares upon exercise of warrants and options could<br /> result in substantial dilution to the interests of other<br /> stockholders since the holders of such securities may ultimately<br /> convert and sell the full amount issuable on conversion.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 1B. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_004"/>Unresolved Staff<br /> Comments</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not<br /> Applicable.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 2. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_005"/>Description of<br /> Property.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> principal executive office is located at 25 Recreation Drive, Unit<br /> 108, Hingham, MA 02043. Microbot also occupies facilities in<br /> premises of approximately 6,975 square feet at 6 Hayozma St.,<br /> Yokneam, P.O.B. 242, Israel. This facility is expected to provide<br /> the space and infrastructure necessary to accommodate its<br /> development work based on its current operating plan. Microbot does<br /> not own any real property.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 3. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_006"/>Legal<br /> Proceedings.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">From<br /> time to time, we may become involved in various lawsuits and legal<br /> proceedings, which arise in the ordinary course of business.<br /> However, litigation is subject to inherent uncertainties, and an<br /> adverse result in these or other matters may arise from time to<br /> time that may harm business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Litigation Resulting from 2017 Financing</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> were named as the defendant in a lawsuit captioned Empery Asset<br /> Master Ltd., Empery Tax Efficient, LP, Empery Tax Efficient II, LP,<br /> Hudson Bay Master Fund Ltd., Plaintiffs, against Microbot Medical<br /> Inc., Defendant, in the Supreme Court of the State of New York,<br /> County of New York (Index No. 651182/2020). The complaint alleges,<br /> among other things, that we breached multiple representations and<br /> warranties contained in the SPA, of which the Plaintiffs<br /> participated, and fraudulently induced Plaintiffs into signing the<br /> Securities Purchase Agreement (the “SPA”) related to our June 8,<br /> 2017 equity financing (the “Financing”). The complaint seeks<br /> rescission of the SPA and return of the Plaintiffs’ $6.75 million<br /> purchase price with respect to the Financing. Management is unable<br /> to assess the likelihood that we will succeed at trial with respect<br /> to the SPA or the Financing, having previously lost another lawsuit<br /> with respect to the Financing.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Alliance Litigation</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> April 28, 2019, we brought an action against Alliance Investment<br /> Management, Ltd. (“Alliance”), later amended to include Joseph Mona<br /> (“Mona”) as a defendant, in the Southern District of New York under<br /> Section 16(b) of the Securities Exchange Act of 1934, 15 U.S.C.<br /> 78p(b), to compel Alliance and Mona to disgorge short swing profits<br /> realized from purchases and sales of our securities within a period<br /> of less than six months. The case is Microbot Medical Inc. v.<br /> Alliance Investment Management, Ltd., No. 19-cv-3782-GBD (SDNY).<br /> The amount of profits was estimated in the complaint to be<br /> approximately $468,000.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 38; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> October 28, 2019, Alliance filed a motion for summary judgment<br /> requesting that the Court dismiss the claims against Alliance. On<br /> February 4, 2020, Mona answered the 16(b) claim we asserted against<br /> him by claiming various equitable defenses, and filed a<br /> counterclaim against Microbot under Section 10(b) of the Securities<br /> Exchange Act of 1934 and Rule 10b-5 promulgated thereunder,<br /> claiming a net loss on trading Microbot stock of<br /> $150,954.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> March 6, 2020, we filed a motion for judgment on the pleadings with<br /> respect to our 16(b) claim against Mona, together with a motion to<br /> dismiss Mona’s 10(b) counterclaim.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> September 17, 2020, the Court issued a Memorandum Decision &<br /> Order that, among other things, granted Alliance’s summary judgment<br /> motion. Our Section 16(b) claim against Mona remained pending<br /> following the Court’s dismissal of the 16(b) claim against<br /> Alliance.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> December 18, 2020, the Magistrate Judge issued a Report &<br /> Recommendation, which recommended that: (i) judgment of $484,614.30<br /> be entered in our favor on our Section 16(b) claim against Mona;<br /> and (ii) Mona’s Section 10(b) claim be dismissed with prejudice<br /> (except as to allegations regarding statements purportedly made by<br /> employees of Integra Consulting, an outside investor relations<br /> firm, which the Magistrate recommended be dismissed without<br /> prejudice).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> March 30, 2021, the Court issued an Order adopting the Magistrate<br /> Judge’s Report & Recommendation; and on March 31, 2021, the<br /> Clerk entered Judgement against Joseph Mona and in favor of<br /> Microbot in the amount of $484,614.30. On April 27, 2021, Mona<br /> filed an appeal of the Court’s Judgment, which is pending before<br /> the U.S. Court of Appeals for the Second Circuit.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> May 3, 2021, Microbot obtained a writ of execution to enforce the<br /> Judgment against Mona, given Mona’s failure to post a bond or other<br /> security in the full amount of the Judgment pending the appeal as<br /> required by the Federal Rules of Civil Procedure. On May 7, 2021,<br /> Microbot filed a motion to permit the registration of the Judgment<br /> in districts outside the Southern District of New York in which<br /> Mona may have assets available to satisfy the Judgment.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> June 2021, the Magistrate issued an order permitting Mona to file<br /> an Amended Counterclaim Complaint, and rejected our request to<br /> execute on the Judgment. We filed a response to Mona’s amended<br /> counterclaim on July 21, 2021, and are pursuing a renewed motion to<br /> execute on the Judgment and dismiss the counterclaim in view of<br /> case deficiencies revealed during discovery. A settlement<br /> conference has been scheduled in April 2022 with respect to Mona’s<br /> 10(b) counterclaim.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other<br /> than the foregoing, we are not currently a party in any legal<br /> proceeding or governmental regulatory proceeding nor are we<br /> currently aware of any pending or potential legal proceeding or<br /> governmental regulatory proceeding proposed to be initiated against<br /> us that would have a material adverse effect on us or our<br /> business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 4. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_007"/>Mine Safety<br /> Disclosures</span></b>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not<br /> applicable.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_a_008"><br /> </span>PART II</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 5. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_009"/>Market for Registrant’s Common Equity,<br /> Related Stockholder Matters and Issuer Purchases of Equity<br /> Securities</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our<br /> common stock is listed on the NASDAQ Capital Market under the<br /> symbol “MBOT” since November 29, 2016. Prior to that, our common<br /> stock was traded under the symbol “STEM.”</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of<br /> March 29, 2022, there were approximately 121 holders of record of<br /> our common stock, and the closing sales price of our common stock<br /> as reported on the NASDAQ Capital Market was $5.77.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Dividend<br /> Policy</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> have never paid cash dividends on our common stock and we do not<br /> anticipate paying cash dividends on common stock in the foreseeable<br /> future. The payment of dividends on our common stock will depend on<br /> earnings, financial condition, debt covenants in place, and other<br /> business and economic factors affecting us at such time as our<br /> Board of Directors may consider relevant. If we do not pay<br /> dividends, our common stock may be less valuable because a return<br /> on a stockholders’ investment will only occur if our stock price<br /> appreciates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 39; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Equity<br /> Compensation Plan Information Table</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> following table provides information about shares of our common<br /> stock that may be issued upon the exercise of options under all of<br /> our existing compensation plans as of December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Number of securities to be issued upon exercise of outstanding<br /> options, warrants and rights</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Weighted-<br />average exercise<br />price of outstanding options, warrants<br />and rights</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Number of securities remaining available for future issuance</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Plan Category</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equity compensation plans approved by<br /> security holders:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; width: 58%; text-align: left">2017<br /> Equity Incentive Plan</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right">531,299</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">10.48</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right">92,419</td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">2020 Omnibus<br /> Performance Award Plan</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">326,426</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">7.86</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,094,226</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Equity compensation plans not approved<br /> by security holders:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Microbot Israel<br /> Employee Stock Option Plan(1)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">61,577</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">0.01</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Stock<br /> Options (2)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">77,<br /> 846</span></td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td> <td style="padding-bottom: 1.5pt; text-align: right">4.20</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 2.5pt">Total</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">  </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 997,148</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt; text-align: right"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">  </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,186,645</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table> <p style="margin-top: 0; margin-bottom: 0"> </p> <p><!-- Field: Rule-Page --></p> <p><!-- Field: /Rule-Page --></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Such<br /> options were originally issued by Microbot Israel under its<br /> Employee Stock Option Plan, and represented the right to purchase<br /> an aggregate of 500,000 of Microbot Israel’s ordinary shares. As of<br /> the effective time of the Merger, such options were retroactively<br /> adjusted to reflect the Merger and now represent the right to<br /> purchase shares of our common stock.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Such<br /> options were originally issued by Microbot Israel to MEDX Ventures<br /> Group LLC, of which Mr. Gadot is the Chief Executive Officer,<br /> Company Group Chairman and majority equity owner, and represented<br /> the right to purchase an aggregate of 403,592 of Microbot Israel’s<br /> ordinary shares. As of the effective time of the Merger, such<br /> options were retroactively adjusted to reflect the Merger and now<br /> represent the right to purchase shares of our common<br /> stock.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 6. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_010"/>[Reserved]</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 7. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_011"/>Management’s Discussion and Analysis of<br /> Financial Condition and Results of<br /> Operations.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Forward<br /> Looking Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain<br /> information contained in this MD&A includes “forward-looking<br /> statements.” Statements which are not historical reflect our<br /> current expectations and projections about our future results,<br /> performance, liquidity, financial condition and results of<br /> operations, prospects and opportunities and are based upon<br /> information currently available to us and our management and their<br /> interpretation of what is believed to be significant factors<br /> affecting our existing and proposed business, including many<br /> assumptions regarding future events. Actual results, performance,<br /> liquidity, financial condition and results of operations, prospects<br /> and opportunities could differ materially and perhaps substantially<br /> from those expressed in, or implied by, these forward-looking<br /> statements as a result of various risks, uncertainties and other<br /> factors, including those risks described in detail in the section<br /> of this Annual Report on Form 10-K entitled “Risk Factors” as well<br /> as elsewhere in this Annual Report.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Forward-looking<br /> statements, which involve assumptions and describe our future<br /> plans, strategies, and expectations, are generally identifiable by<br /> use of the words “may,” “should,” “would,” “will,” “could,”<br /> “scheduled,” “expect,” “anticipate,” “estimate,” “believe,”<br /> “intend,” “seek,” or “project” or the negative of these words or<br /> other variations on these words or comparable<br /> terminology.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> light of these risks and uncertainties, and especially given the<br /> nature of our existing and proposed business, there can be no<br /> assurance that the forward-looking statements contained in this<br /> section and elsewhere in this Annual Report on Form 10-K will in<br /> fact occur. Potential investors should not place undue reliance on<br /> any forward-looking statements. Except as expressly required by the<br /> federal securities laws, there is no undertaking to publicly update<br /> or revise any forward-looking statements, whether as a result of<br /> new information, future events, changed circumstances or any other<br /> reason.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Overview</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> is a pre-clinical medical device company specializing in the<br /> research, design and development of next generation robotic<br /> endoluminal surgery devices targeting the minimally invasive<br /> surgery space. Microbot is primarily focused on leveraging its<br /> micro-robotic technologies with the goal of redefining surgical<br /> robotics while improving surgical outcomes for patients.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 40; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> current technological platforms, ViRob<sup>TM</sup>,<br /> TipCAT<sup>TM</sup> and LIBERTY<sup>®</sup> (including certain<br /> CardioSert assets), are comprised of proprietary innovative<br /> technologies. Using the ViRob platform, Microbot is currently<br /> developing the Self-Cleaning Shunt for the treatment of<br /> hydrocephalus and Normal Pressure Hydrocephalus, or NPH. Utilizing<br /> the LIBERTY and CardioSert platforms, Microbot is developing the<br /> first ever fully disposable robot for various endovascular<br /> interventional procedures. In addition, the Company is focused on<br /> the development of a Multi Generation Pipeline Portfolio utilizing<br /> all of its proprietary technologies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has a patent portfolio of 47 issued/allowed patents and 29 patent<br /> applications pending worldwide.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Technological<br /> Platforms</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>ViRob</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> ViRob is an autonomous crawling micro-robot which can be controlled<br /> remotely or within the body. Its miniature dimensions are expected<br /> to allow it to navigate and crawl in different natural spaces<br /> within the human body, including blood vessels, the digestive tract<br /> and the respiratory system as well as artificial spaces such as<br /> shunts, catheters, ports, etc. Its unique structure is expected to<br /> give it the ability to move in tight spaces and curved passages as<br /> well as the ability to remain within the human body for prolonged<br /> time. The SCS product was developed using the ViRob<br /> technology.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>TipCAT</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> TipCAT is a disposable self-propelled locomotive device that is<br /> specially designed to advance in tubular anatomies. The TipCAT is a<br /> mechanism comprising a series of interconnected balloons at the<br /> device’s tip that provides the TipCAT with its forward locomotion<br /> capability. The device can self-propel within natural tubular<br /> lumens such as the blood vessels, respiratory and the urinary and<br /> GI tracts. A single channel of air/fluid supply sequentially<br /> inflates and deflates a series of balloons creating an inchworm<br /> like forward motion. The TipCAT maintains a standard working<br /> channel for treatments. Unlike standard access devices such as<br /> guidewires, catheters for vascular access and endoscopes, the<br /> TipCAT does not need to be pushed into the patient’s lumen using<br /> external pressure; rather, it will gently advance itself through<br /> the organ’s anatomy. As a result, the TipCAT is designed to be able<br /> to reach every part of the lumen under examination regardless of<br /> the topography, be less operator dependent, and greatly reduce the<br /> likelihood of damage to lumen structure. The TipCAT thus offers<br /> functionality features equivalent to modern tubular access devices,<br /> along with advantages associated with its physiologically adapted<br /> self-propelling mechanism, flexibility, and design.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>One<br /> & Done<sup>TM</sup> (CardioSert) Technology</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> May 25, 2018, Microbot acquired a patent-protected technology from<br /> CardioSert Ltd., a privately-held medical device company based in<br /> Israel that was part of a technological incubator supported by the<br /> Israel Innovation Authorities. The CardioSert technology<br /> contemplates a combination of a guidewire and microcatheter,<br /> technologies that are broadly used for surgery within a tubular<br /> organ or structure such as a blood vessel or duct. The CardioSert<br /> technology features a unique guidewire delivery system with<br /> steering and stiffness control capabilities which when developed is<br /> expected to give the physician the ability to control the tip<br /> curvature, to adjust tip load to varying degrees of stiffness in a<br /> gradually continuous manner. The CardioSert technology was<br /> originally developed to support interventional cardiologists in<br /> crossing chronic total occlusions (CTO) during percutaneous<br /> coronary intervention (PCI) procedures and has the potential to be<br /> used in other spaces and applications, such as peripheral<br /> intervention, and neurosurgery. The CardioSert tool is now<br /> trademarked as “One & Done<sup>TM</sup>.”</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>LIBERTY</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> January 13, 2020, Microbot unveiled what it believes is the world’s<br /> first fully disposable robotic system for use in Endovascular<br /> Interventional procedures, such as cardiovascular, peripheral and<br /> neurovascular. The LIBERTY robotic system features a unique compact<br /> design with the capability to be operated remotely, reduce<br /> radiation exposure and physical strain to the physician, as well as<br /> the potential to eliminate the use of multiple consumables when<br /> used with its “One & Done” capabilities, based in part on the<br /> CardioSert platform or possibly other guidewire/microcatheter<br /> technologies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> August 17, 2020, Microbot announced the successful conclusion of<br /> its feasibility animal study using the LIBERTY robotic system. The<br /> study met all of its end points with no intraoperative adverse<br /> events, which supports Microbot’s objectives to allow physicians to<br /> conduct a catheter-based procedure from outside the catheterization<br /> laboratory (cath-lab), avoiding radiation exposure, physical strain<br /> and the risk of cross contamination. The study was performed by two<br /> leading physicians in the neuro vascular and peripheral vascular<br /> intervention spaces, and the results demonstrated robust navigation<br /> capabilities, intuitive usability and accurate deployment of<br /> embolic agents, most of which was conducted remotely from the<br /> cath-lab’s control room.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 41; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> December 22, 2021, we entered into a strategic collaboration<br /> agreement for technology co-development with Stryker Corporation,<br /> acting through its Neurovascular Division. Pursuant to the<br /> agreement, the collaborative development program between Stryker<br /> and us aims to integrate certain of Stryker’s instruments with our<br /> LIBERTY Robotic System to address certain neurovascular procedures.<br /> The activities contemplated by the Agreement shall be specified in<br /> one or more development plans derived from the terms and conditions<br /> set forth in the Agreement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> are continuously exploring and evaluating additional innovative<br /> guidewire/microcatheter technologies to be integrated and combined<br /> with the LIBERTY robotic platform.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Financial<br /> Operations Overview</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Research and Development Expenses</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research<br /> and development expenses consist primarily of salaries and related<br /> expenses and overhead for Microbot’s research, development and<br /> engineering personnel, prototype materials and research studies,<br /> obtaining and maintaining Microbot’s patent portfolio. Microbot<br /> expenses its research and development costs as incurred.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> General and Administrative Expenses</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">General<br /> and administrative expenses consist primarily of the costs<br /> associated with management salaries and benefits, professional fees<br /> for accounting, auditing, consulting and legal services, and<br /> allocated overhead expenses.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> expects that its general and administrative expenses will increase<br /> over the long-term, even if a period-to-period comparison may show<br /> a decrease, as it expands its operating activities, maintains and<br /> expands its patent portfolio, and maintains compliance with<br /> exchange listing and SEC requirements. Microbot expects these<br /> potential increases will likely include management costs, legal<br /> fees, accounting fees, directors’ and officers’ liability insurance<br /> premiums and expenses associated with investor<br /> relations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Income Taxes</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has incurred net losses and has not recorded any income tax<br /> benefits for the losses. It is still in its development stage and<br /> has not yet generated revenues, therefore, it is more likely than<br /> not that sufficient taxable income will not be available for the<br /> tax losses to be fully utilized in the future.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Critical<br /> Accounting Policies and Significant Judgments and<br /> Estimates</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management’s<br /> discussion and analysis of Microbot’s financial condition and<br /> results of operations are based on its consolidated financial<br /> statements, which have been prepared in accordance with U.S.<br /> generally accepted accounting principles, or GAAP. The preparation<br /> of these consolidated financial statements requires Microbot to<br /> make estimates and judgments that affect the reported amounts of<br /> assets, liabilities, and expenses and the disclosure of contingent<br /> assets and liabilities at the date of the consolidated financial<br /> statements. Microbot bases its estimates on historical experience,<br /> known trends and events, and various other factors that are<br /> believed to be reasonable under the circumstances, the results of<br /> which form the basis for making judgments about the carrying value<br /> of assets and liabilities that are not readily apparent from other<br /> sources. Actual results may differ materially from these estimates<br /> under different assumptions or conditions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While<br /> Microbot’s significant accounting policies are described in more<br /> detail in the notes to its consolidated financial statements,<br /> Microbot believes the following accounting policies are the most<br /> critical for fully understanding and evaluating its consolidated<br /> financial condition and results of operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Contingencies</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management<br /> records and discloses legal contingencies in accordance with ASC<br /> Topic 450 <i>Contingencies</i>. A provision is recorded when it is<br /> both probable that a liability has been incurred and the amount of<br /> the loss can be reasonably estimated. The Company monitors the<br /> stage of progress of its litigation matters to determine if any<br /> adjustments are required.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Fair Value of Financial Instruments</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company measures the fair value of certain of its financial<br /> instruments on a recurring basis.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A<br /> fair value hierarchy is used to rank the quality and reliability of<br /> the information used to determine fair values. Financial assets and<br /> liabilities carried at fair value will be classified and disclosed<br /> in one of the following three categories:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level<br /> 1 – Quoted prices (unadjusted) in active markets for identical<br /> assets and liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level<br /> 2 – Inputs other than Level 1 that are observable, either directly<br /> or indirectly, such as unadjusted quoted prices for similar assets<br /> and liabilities, unadjusted quoted prices in the markets that are<br /> not active, or other inputs that are observable or can be<br /> corroborated by observable market data for substantially the full<br /> term of the assets or liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level<br /> 3 – Unobservable inputs that are supported by little or no market<br /> activity and that are significant to the fair value of the assets<br /> or liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 42; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Results<br /> of Operations</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Comparison of Years Ended December 31, 2021 and<br /> 2020</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> following table sets forth the key components of Microbot’s results<br /> of operations for the years ended December 31, 2021 and 2020 (in<br /> thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> For the Years Ended<br />December 31,</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td> <td style="padding-bottom: 1.5pt"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2021</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2020</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Change</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Research and development<br /> expenses</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(6,153</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(3,396</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(2,757</td> <td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">General and administrative<br /> expenses</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(5,204</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(5,693</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">489</td> <td style="text-align: left"/> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Financing income (expenses), net</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">44</td> <td style="text-align: left"/> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(80</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">124</td> <td style="text-align: left"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Research<br /> and Development Expenses</i>. Microbot’s research and development<br /> expenses were approximately $6,153,000 for the year ended December<br /> 31, 2021, compared to approximately $3,396,000 for the same period<br /> in 2020. The increase in research and development expenses of<br /> approximately $2,757,000 in 2021 as compared to 2020 was primarily<br /> due to increased salaries and recruitment of employees,<br /> professional services and material expenses relating to the LIBERTY<br /> project. Microbot expects its research and development expenses to<br /> continue to increase over time as Microbot advances its development<br /> programs and begins pre-clinical and clinical trials for the SCS,<br /> LIBERTY and TipCAT research programs.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>General<br /> and Administrative Expenses</i>. General and administrative<br /> expenses were approximately $5,204,000 for the year ended December<br /> 31, 2021, compared to approximately $5,693,000 for the same period<br /> in 2020. The decrease in general and administrative expenses of<br /> approximately $489,000 in 2021 as compared to 2020 was primarily<br /> due to decreased salaries, share-based compensation and government<br /> fees of $885,000, partially offset by an increase of $396,000 in<br /> insurance costs and professional services. Microbot believes its<br /> general and administrative expenses may increase over time as it<br /> advances its programs, requiring additional investments in<br /> headcount, facilities and other general and administrative<br /> operating activities to support its growth, and as it continues to<br /> incur expenses associated with public-company<br /> compliance.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Financing<br /> (income) Expenses</i>. Financing income were approximately $44,000<br /> for the year ended December 31, 2021, consisting of the reversal of<br /> $131,000 of other liability stemming from our 2016 merger with<br /> StemCells, offset by exchange rate expenses of $87,000, compared to<br /> net financial expenses of approximately $80,000 for the same period<br /> in 2020, consisting of approximately $80,000 in interest payments<br /> related to the appeal of our Sabby litigation as well as $70,000<br /> exchange rate expenses and net interest, offset by $70,000 capital<br /> gain.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Liquidity<br /> and Capital Resources</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has incurred losses since inception and negative cash flows from<br /> operating activities for the years ended December 31, 2021 and<br /> 2020. As of December 31, 2021 and 2020, respectively, Microbot had<br /> a net working capital of approximately $13,895,000 and $23,908,000,<br /> consisting primarily of cash and cash equivalents. Microbot<br /> anticipates that it will continue to incur net losses for the<br /> foreseeable future as it continues research and development efforts<br /> of its product candidates, hires additional staff, including<br /> clinical, scientific, operational, financial and management<br /> personnel, and continues to incur costs associated with being a<br /> public company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> has funded its operations through the issuance of capital stock,<br /> grants from the Israeli Innovation Authority, and convertible debt.<br /> Since inception (November 2010) through December 31, 2021, Microbot<br /> has raised net cash proceeds of approximately $54,770,000, and<br /> incurred a total cumulative loss of approximately $55,593,000.<br /> Microbot returned $3,375,000 (before interest) of such proceeds to<br /> an investor as a result of an adverse outcome in a litigation that<br /> concluded in the first quarter of 2020, and is now subject to an<br /> additional lawsuit seeking the return of an additional $6,750,000<br /> of such proceeds. This litigation is in its early stages and we<br /> cannot project what the eventual outcome will be, though management<br /> is vigorously defending its position that no return of capital is<br /> warranted.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> Israel obtained from the Israeli Innovation Authority (“IIA”)<br /> grants for participation in research and development for the years<br /> 2013 through December 31, 2021 in the total amount of approximately<br /> $1,500,000 and, in return, Microbot Israel is obligated to pay<br /> royalties amounting to 3%-3.5% of its future sales up to the amount<br /> of the grant. The grant is linked to the exchange rate of the<br /> dollar to the New Israeli Shekel and bears interest at an annual<br /> rate of USD LIBOR. Under the terms of the grant and applicable law,<br /> Microbot is restricted from transferring any technologies,<br /> know-how, manufacturing or manufacturing rights developed using the<br /> grant outside of Israel without the prior approval of the Israel<br /> Innovation Authority. Microbot has no obligation to repay the<br /> grant, if the SCS project fails, is unsuccessful or aborted before<br /> any sales are generated. The financial risk is assumed completely<br /> by the IIA.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 43; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To<br /> date, we have not generated revenues from our operations. As of<br /> December 31, 2021, we had unrestricted cash, cash equivalents and<br /> marketable securities of approximately $15,492,000, excluding<br /> encumbered cash, which management believes is sufficient to fund<br /> our operations for more than 12 months from the date of this Annual<br /> Report on Form 10-K and sufficient to fund our operations necessary<br /> to continue development activities of our current proposed products<br /> with flexibility to adjust our costs to the cash needed for the<br /> next 12 months. However, in the event we are unsuccessful in our<br /> current litigation discussed above, pursuant to which certain<br /> investors are seeking the return of $6,750,000 in proceeds we<br /> received from them in a 2017 stock offering, we may have funds for<br /> less than 12 months.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> plans to continue to fund its research and development and other<br /> operating expenses, other development activities relating to<br /> additional product candidates, and the associated losses from<br /> operations, through its existing cash and possibly additional<br /> grants from the Israeli Innovation Authority. Microbot intends to<br /> also raise capital through future issuances of debt and/or equity<br /> securities, including through its existing and as-yet-unused<br /> At-the-Market offering or registered offerings under its existing<br /> Registration Statement on Form S-3 for up to $75 million of<br /> securities, which it may draw down from time to time. These<br /> issuances may be opportunistic and even if the Company has enough<br /> funds at such time for operations for more than 12 months. The<br /> capital raises from issuances of convertible debt and equity<br /> securities could result in additional dilution to Microbot’s<br /> shareholders. In addition, to the extent Microbot determines to<br /> incur additional indebtedness, Microbot’s incurrence of additional<br /> debt could result in debt service obligations and operating and<br /> financing covenants that would restrict its operations. Microbot<br /> can provide no assurance that financing will be available in the<br /> amounts it needs or on terms acceptable to it, if at all. If<br /> Microbot is not able to secure adequate additional working capital<br /> when it becomes needed, it may be required to make reductions in<br /> spending, extend payment terms with suppliers, liquidate assets<br /> where possible and/or suspend or curtail planned research programs.<br /> Any of these actions could materially harm Microbot’s<br /> business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Cash Flows</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> following table provides a summary of the net cash flow activity<br /> for each of the periods presented (in thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> For the Years Ended<br />December 31,</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2021</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2020</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Net cash flows from<br /> operating activities</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 16%; text-align: right">(9,354</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 16%; text-align: right">(7,252</td> <td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net cash flows from investing<br /> activities</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,200</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(2,768</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Net cash flows<br /> from financing activities</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (3,375</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net decrease in<br /> cash and cash equivalents</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (6,154</td> <td style="padding-bottom: 2.5pt; text-align: left">)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (13,395</td> <td style="padding-bottom: 2.5pt; text-align: left">)</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Comparison of the Years Ended December 31, 2021 and<br /> 2020</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash<br /> used in operating activities for the year ended December 31, 2021<br /> was approximately $9,354,000, compared to $7,252,000 in 2020. The<br /> increase was from higher net losses in 2021, mostly related to<br /> increase in research and development relating to<br /> LIBERTY.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net<br /> cash flows from investing activities increased in 2021 compared to<br /> 2020 primarily from the net purchases of marketable<br /> securities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net<br /> cash flows from financing activities decreased in 2021 due<br /> primarily to a 2020 return of $3,375,000 of capital to investors as<br /> a result of the adverse outcome of litigation discussed<br /> above.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 7A. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_012"/>Quantitative and Qualitative<br /> Disclosures About Market Risk.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Interest<br /> Rate Risk</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot’s<br /> cash and cash equivalents as of December 31, 2021 consisted of<br /> readily available checking and money market funds. Microbot’s<br /> primary exposure to market risk is interest income sensitivity,<br /> which is affected by changes in the general level of U.S. interest<br /> rates. However, because of the short-term nature of the instruments<br /> in Microbot’s portfolio, a sudden change in market interest rates<br /> would not be expected to have a material impact on Microbot’s<br /> financial condition and/or results of operations. Microbot does not<br /> believe that its cash or cash equivalents have significant risk of<br /> default or illiquidity. While Microbot believes its cash and cash<br /> equivalents do not contain excessive risk, Microbot cannot provide<br /> absolute assurance that in the future its investments will not be<br /> subject to adverse changes in market value. In addition, Microbot<br /> maintains significant amounts of cash and cash equivalents at one<br /> or more financial institutions that are in excess of federally<br /> insured limits.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Foreign<br /> Exchange Risks</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our<br /> financial statements are denominated in U.S. dollars and financial<br /> results are denominated in U.S. dollars, while a significant<br /> portion of our business is conducted, and a substantial portion of<br /> our operating expenses are payable, in currencies other than the<br /> U.S. dollar.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 44; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exchange<br /> rate fluctuations may have an adverse impact on our future<br /> revenues, if any, or expenses as presented in the financial<br /> statements. We may in the future use financial instruments, such as<br /> forward foreign currency contracts, in its management of foreign<br /> currency exposure. These contracts would primarily require us to<br /> purchase and sell certain foreign currencies with or for U.S.<br /> dollars at contracted rates. We may be exposed to a credit loss in<br /> the event of non-performance by the counterparties of these<br /> contracts. In addition, these financial instruments may not<br /> adequately manage our foreign currency exposure. Our results of<br /> operations could be adversely affected if we are unable to<br /> successfully manage currency fluctuations in the future.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Effects<br /> of Inflation</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inflation<br /> generally affects Microbot by increasing its research and<br /> development expenses. Microbot does not believe that inflation and<br /> changing prices had a significant impact on its results of<br /> operations for any periods presented herein, but may have a<br /> significant, adverse impact in 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 8. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_013"/>Financial Statements and Supplementary<br /> Data.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> consolidated financial statements and supplementary data required<br /> by this item are included in this Annual Report on Form 10-K<br /> immediately following Part IV and are incorporated herein by<br /> reference.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 9. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_014"/>Changes in and Disagreements with<br /> Accountants on Accounting and Financial<br /> Disclosure.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">None.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 9A. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_015"/>Controls and<br /> Procedures.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><br /> Disclosure Controls and Procedures</span>. We maintain a system of<br /> disclosure controls and procedures (as defined in Rule 13a-15(e)<br /> under the Exchange Act). As required by Rule 13a-15(b) under the<br /> Exchange Act, management of the Company, under the direction of our<br /> Chief Executive Officer and Chief Financial Officer, reviewed and<br /> performed an evaluation of the effectiveness of design and<br /> operation of our disclosure controls and procedures (as defined in<br /> Rule 13a-15(e) under the Exchange Act) as of December 31, 2021.<br /> Based on that review and evaluation, the Chief Executive Officer<br /> and Chief Financial Officer, along with the management of the<br /> Company, have determined that as of December 31, 2021, the<br /> disclosure controls and procedures were effective to provide<br /> reasonable assurance that information required to be disclosed by<br /> us in the reports that we file or submit under the Exchange Act is<br /> recorded, processed, summarized and reported within the time<br /> periods specified in the SEC’s rules and forms and were effective<br /> to provide reasonable assurance that such information is<br /> accumulated and communicated to our management, including our<br /> principal executive officer and principal financial officer, as<br /> appropriate to allow timely decisions regarding required<br /> disclosures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><br /> Management’s Annual Report on Internal Control Over Financial<br /> Reporting.</span> Our management is responsible for establishing<br /> and maintaining effective internal control over financial reporting<br /> (as defined in Rule 13a – 15(f) of the Exchange Act). There are<br /> inherent limitations to the effectiveness of any internal control,<br /> including the possibility of human error and the circumvention or<br /> overriding of controls. Accordingly, even effective internal<br /> controls can provide only reasonable assurance with respect to<br /> financial statement preparation. Further, because of changes in<br /> conditions, the effectiveness of internal control may vary over<br /> time. We have assessed the effectiveness of our internal controls<br /> over financial reporting (as defined in Rule 13a -15(f) of the<br /> Exchange Act) as of December 31, 2021, and have concluded that, as<br /> of December 31, 2021, our internal control over financial reporting<br /> was effective.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This<br /> annual report does not include an attestation report of our<br /> registered public accounting firm regarding internal control over<br /> financial reporting. Management’s report was not subject to<br /> attestation by our registered public accounting firm pursuant to<br /> the rules of the Securities and Exchange Commission that permit us<br /> to provide only management’s report in this annual<br /> report.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><br /> Changes in Internal Control Over Financial Reporting.</span> There<br /> were no changes in our internal control over financial reporting,<br /> identified in connection with the evaluation of such internal<br /> control that occurred during our last fiscal quarter that have<br /> materially affected, or are reasonably likely to materially affect,<br /> our internal control over financial reporting.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 9B. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_016"/>Other<br /> Information.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">None.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 9C. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_017"/>Disclosure Regarding Foreign<br /> Jurisdictions that Prevent Inspections.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">None.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 45; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_a_018"><br /> </span>PART III</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 10. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_019"/>Directors, Executive Officers, and<br /> Corporate Governance.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Board of Directors</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> currently have seven directors serving on our Board. The following<br /> table lists the names, ages and positions of the individuals who<br /> serve as directors of the Company, as of March 29, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Name</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Age</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Position</b></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; width: 25%; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Harel<br /> Gadot</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 5%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">50</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 66%; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">President,<br /> Chief Executive Officer and Chairman of the Board of<br /> Directors</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yoseph<br /> Bornstein(1)(3)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">64</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott<br /> Burell(1)(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">57</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Martin<br /> Madden(1)(3)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">61</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prattipati<br /> Laxminarain(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">64</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Aileen<br /> Stockburger(3)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">59</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tal<br /> Wenderow(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">47</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Rule-Page --></p> <p><!-- Field: /Rule-Page --></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Member<br /> of Audit Committee.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Member<br /> of Corporate Governance Committee.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Member<br /> of Compensation Committee.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> have a classified Board, with each of our directors serving a<br /> staggered three-year term. The following table shows the current<br /> composition of the three classes of our Board:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class<br /> I Directors (terms scheduled to expire in 2022):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Harel<br /> Gadot</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Martin<br /> Madden</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tal<br /> Wenderow</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class<br /> II Directors (term scheduled to expire in 2023):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott<br /> Burell</span></p> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">  </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> Aileen Stockburger</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class<br /> III Directors (term scheduled to expire in 2024):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yoseph<br /> Bornstein</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prattipati<br /> Laxminarain</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Harel<br /> Gadot</i>, became President, Chief Executive Officer and Chairman<br /> of the Company’s Board following the consummation of the merger of<br /> C&RD Israel Ltd, a wholly owned subsidiary of the Company, with<br /> and into Microbot Medical Ltd. (“Microbot Israel”), with Microbot<br /> Israel surviving as a wholly owned subsidiary of the Company (the<br /> “Merger”). Mr. Gadot is a co-founder of Microbot Israel and has<br /> served as Microbot Israel’s Chief Executive Officer since Microbot<br /> Israel was founded in November 2010. He has been the Chairman of<br /> Microbot Israel’s board of directors since July 2014. He also<br /> serves as the Chairman of XACT Robotics Ltd., an Israel-based<br /> private company seeking to develop a novel platform technology for<br /> robotic needle steering in minimally invasive interventional<br /> procedures such as biopsies and ablations, since August 2013 and<br /> MEDX Xelerator L.P., a medical device and digital health Israeli<br /> incubator, since July 2016. From December 2007 to April 2010 Mr.<br /> Gadot was a Worldwide Group Marketing Director at Ethicon Inc., a<br /> Johnson and Johnson Company, where he was responsible for the<br /> global strategic marketing of the Company. Mr. Gadot also held<br /> management positions, as well as leading regional strategic<br /> position for Europe, Middle-East and Africa, as well as In Israel,<br /> while at Johnson and Johnson. Mr. Gadot served as director for<br /> ConTIPI Ltd. from August 2010 until November 2013 when ConTIPI Ltd.<br /> was acquired by Kimberly-Clark Corporation. Mr. Gadot holds a B.Sc.<br /> in Business from Siena College, Loudonville NY, and an M.B.A. from<br /> the University of Manchester, UK. The Company believes that Mr.<br /> Gadot is qualified to serve as Chairman of the Board and as<br /> President and Chief Executive Officer of the Company due to his<br /> extensive experience in strategic marketing and general management<br /> in the medical device industry.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 46; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Yoseph<br /> Bornstein</i>, became a director of the Company following the<br /> Merger. Mr. Bornstein is a co-founder of Microbot Israel and has<br /> been a member of the Board of Directors since Microbot Israel was<br /> founded in November 2010. Mr. Bornstein founded Shizim Ltd., a life<br /> science holding group in October 2000 and has served as its<br /> president since then. Mr. Bornstein is the Chairman of GCP Clinical<br /> Studies Ltd., a provider of clinical research services and<br /> educational programs in Israel since January 2002. He is the<br /> Chairman of Biotis Ltd., a service company for the<br /> bio-pharmaceutical industry, since June 2000. In addition, he is<br /> the Chairman of Dolphin Medical Ltd., which supplies the medical<br /> device industry, since April 2012, and the Chairman of ASIS<br /> Enterprises B.B.G. Ltd., a business development company focusing on<br /> creating business ties between Israeli and Japanese entities, since<br /> August 2007. Mr. Bornstein is a co-founder and director of XACT<br /> Robotics, which is developing a novel platform technology for<br /> robotic needle steering in minimally invasive interventional<br /> procedures. In October 1992, Mr. Bornstein founded Pharmateam Ltd.,<br /> an Israeli company that specialized in representing international<br /> pharmaceutical companies which was sold in 2000. Mr. Bornstein is<br /> also a founder of a number of other privately held life-science<br /> companies. Mr. Bornstein served as the Biotechnology Committee<br /> Chairman of the Unites States-Israel Science & Technology<br /> Commission (the “USISTC”) from September 2002 to February 2005 as<br /> well as a consultant for USISTC from September 2002 to February<br /> 2005. He is also the founder of ILSI-Israel Life Science Industry<br /> Organization (who was integrated into IATI) and ITTN-Israel Tech<br /> Transfer Organization. He founded in July 2014 ShizimXL Ltd., an<br /> international medical device innovation center, and founded in<br /> January 2020 ShizimVS Ltd., a digital health innovation center. Mr.<br /> Bornstein was nominated in August 2021 to be an external director<br /> in Can-fit BioPharma Ltd. (Nasdaq:CANF). The Company believes that<br /> Mr. Bornstein is qualified to serve as a member of the Board due to<br /> his extensive experience in, and knowledge of, the life sciences<br /> industry and international business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Scott<br /> R. Burell</i>, became a director of the Company following the<br /> Merger. Since August 1, 2018, Mr. Burell has been the Chief<br /> Financial Officer and Secretary of AIVITA Biomedical, Inc., an<br /> Irvine California-based immuno-oncology company focused on the<br /> advancement of commercial and clinical-stage programs utilizing<br /> curative and regenerative medicines. From November 2006 until its<br /> sale to Invitae Corp. (NYSE: NVTA) in November 2017, he was the<br /> Chief Financial Officer, Secretary and Treasurer of CombiMatrix<br /> Corporation (NASDAQ: CBMX), a family health-focused clinical<br /> molecular diagnostic laboratory specializing in pre-implantation<br /> genetic screening, prenatal diagnosis, miscarriage analysis, and<br /> pediatric developmental disorders. He successfully led the<br /> split-off of CombiMatrix in 2007 from its former parent, has led<br /> several successful public and private debt and equity financing<br /> transactions as well as CombiMatrix’s reorganization in 2010. Prior<br /> to this, Mr. Burell had served as CombiMatrix’s Vice President of<br /> Finance since November 2001 and as its Controller from February<br /> 2001 to November 2001. From May 1999 to first joining CombiMatrix<br /> in February 2001, Mr. Burell was the Controller for Network<br /> Commerce, Inc. (NASDAQ: SPNW), a publicly traded technology and<br /> information infrastructure company located in Seattle. Prior to<br /> this, Mr. Burell spent nine years with Arthur Andersen’s Audit and<br /> Business Advisory practice in Seattle. During his tenure in public<br /> accounting, Mr. Burell worked with many clients, both public and<br /> private, in the high-tech and healthcare markets, and was involved<br /> in numerous public offerings, spin-offs, mergers and acquisitions.<br /> Mr. Burell obtained his Washington state CPA license in 1992 and is<br /> a certified public accountant (currently inactive). He holds<br /> Bachelor of Science degrees in Accounting and Business Finance from<br /> Central Washington University. The Company believes Mr. Burell’s<br /> qualifications to serve on the Board include his experience as an<br /> executive of a public life sciences company and knowledge of<br /> financial accounting in the medical technology field.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Martin<br /> Madden</i>, has been a director of the Company since February 6,<br /> 2017. Mr. Madden has held various positions at Johnson &<br /> Johnson and its affiliates from 1986 to January 2017, most recently<br /> as Vice President, Research & Development of DePuy Synthes, a<br /> Johnson & Johnson Company, from February 2016 to January 2017.<br /> Prior to that, from July 2015 to February 2016, Mr. Madden was the<br /> Vice President, New Product Development of Johnson & Johnson<br /> Medical Devices. From January 2012 to July 2015, Mr. Madden was the<br /> Vice President, Research & Development of Johnson &<br /> Johnson’s Global Surgery Group. During his thirty-year tenure with<br /> Johnson & Johnson’s Medical Device organization, he was an<br /> innovator and research leader for nearly every medical device<br /> business including Cardiology, Electrophysiology, Peripheral<br /> Vascular Surgery, General and Colorectal Surgery, Aesthetics,<br /> Orthopaedics, Sports Medicine, Spine, and Trauma. As an executive<br /> of Johnson & Johnson, Mr. Madden served on the management<br /> boards of Johnson & Johnson’s Global Surgery Group, Ethicon,<br /> Ethicon Endo-Surgery, DePuy-Synthes, and Cordis, with<br /> responsibility for research and development – inclusive of organic<br /> and licensed/acquired technology. He was also Chairman of J&J’s<br /> Medical Device Research Council, with responsibility for talent<br /> strategy and technology acceleration. Mr. Madden serves on the<br /> Board of Directors of Novocure (NASDAQ: NVCR), a global oncology<br /> company, and is an advisor to numerous medical device start-ups.<br /> Mr. Madden holds a MBA from Columbia University, a M.S. from<br /> Carnegie Mellon University in Mechanical Engineering, and a B.S.<br /> from the University of Dayton in Mechanical Engineering. The<br /> Company believes that Mr. Madden is qualified to serve as a member<br /> of the Board due to his extensive experience in research and<br /> development, portfolio planning, technology assessment and<br /> assimilation, and project management and budgeting.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Prattipati<br /> Laxminarain</i>, has been a director of the Company since December<br /> 6, 2017. From April 2006 through October 2017, Mr. Laxminarain<br /> served as Worldwide President at Codman Neuro, a global<br /> neurosurgery and neurovascular company that offers a portfolio of<br /> devices for hydrocephalus management, neuro intensive care and<br /> cranial surgery and other technologies, and which was part of DePuy<br /> Synthes Companies of Johnson & Johnson. Mr. Laxminarain is<br /> currently the CEO of Deinde Medical Corporation, and is a Board<br /> Member of Oculogica Inc., Millar Inc., and GT Medical Inc. He has a<br /> degree in Mechanical Engineering from Osmania University,<br /> Hyderabad, India and an MBA from Indian Institute of Management.<br /> The Company believes that Mr. Laxminarain is qualified as a Board<br /> member of the Company because of his extensive experience working<br /> with medical device companies and knowledge of the industries in<br /> which the Company intends to compete.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 47; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Aileen<br /> Stockburger</i> was appointed by the Board on March 26, 2020 to<br /> fill a vacancy on the Board and to serve as a Class II director of<br /> the Company, with a term commencing on April 1, 2020. Since<br /> February 2018, Ms. Stockburger has provided M&A consulting and<br /> advisory services through Aileen Stockburger LLC. Prior to that,<br /> from 1989 through January 2018, Ms. Stockburger held various<br /> positions in Johnson & Johnson, most recently as Vice<br /> President, Worldwide Business Development & Strategic Planning<br /> for the DePuy Synthes Group of Johnson & Johnson, and as a<br /> member of its Worldwide Board and Group Operating Committee, from<br /> 2010-2018. In that role, she oversaw the group’s merger and<br /> acquisition activities, including deal structuring, negotiations,<br /> contract design and review, and deal terms. Before joining Johnson<br /> & Johnson, Ms. Stockburger spent several years at<br /> PriceWaterhouseCoopers, and earned her CPA certification. She is<br /> also a Non-Executive Director of Next Science Limited (ASX: NXS), a<br /> medical technology company headquartered in Sydney, Australia, with<br /> a primary focus in the development and continued commercialization<br /> of its proprietary technology to reduce the impact of biofilm based<br /> infections in human health. She also serve on the Audit Committee<br /> and the People, Culture and Remuneration Committee of the Board of<br /> Directors of Next Science Limited. Ms. Stockburger received her MBA<br /> and BS from The Wharton School, University of Pennsylvania. The<br /> Company believes that Ms. Stockburger is qualified as a Board<br /> member of the Company because of her extensive experience in<br /> strategizing, managing and closing sizable, complex worldwide<br /> mergers and acquisitions, licensing agreements and divestitures, as<br /> well as her expertise in business development, strategic planning<br /> and finance.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Tal<br /> Wenderow</i> was appointed by the Board on July 29, 2020 to fill a<br /> vacancy on the Board and to serve as a Class I director of the<br /> Company, with a term commencing on August 1, 2020. Since September<br /> 2021, Mr. Wenderow serves as the Venture Partner at Genesis<br /> MedTech, a global medical device company. Previously, from February<br /> 2019, Mr. Wenderow served as the President and CEO of Vocalis<br /> Health Inc., an AI healthtech company pioneering the development of<br /> vocal biomarkers. Previously, Mr. Wenderow co-founded Corindus<br /> Vascular Robotics in 2002, which was a New York Stock<br /> Exchange-listed company upon its acquisition by Siemens<br /> Healthineers in 2019. Mr. Wenderow held various positions at<br /> Corindus from founder, Chief Executive Officer and director at<br /> inception, Executive Vice President Product & Business<br /> Development to his most recent role as Executive Vice President of<br /> International & Business Development. Mr. Wenderow received a<br /> B.Sc. in Mechanical Engineering at the Technion – Israel Institute<br /> of Technology, Haifa, Israel. The Company believes that Mr.<br /> Wenderow is qualified as a Board member of the Company because of<br /> his extensive knowledge of the medical robotics space with specific<br /> focus on interventional procedures, as well as his medical devices<br /> start up experience.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Executive Officers</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following<br /> are the name, age and other information for our executive officers,<br /> as of March 29, 2022. All company officers have been appointed to<br /> serve until their successors are elected and qualified or until<br /> their earlier resignation or removal. Information regarding Harel<br /> Gadot, our Chairman, President and Chief Executive Officer, is set<br /> forth above under “Board of Directors.”</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Name</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Age</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Position</b></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 25%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Harel<br /> Gadot</span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 2%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 5%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">50</span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 2%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 66%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">President,<br /> Chief Executive Officer and Chairman of the Board of<br /> Directors</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">David<br /> Ben Naim</span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">53</span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief<br /> Financial Officer</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Simon<br /> Sharon</span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">62</span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief<br /> Technology Officer and General Manager, Microbot Israel</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Eyal<br /> Morag</span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">57</span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief<br /> Medical Officer</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>David<br /> Ben Naim</i>, became the Company’s part-time Chief Financial<br /> Officer following the consummation of the Merger. Mr. Ben Naim is<br /> the general manager of DBN Finance Services Ltd., a company which<br /> provides outsourcing financial services to public and private<br /> companies, since 2014, including the Company. Through DBN Finance<br /> Services, Mr. Ben Naim has acted as the outsourced CFO for Emerald<br /> Medical Applications Corp. (OTC:MRLA), a digital health startup<br /> company engaged in the development, sale and service of imaging<br /> solutions, Tempramed Inc., a private medical device company,<br /> Vonetize PLC (TASE:VNTZ), an Israeli company that offers video on<br /> demand and over-the-top content services, Unet Credit Finance<br /> Services Ltd. (TASE:UNCR-M), Todos Medical Ltd. (OTC:TOMDF), an<br /> Israeli cancer in-vitro-diagnostic company engaging in the<br /> development of a series of blood tests for the early detection of a<br /> variety of cancers and 3DM Digital Manufacturing Ltd. (TASE:3DM),<br /> an Israeli company which operates in the field of plastic polymers<br /> industrial 3D printing. Prior to that, Mr. Ben Naim served as Chief<br /> Financial Officer for several companies in the biomedical and<br /> technology industries. From July 2012 to September 2014, Mr. Ben<br /> Naim served as Chief Financial Officer for Insuline Medical Ltd.<br /> (TASE: INSL), an Israel-based company focused on improving<br /> performance of insulin treatment methods. From 2008 until 2011, Mr.<br /> Ben Naim served as Chief Financial Officer of Crow Technologies<br /> 1977 Ltd. (OTC:CRWTF), a company that designs, develops,<br /> manufactures and sells a broad range of security and alarm systems.<br /> From 2007 to 2008, Mr. Ben Naim served as Chief Financial Officer<br /> of Ilex Medical Ltd. (TASE:ILX), a leading company in the medical<br /> diagnostics field. From 2003 to 2007, Mr. Ben Naim was the<br /> Corporate Controller of Tadiran Telecom Ltd. He started his career<br /> in 1998 at Deloitte & Touche where he left in 2003 as an Audit<br /> Senior Manager. Mr. Ben Naim holds a B.A. in social sciences from<br /> Open University, Israel, a CPA license from Ramat Gan College,<br /> Israel, and an M.B.A. from Ono Academic College, Israel.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 48; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Simon<br /> Sharon</i>, has served as the Company’s Chief Technology Officer<br /> since April 2018 and as the General Manager of Microbot Israel<br /> since April 2021. From August 2016 to March 2018, Mr. Sharon served<br /> as the Chief Technology Officer at MEDX Xelerator, an Israel-based<br /> medical device and digital health incubator. He is also a director<br /> of XACT Robotics Ltd., a private Israeli company developing a novel<br /> platform robotic technology for needle steering in minimally<br /> invasive interventional procedures. Mr. Harel Gadot, the Company’s<br /> President, CEO and Chairman, is the Chairman of each of XACT and<br /> MEDX Xelerator. Prior to this, Mr. Sharon held the position of<br /> Chief Operating Officer at Microbot Israel before it became a<br /> publicly traded company from February 2013 to August 2016. Prior to<br /> joining Microbot Israel, Mr. Sharon was the Vice President of<br /> Research & Development with IceCure Medical, a TASE traded<br /> company developing a portfolio of cryogenic ablation systems. Prior<br /> to IceCure, he held roles of increasing responsibility at Rockwell<br /> Automation–Anorad Israel Ltd., a leading linear motor-based,<br /> precision positioning equipment manufacturer. Prior to Rockwell,<br /> Mr. Sharon was the Research & Development Manager at<br /> Disc-O-Tech Medical Technologies Ltd., a private orthopedic venture<br /> that was acquired by Kyphon (currently part of Medtronic), and<br /> before this was the Research & Development Manager at CI<br /> Systems, a worldwide supplier of a wide range of electro-optical<br /> test and measurement equipment.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Eyal<br /> Morag</i>, has served as the Company’s Chief Medical Officer<br /> (“CMO”) since May 2020. As CMO, Dr. Morag leads the development and<br /> execution of the clinical strategy of the Company, including its<br /> current development of the SCS and LIBERTY products as well as its<br /> future pipeline. Dr. Morag is a member of the Company’s Scientific<br /> Advisory Board since November 1, 2017. Dr. Morag is certified by<br /> the American Board of Radiology, and from March 2017 through May<br /> 2020 has been the Chairman of Radiology at Assuta Ashdod Medical<br /> Center, Ashdod, Israel. Previously, from July 2014 through March<br /> 2017, he was the senior Radiologist at URG Teleradiology LLC, the<br /> largest provider of subspecialty radiology and teleradiology<br /> services in New Jersey. He is a graduate of Boston University<br /> School of Medicine and completed both his Radiology residency and<br /> Fellowship in Cardiovascular & Interventional Radiology at the<br /> Beth Israel Deaconess Medical Center & Harvard Medical School.<br /> Following his clinical training, Dr. Morag then joined a private<br /> practice in western Massachusetts, where he served as Chief of<br /> Radiology at Holyoke Medical Center for several years. He has also<br /> served as the Regional Radiology Director at Mercy Health Partners<br /> Hospitals in Toledo, Ohio, and was a member of the University<br /> Radiology Group where he headed the International Investment<br /> efforts for the Ventures division. Dr. Morag’s international<br /> experience developing and establishing radiology-related businesses<br /> includes teleradiology, interventional Radiology services, and<br /> free-standing imaging centers. During his fellowship, Dr. Morag<br /> co-founded InTek Technology, a medical device startup company.<br /> Later he founded Global Versa Radiology (“GVR”), an Israeli and<br /> U.S. based teleradiology company. GVR has established imaging<br /> centers in Russia and Ukraine and provided teleradiology services<br /> in countries outside the U.S. and Israel. Dr. Morag served as GVR’s<br /> Chief Medical Officer and Vice-President. He continues to be<br /> involved in several startup companies ranging from AI to medical<br /> devices. Dr. Morag is also a member of the Advisory Board of MEDX<br /> Xelerator, a medical device and digital health incubator, of which<br /> Mr. Gadot is Chairman.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Committees of the Board of Directors</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Presently,<br /> the Board has three standing committees — the Audit Committee, the<br /> Compensation and Stock Option Committee (the “Compensation<br /> Committee”), and the Corporate Governance and Nominating Committee<br /> (the “Corporate Governance Committee”). All members of the Audit<br /> Committee, the Compensation Committee, and the Corporate Governance<br /> Committee are, and are required by the charters of the respective<br /> committees to be, independent as determined under Nasdaq Listing<br /> rules.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Audit<br /> Committee</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Audit Committee is composed of Messrs. Burell, Madden and<br /> Bornstein. Each of the members of the Audit Committee is<br /> independent, and the Board has determined that Mr. Burell is an<br /> “audit committee financial expert,” as defined in SEC rules. The<br /> Audit Committee acts pursuant to a written charter which is<br /> available through our website at www.microbotmedical.com. The Audit<br /> Committee held five meetings during the fiscal year ended December<br /> 31, 2021 and acted by unanimous written consent one<br /> time.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> primary function of the Audit Committee is to assist the Board of<br /> Directors in fulfilling its oversight responsibilities. The Audit<br /> Committee does this primarily by reviewing the Company’s financial<br /> reports and other financial information as well as the Company’s<br /> systems of internal controls regarding finance, accounting, legal<br /> compliance, and ethics that management and the Board of Directors<br /> have established. The Audit Committee also assesses the Company’s<br /> auditing, accounting and financial processes more generally. The<br /> Audit Committee recommends to the Board of Directors the<br /> appointment of a firm of independent auditors to audit the<br /> financial statements of the Company and meets with such personnel<br /> of the Company to review the scope and the results of the annual<br /> audit, the amount of audit fees, the company’s internal accounting<br /> controls, the Company’s financial statements contained in this<br /> proxy statement, and other related matters.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 49; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Compensation<br /> Committee</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Compensation Committee is composed of Messrs. Madden (Chairman),<br /> Bornstein and Stockburger. Each of the members of the Compensation<br /> Committee is independent. The Compensation Committee acts pursuant<br /> to a written charter which is available through our website at<br /> www.microbotmedical.com. The Compensation Committee held four<br /> meetings during the fiscal year ended December 31, 2021 and acted<br /> by unanimous written consent two times.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Compensation Committee acts pursuant to a written charter. The<br /> Compensation Committee makes recommendations to the Board of<br /> Directors and management concerning salaries in general, determines<br /> executive compensation and approves incentive compensation for<br /> employees and consultants.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Corporate<br /> Governance Committee</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Corporate Governance Committee is composed of Messrs. Laxminarain,<br /> Burell and Wenderow. Each of the members of the Corporate<br /> Governance Committee is independent. The Corporate Governance<br /> Committee acts pursuant to a written charter which is available<br /> through our website at www.microbotmedical.com. The Corporate<br /> Governance Committee acted by unanimous written consent one time<br /> during the fiscal year ended December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Corporate Governance Committee oversees nominations to the Board<br /> and considers the experience, ability and character of potential<br /> nominees to serve as directors, as well as particular skills or<br /> knowledge that may be desirable in light of the Company’s position<br /> at any time. From time to time, the Corporate Governance Committee<br /> may engage the services of a paid search firm to help the Corporate<br /> Governance Committee identify potential nominees to the Board. The<br /> Corporate Governance Committee and Board seek to nominate and<br /> appoint candidates to the Board who have significant business<br /> experience, technical expertise or personal attributes, or a<br /> combination of these, sufficient to suggest, in the Board’s<br /> judgment, that the candidate would have the ability to help direct<br /> the affairs of the Company and enhance the Board as a whole. The<br /> Corporate Governance Committee may identify potential candidates<br /> through any reliable means available, including recommendations of<br /> past or current members of the Board from their knowledge of the<br /> industry and of the Company. The Corporate Governance Committee<br /> also considers past service on the Board or on the board of<br /> directors of other publicly traded or technology focused companies.<br /> The Corporate Governance Committee has not adopted a formulaic<br /> approach to evaluating potential nominees to the Board; it does not<br /> have a formal policy concerning diversity, for example. Rather, the<br /> Corporate Governance Committee weighs and considers the experience,<br /> expertise, intellect, and judgment of potential nominees<br /> irrespective of their race, gender, age, religion, or other<br /> personal characteristics. The Corporate Governance Committee may<br /> look for nominees that can bring new skill sets or diverse business<br /> perspectives. Potential candidates recommended by security holders<br /> will be considered as provided in the company’s “Policy Regarding<br /> Shareholder Candidates for Nomination as a Director,” which sets<br /> forth the procedures and conditions for such recommendations. This<br /> policy is available through our website at<br /> www.microbotmedical.com.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Director Oversight and Qualifications</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While<br /> management is responsible for the day-to-day management of the<br /> risks the company faces, the Board, as a whole and through its<br /> committees, has responsibility for the oversight of risk<br /> management. An important part of risk management is not only<br /> understanding the risks facing the company and what steps<br /> management is taking to manage those risks, but also understanding<br /> what level of risk is appropriate for the company. In support of<br /> this oversight function, the Board receives regular reports from<br /> our Chief Executive Officer and members of senior management on<br /> operational, financial, legal, and regulatory issues and risks. The<br /> Audit Committee additionally is charged under its charter with<br /> oversight of financial risk, including the company’s internal<br /> controls, and it receives regular reports from management, the<br /> company’s internal auditors and the company’s independent auditors.<br /> The chairman of the Board and independent members of the Board work<br /> together to provide strong, independent oversight of the company’s<br /> management and affairs through its standing committees and, when<br /> necessary, special meetings of directors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Code of Business Conduct and Ethics</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> have adopted a Code of Ethics and Conduct that applies to all of<br /> our directors, officers, employees, and consultants. A copy of our<br /> code of ethics is posted on our website at www.microbotmedical.com.<br /> We intend to disclose any substantive amendment or waivers to this<br /> code on our website. There were no substantive amendments or<br /> waivers to this code in 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 50; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Section 16(a) Reports</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section<br /> 16(a) of the Exchange Act requires our executive officers,<br /> directors, and persons who own more than 10% of a registered class<br /> of our equity securities, to file with the SEC reports of ownership<br /> of our securities and changes in reported ownership. Executive<br /> officers, directors and greater than 10% beneficial owners are<br /> required by SEC rules to furnish us with copies of all Section<br /> 16(a) reports they file. Based solely on a review of the copies of<br /> such forms furnished to us, or written representations from the<br /> reporting persons that no Form 5 was required, we believe that,<br /> during the fiscal year ended December 31, 2021, with the exception<br /> of one untimely Form 4 (detailing a single transaction) for each of<br /> Messrs. Bornstein, Burell, Madden, Laxminarain and Wenderow and Ms.<br /> Stockburger, all Section 16(a) filing requirements applicable to<br /> our officers, directors and greater than 10% beneficial owners have<br /> been met.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 11. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_020"/>Executive<br /> Compensation.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> following table sets forth information regarding each element of<br /> compensation that was paid or awarded to the named executive<br /> officers of the Company for the periods indicated.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Name and Principal Position</td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Year</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Salary ($)</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Bonus ($)</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Stock Awards ($)</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Option Awards ($) (1)</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Non-Equity Incentive Plan Compensation ($)</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> All Other Compensation ($)</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> <p style="margin-top: 0; margin-bottom: 0">Total</p> <p style="margin-top: 0; margin-bottom: 0">($)</p> </td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; font-weight: bold; text-align: left">Harel<br /> Gadot</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 5%; text-align: right">2021</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 5%; text-align: right">500,000</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 5%; text-align: right">300,000</td> <td style="width: 1%; text-align: left">(2)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 5%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 5%; text-align: right">959,618</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 5%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 5%; text-align: right">13,800</td> <td style="width: 1%; text-align: left">(3)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 5%; text-align: right">1,555,800</td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">CEO, President & Chairman</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2020</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">450,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">270,000</td> <td style="text-align: left">(4)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,622,446</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">13,800</td> <td style="text-align: left">(3)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,356,246</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Simon Sharon(4)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2021</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">365,472</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">110,293</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">58,142</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">26,106</td> <td style="text-align: left">(5)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">560,013</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">CTO and General Manager</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2020</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">311,216</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">56,250</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">53,069</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">23,210</td> <td style="text-align: left">(5)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">443,745</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Eyal Morag(6)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2021</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">453,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">91,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">46,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">23,059</td> <td style="text-align: left">(5)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">613,059</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Chief Medical Officer</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2020</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">243,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">21,622</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">7,079</td> <td style="text-align: left">(5)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">271,701</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">David Ben Naim</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2021</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">81,754</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">81,754</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Chief Financial Officer</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2020</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">82,242</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">20,308</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">102,550</td> <td style="text-align: left"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Rule-Page --></p> <p><!-- Field: /Rule-Page --></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amounts<br /> shown do not reflect cash compensation actually received by the<br /> named executive officer. Instead, the amounts shown are the<br /> non-cash aggregate grant date fair values of stock option awards<br /> made during the periods presented as determined pursuant to ASC<br /> Topic 718 and excludes the effect of forfeiture assumptions. The<br /> assumptions used to calculate the fair value of stock option awards<br /> are set forth under Note 9 to the Consolidated Financial Statements<br /> of the Company included in this Annual Report on Form 10-K for the<br /> fiscal year ended December 31, 2021.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents<br /> Mr. Gadot’s bonus of $300,000 for the 2021 fiscal year, which<br /> amount was actually paid in 2022.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All<br /> Other Compensation includes Mr. Gadot’s monthly automobile<br /> allowance and tax gross-up.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents<br /> Mr. Gadot’s bonus of $270,000 for the 2020 fiscal year, which<br /> amount was actually paid in 2021.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.<br /> Sharon commenced employment in April 2018, and was promoted to<br /> General Manager of Microbot Israel in April 2021.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All<br /> Other Compensation includes the executive’s yearly automobile<br /> allowance.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dr.<br /> Morag commenced employment on May 1, 2020. Dr. Morag entered into<br /> an Employment Agreement with the Company as of February 18,<br /> 2020.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Outstanding<br /> Equity Awards at Fiscal Year-End</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> following table presents the outstanding equity awards held by each<br /> of the named executive officers as of the end of the fiscal year<br /> ended December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="12" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Option Awards</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Stock Awards</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Name</td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Number of<br />Securities<br />Underlying<br />Unexercised<br />Options<br />Exercisable</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Number of<br />Securities<br />Underlying<br />Unexercised<br />Options<br />Unexercisable</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Option Exercise Price</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Option Expiration Date</td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Number of<br />Shares<br />or Units of Stock That<br />Have<br />Not Vested</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Market value of Shares<br />of Units of Stock That Have<br />Not Vested</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Equity Incentive Plan Awards: Number<br />of Unearned Shares, Units or Other Rights That<br />Have Not Vested</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Equity Incentive Plan Awards: Market<br />or Payout Value of Unearned Shares, Units or Other Rights That<br />Have Not Vested</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 18%; text-align: left">Harel Gadot</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 8%; text-align: right">77,846</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 8%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 7%; text-align: right">4.20</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">1/01/2025</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">114,497</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">6,350</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">15.75</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right">9/14/2027</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">166,666</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.64</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right">2/25/2030</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> –</p> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">190,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">8.48</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right">02/01/2031</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Simon Sharon</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">10,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.00</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right">08/13/2028</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">10,981</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,189</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">5.95</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right">08/12/2029</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Eyal Morag</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">13,750</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">11,250</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">6.16</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right">7/14/2030</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">David Ben Naim</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">15.30</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right">12/28/2027</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 51; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Executive<br /> Employment Agreements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company entered into an employment agreement (the “Gadot<br /> Agreement”) with Harel Gadot on November 28, 2016, to serve as the<br /> Company’s Chairman of the Board of Directors and Chief Executive<br /> Officer, on an indefinite basis subject to the termination<br /> provisions described in the Agreement. The Gadot Agreement was<br /> amended most recently on January 26, 2022. Mr. Gadot’s annual base<br /> salary for 2021 was $500,000, and has been increased to $515,000<br /> for 2022. The salary is reviewed on an annual basis by the<br /> Compensation Committee of the Company to determine potential<br /> increases taking into account such performance metrics and criteria<br /> as established by Mr. Gadot and the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective<br /> as of January 1, 2020, Mr. Gadot shall also be entitled to receive<br /> a target annual cash bonus of up to a maximum amount of 60% of base<br /> salary, which maximum amount was paid for the 2021 fiscal<br /> year.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.<br /> Gadot shall be further entitled to a monthly automobile allowance<br /> and tax gross up on such allowance of $1,150, and shall be granted<br /> options to purchase shares of common stock of the Company<br /> representing 5% of the issued and outstanding shares of the<br /> Company, based on vesting and other terms to be determined by the<br /> Compensation Committee of the Board of Directors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> the event Mr. Gadot’s employment is terminated as a result of<br /> death, Mr. Gadot’s estate would be entitled to receive any earned<br /> annual salary, bonus, reimbursement of business expenses and<br /> accrued vacation, if any, that is unpaid up to the date of Mr.<br /> Gadot’s death.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> the event Mr. Gadot’s employment is terminated as a result of<br /> disability, Mr. Gadot would be entitled to receive any earned<br /> annual salary, bonus, reimbursement of business expenses and<br /> accrued vacation, if any, incurred up to the date of<br /> termination.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> the event Mr. Gadot’s employment is terminated by the Company for<br /> cause, Mr. Gadot would be entitled to receive any compensation then<br /> due and payable incurred up to the date of termination.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> the event Mr. Gadot’s employment is terminated by the Company<br /> without cause, he would be entitled to receive (i) any earned<br /> annual salary; (ii) 12 months’ pay and full benefits, (iii) a pro<br /> rata bonus equal to the maximum target bonus for that calendar<br /> year; (iv) the dollar value of unused and accrued vacation days;<br /> and (v) applicable premiums (inclusive of premiums for Mr. Gadot’s<br /> dependents) pursuant to the Consolidated Omnibus Budget<br /> Reconciliation Act of 1986, as amended, for twelve (12) months from<br /> the date of termination for any benefits plan sponsored by the<br /> Company. In addition, 100% of any unvested portion of his stock<br /> options shall immediately vest and become exercisable.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> agreement contains customary non-competition and non-solicitation<br /> provisions pursuant to which Mr. Gadot agrees not to compete and<br /> solicit with the Company. Mr. Gadot also agreed to customary terms<br /> regarding confidentiality and ownership of intellectual<br /> property.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>David<br /> Ben Naim Services Agreement</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> entered into a services agreement (the “Services Agreement”) with<br /> DBN Finance Services effective October 31, 2016, to provide<br /> outsourced CFO services. Pursuant to the terms of the Services<br /> Agreement, DBN Finance Services will provide its services<br /> exclusively through Mr. David Ben Naim, who will serve as the<br /> principal financial and accounting officer of Microbot Israel and<br /> the Company. Mr. Ben Naim’s engagement will continue on an<br /> indefinite basis subject to the termination provisions described in<br /> the Agreement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant<br /> to the Agreement, the Company shall pay the Service Provider a<br /> fixed fee of NIS 22,000, or the equivalent of approximately $7,097<br /> per month based on an exchange rate of $.32 for NIS1.0, plus VAT<br /> per month, and the Company shall reimburse DBN Finance Services for<br /> reasonable and customary out of pocket expenses incurred by it or<br /> Mr. Ben Naim connection with the performance of the duties under<br /> the Services Agreement. In addition, the Company shall maintain for<br /> the benefit of Mr. Ben Naim, a Directors and Officers insurance<br /> policy, according to the Company’s policy for other directors and<br /> officers of the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Both<br /> the Company and DBN Finance Services shall have the right to<br /> terminate the Agreement for any reason or without reason at any<br /> time by furnishing the other party with a 30-day notice of<br /> termination. The Company shall further be entitled to terminate the<br /> Services Agreement for “cause” without notice, in which case<br /> neither DBN Finance Services nor Mr. Ben Naim shall be entitled to<br /> any compensation due to such early termination.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 52; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">DBN<br /> Finance Services and Mr. Ben Naim agreed to customary provisions<br /> regarding confidentiality and intellectual property ownership. The<br /> Services Agreement also contains customary non-competition and<br /> non-solicitation provisions pursuant to which DBN Finance Services<br /> and Mr. Ben Naim agree not to compete and solicit with the Company<br /> during the term of the Agreement and for a period of twelve months<br /> following the termination of the Agreement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Simon<br /> Sharon Employment Agreement</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company entered into an employment agreement, dated as of March 31,<br /> 2018 and amended pursuant to a First Amendment to Employment<br /> Agreement dated as of April 19, 2021 (as so amended, the “Sharon<br /> Agreement”), with Mr. Sharon, to serve as the Company’s Chief<br /> Technology Officer and the General Manager of Microbot Israel, on<br /> an indefinite basis subject to the termination provisions described<br /> in the Sharon Agreement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> salary is reviewed on an annual basis by the Compensation Committee<br /> of the Company to determine potential increases taking into account<br /> such performance metrics and criteria as established by the<br /> Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant<br /> to the terms of the Sharon Agreement, Mr. Sharon will receive in<br /> 2022 a combined base salary and overtime payment of NIS72,000 per<br /> month. Mr. Sharon is also entitled to receive an annual cash bonus<br /> of up to 35% of the annual combined salary and overtime payment,<br /> based on certain performance factors established and assessed by<br /> the Compensation Committee of the Board of Directors of the<br /> Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.<br /> Sharon shall be further entitled to a monthly automobile allowance<br /> plus a tax gross up to cover taxes relating to the grant of such<br /> motor vehicle, and pursuant to the Sharon Agreement was initially<br /> granted options in 2018 to purchase 150,000 shares (pre-stock<br /> split) of common stock of the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant<br /> to the Sharon Agreement, the Company pays to (unless agreed<br /> otherwise by the parties) an insurance company or a pension fund,<br /> for Mr. Sharon, an amount equal to 8.33% of the base salary and<br /> overtime payments, which shall be allocated to a fund for severance<br /> pay, and an additional amount equal to 6.5% of the base salary and<br /> overtime payments, which shall be allocated to a provident fund or<br /> pension plan. The Company also pays an additional sum for<br /> disability insurance to insure Mr. Sharon for up to 75% of base<br /> salary and overtime payments, and 7.5% of each monthly payment to<br /> be allocated to an educational fund.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Either<br /> the Company or Mr. Sharon may terminate the Sharon Agreement<br /> without cause (as defined in the Sharon Agreement) by providing the<br /> other party with ninety days prior written notice.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company may terminate the Sharon Agreement for cause at any time by<br /> written notice without any advance notice.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Sharon Agreement contains customary non-competition and non-solicit<br /> provisions pursuant to which Mr. Sharon agrees not to compete and<br /> solicit with the Company. Mr. Sharon also agreed to customary terms<br /> regarding confidentiality and ownership of intellectual<br /> property.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Eyal<br /> Morag Employment Agreement</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> entered into an employment agreement (the “Morag Agreement”), as of<br /> February 18, 2020, with Dr. Morag, to serve as the Company’s Chief<br /> Medical Officer, on an indefinite basis subject to the termination<br /> provisions described in the Morag Agreement. The salary is reviewed<br /> on an annual basis by the Compensation Committee of the Company to<br /> determine potential increases taking into account such performance<br /> metrics and criteria as established by the Company. Pursuant to the<br /> terms of the Morag Agreement, Dr. Morag shall receive a base salary<br /> in 2022 of NIS64,000 per month plus Global Overtime (as defined in<br /> the Morag Agreement) of NIS16,000 per month.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dr.<br /> Morag shall also be entitled to receive a target annual cash bonus,<br /> based on certain milestones, of up to a maximum amount of 30% of<br /> his annual salary.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dr.<br /> Morag shall be further entitled to a monthly automobile allowance<br /> not to exceed NIS 4,800 per month plus expenses and applicable<br /> taxes, and shall be granted options to purchase 25,000 shares of<br /> common stock of the Company based on vesting and other terms set<br /> forth in the Morag Agreement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 53; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant<br /> to the Morag Agreement, the Company shall pay an amount equal to<br /> 8.33% of Dr. Morag’s salary to be allocated for severance pay, 6.5%<br /> of Dr. Morag’s salary to be allocated for pension savings and 7.5%<br /> to be allocated to an educational fund. The Company may have<br /> additional payment obligations for disability insurance as<br /> specified in the Morag Agreement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Either</span><br /> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the<br /> Company or Dr. Morag may terminate the Morag Agreement at its<br /> discretion at any time by providing the other party with six months<br /> prior written notice of termination (the “Advance Notice<br /> Period”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company may terminate the Morag Agreement “For Cause” (as defined<br /> in the Morag Agreement) at any time by written notice without the<br /> Advance Notice Period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">  </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Morag Agreement contains customary non-competition and non-solicit<br /> provisions pursuant to which Dr. Morag agrees not to compete and<br /> solicit with the Company. Dr. Morag also agreed to customary terms<br /> regarding confidentiality and ownership of intellectual<br /> property.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Indemnification<br /> Agreements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company generally enters into indemnification agreements with each<br /> of its directors and executive officers. Pursuant to the<br /> indemnification agreements, the Company has agreed to indemnify and<br /> hold harmless these current and former directors and officers to<br /> the fullest extent permitted by the Delaware General Corporation<br /> Law. The agreements generally cover expenses that a director or<br /> officer incurs or amounts that a director or officer becomes<br /> obligated to pay because of any proceeding to which he is made or<br /> threatened to be made a party or participant by reason of his<br /> service as a current or former director, officer, employee or agent<br /> of the Company, provided that he acted in good faith and in a<br /> manner he reasonably believed to be in or not opposed to the best<br /> interests of the Company. The agreements also provide for the<br /> advancement of expenses to the directors and officers subject to<br /> specified conditions. There are certain exceptions to the Company’s<br /> obligation to indemnify the directors and officers, and, with<br /> certain exceptions, with respect to proceedings that he<br /> initiates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Limits<br /> on Liability and Indemnification</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> provide directors and officers insurance for our current directors<br /> and officers.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our<br /> certificate of incorporation eliminate the personal liability of<br /> our directors to the fullest extent permitted by law. The<br /> certificate of incorporation further provide that the Company will<br /> indemnify its officers and directors to the fullest extent<br /> permitted by law. We believe that this indemnification covers at<br /> least negligence on the part of the indemnified parties. Insofar as<br /> indemnification for liabilities under the Securities Act may be<br /> permitted to our directors, officers, and controlling persons under<br /> the foregoing provisions or otherwise, we have been advised that in<br /> the opinion of the Securities and Exchange Commission such<br /> indemnification is against public policy as expressed in the<br /> Securities Act of 1933 and is therefore unenforceable.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Director<br /> Compensation</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company adopted in January 2021 an amended compensation package for<br /> the non-management members of its Board, pursuant to which each<br /> such Board member would receive for his or her services $35,000 per<br /> annum. Furthermore, each member of the Audit Committee of the Board<br /> receives an additional $10,000 per annum ($20,000 if Chairman),<br /> each member of the Compensation Committee of the Board receives an<br /> additional $7,500 per annum ($15,000 if Chairman) and each member<br /> of the Corporate Governance and Nominating Committee of the Board<br /> receives an additional $5,000 per annum ($10,000 if Chairman).<br /> Board members are also entitled to receive equity awards. Upon<br /> joining the Board, a member would receive an initial grant of<br /> $190,000 of stock options (calculated as the product of the<br /> exercise price on the date of grant multiplied by the number of<br /> shares underlying the stock option award required to equal<br /> $190,000), with an additional grant of stock options each year<br /> thereafter, to purchase such number of shares of the Company’s<br /> common stock equal to $95,000, computed on a similar<br /> basis.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 54; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> following table summarizes cash and equity-based compensation<br /> information for our outside directors, for the year ended December<br /> 31, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Name</td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Fees earned or paid in cash</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Stock Awards</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Option Awards (1)</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Non-Equity Incentive Plan Compensation</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Nonqualified Deferred Compensation Earnings</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> All Other Compensation</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Total</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 23%; text-align: left">Yoseph Bornstein</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 7%; text-align: right">52,500</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 7%; text-align: right">12,767</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 7%; text-align: right">65,267</td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Scott Burell</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">60,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">12,767</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">72,767</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Martin Madden</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">60,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">12,767</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">72,767</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prattipati Laxminarain</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">45,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">14,233</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">59,233</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Aileen Stockburger</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">42,500</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">18,788</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">61,288</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tal Wenderow</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">40,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">19,412</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">59,412</td> <td style="text-align: left"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Rule-Page --></p> <p><!-- Field: /Rule-Page --></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amounts<br /> shown do not reflect cash compensation actually received by the<br /> director. Instead, the amounts shown are the non-cash aggregate<br /> grant date fair values of stock option awards made during the<br /> period presented as determined pursuant to U.S. GAAP. The<br /> assumptions used to calculate the fair value of stock option awards<br /> are described in Note 9 to the Consolidated Financial Statements of<br /> the Company included in this Annual Report on Form 10-K for the<br /> fiscal year ended December 31, 2021.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.<br /> Gadot received compensation for his services to the Company as set<br /> forth under the summary compensation table above.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 12. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_021"/>Security Ownership of Certain<br /> Beneficial Owners and Management and Related Stockholder<br /> Matters.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> following table shows the number of shares of our common stock<br /> beneficially owned, as of March 29, 2022, by (i) each of our<br /> directors and director nominees, (ii) each of our named executive<br /> officers, (iii) all of our current directors and executive officers<br /> as a group, and (iv) all those known by us to be to a beneficial<br /> owner of more than 5% of the Company’s common stock. In general,<br /> “beneficial ownership” refers to shares that an individual or<br /> entity has the power to vote or dispose of, and any rights to<br /> acquire common stock that are currently exercisable or will become<br /> exercisable within 60 days of March 29, 2022. We calculated<br /> percentage ownership in accordance with the rules of the SEC. The<br /> percentage of common stock beneficially owned is based on 7,108,133<br /> shares outstanding as of March 29, 2022. In addition, shares<br /> issuable pursuant to options or other convertible securities that<br /> may be acquired within 60 days of March 29, 2022 are deemed to be<br /> issued and outstanding and have been treated as outstanding in<br /> calculating and determining the beneficial ownership and percentage<br /> ownership of those persons possessing those securities, but not for<br /> any other persons.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This<br /> table is based on information supplied by each director, officer<br /> and principal stockholder of the Company. Except as indicated in<br /> footnotes to this table, the Company believes that the stockholders<br /> named in this table have sole voting and investment power with<br /> respect to all shares of Common Stock shown to be beneficially<br /> owned by them, based on information provided by such stockholders.<br /> Unless otherwise indicated, the address for each director,<br /> executive officer and 5% or greater stockholders of the Company<br /> listed is: c/o Microbot Medical Inc., 25 Recreation Park Drive,<br /> Unit 108, Hingham, MA 02043.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 55; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Beneficial Owner</td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Number of Shares Beneficially Owned</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Percentage of Common Stock Beneficially Owned</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chasing<br /> Value Asset Management Inc.<sup>(1)</sup></span></td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 16%; text-align: right">610,657</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 16%; text-align: right">8.59</td> <td style="width: 1%; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Harel<br /> Gadot<sup>(2)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">614,606</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">8.10</td> <td style="text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yoseph<br /> Bornstein<sup>(3)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">255,169</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3.58</td> <td style="text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott<br /> Burell<sup>(4)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">13,141</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Martin<br /> Madden<sup>(4)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">13,141</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">David<br /> Ben Naim<sup>(4)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prattipati<br /> Laxminarain<sup>(4)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">13,141</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Aileen<br /> Stockburger<sup>(4)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">6,963</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Simon<br /> Sharon<sup>(4)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">23,107</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Eyal<br /> Morag<sup>(4)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,625</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tal<br /> Wenderow<sup>(4)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">6,455</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All<br /> current directors and executive officers as a group (10<br /> persons)<sup>(5)</sup></span></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">966,348</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">12.56</td> <td style="text-align: left">%</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">  </p> <p><!-- Field: Rule-Page --></p> <p><!-- Field: /Rule-Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based<br /> on a Schedule 13G filed by the reporting person on January 20,<br /> 2021, the reporting person has sole voting power over 207,000<br /> shares and sole dispositive power over 610,657 shares. Sheldon D.<br /> Liber is the Chief Executive Officer of the reporting person. The<br /> address of the principal business office of the reporting person is<br /> 2444 Wilshire Boulevard, Suite 300, Santa Monica, California<br /> 90403.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes<br /> (i) 136,847 shares of our common stock owned by MEDX Ventures Group<br /> LLC, (ii) 77,846 shares of our common stock issuable upon the<br /> exercise of options granted to MEDX Ventures Group LLC, and (iii)<br /> 399,913 shares of our common stock issuable upon the exercise of<br /> options granted to Mr. Gadot. Mr. Gadot is the Chief Executive<br /> Officer, Company Group Chairman and majority equity owner of MEDX<br /> Venture Group, LLC and thus may be deemed to share voting and<br /> investment power over the shares and options beneficially owned by<br /> this entity.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents<br /> (i) 242,028 shares of our common stock owned by LSA – Life Science<br /> Accelerator Ltd. and (ii) 13,141 shares of our common stock<br /> issuable to Mr. Bornstein upon exercise of options. Based on<br /> representations and other information made or provided to the<br /> Company by Mr. Bornstein, Mr. Bornstein is the CEO and Director of<br /> LSA – Life Science Accelerator Ltd. and of Shizim Ltd., and Mr.<br /> Bornstein is the majority equity owner of Shizim Ltd. Shizim Ltd.<br /> is the majority equity owner of LSA – Life Science Accelerator Ltd.<br /> Accordingly, Mr. Bornstein may be deemed to share voting and<br /> investment power over the shares beneficially owned by these<br /> entities and has an address of 16 Irus Street, Rosh-Ha’Ayin Israel<br /> 4858022.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents<br /> options to acquire shares of our common stock.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes<br /> shares of our common stock issuable upon the exercise of options as<br /> set forth in footnotes (2), (3) and (4).</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 13. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_022"/>Certain Relationships and Related<br /> Transactions, and Director Independence.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Related<br /> parties can include any of our directors or executive officers,<br /> certain of our stockholders and their immediate family members.<br /> Each year, we prepare and require our directors and executive<br /> officers to complete Director and Officer Questionnaires<br /> identifying any transactions with us in which the officer or<br /> director or their family members have an interest. This helps us<br /> identify potential conflicts of interest. A conflict of interest<br /> occurs when an individual’s private interest interferes, or appears<br /> to interfere, in any way with the interests of the company as a<br /> whole. Our code of ethics requires all directors, officers and<br /> employees who may have a potential or apparent conflict of interest<br /> to immediately notify our general counsel, who serves as our<br /> compliance officer. In addition, the Corporate Governance Committee<br /> is responsible for considering and reporting to the Board any<br /> questions of possible conflicts of interest of Board members. Our<br /> code of ethics further requires pre-clearance before any employee,<br /> officer or director engages in any personal or business activity<br /> that may raise concerns about conflict, potential conflict or<br /> apparent conflict of interest. Copies of our code of ethics and the<br /> Corporate Governance Committee charter are posted on the corporate<br /> governance section of our website at<br /> www.microbotmedical.com.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There<br /> have been no related party transactions or any other transactions<br /> or relationships required to be disclosed pursuant to Item 404 of<br /> Regulation S-K.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Director Independence</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NASDAQ’s<br /> listing standards and the Company’s Corporate Governance Guidelines<br /> require that the Company’s Board of Directors consist of a majority<br /> of independent directors, as determined under the applicable NASDAQ<br /> listing rules.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> independent members of our Board are Messrs. Bornstein, Burell,<br /> Madden, Laxminarain and Wenderow, and Ms. Stockburger.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 56; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 14. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_023"/>Principal Accountant Fees and<br /> Services.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Audit and Tax Fees</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Board, upon the recommendation of the Audit Committee, has selected<br /> the independent accounting firm of Brightman Almagor Zohar &<br /> Co., a Member of Deloitte Touche Tohmatsu Limited, to audit the<br /> accounts of the Company for the year ending December 31,<br /> 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Audit Committee considered the tax compliance services provided by<br /> Brightman Almagor Zohar & Co. and Deloitte Israel & Co.,<br /> concluded that provision of such services is compatible with<br /> maintaining the independence of the independent accountants, and<br /> approved the provision by Brightman Almagor Zohar & Co. of tax<br /> compliance services with respect to the year ending December 31,<br /> 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Audit Committee received the following information concerning the<br /> fees of the independent accountants for the years ended December<br /> 31, 2021 and 2020, has considered whether the provision of these<br /> services is compatible with independence of the independent<br /> accountants, and concluded that it is:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> <p style="margin-top: 0; margin-bottom: 0">For the Years Ended</p> <p style="margin-top: 0; margin-bottom: 0">December 31,</p> </td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2021</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2020</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Audit Fees (1)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 16%; text-align: right">85,000</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 16%; text-align: right">70,000</td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tax Fees</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">10,250</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9,500</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">All Other Fees (2)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">12,500</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,000</td> <td style="text-align: left"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Rule-Page --></p> <p><!-- Field: /Rule-Page --></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit<br /> fees represents fees for the audit of our annual consolidated<br /> financial statements and reviews of the interim consolidated<br /> financial statements, and review of audit-related SEC<br /> filings.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes<br /> fees related to issuing a comfort letter and Auditor<br /> consents.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit<br /> and tax fees include administrative overhead charges and<br /> reimbursement for out-of-pocket expenses.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Pre-Approval Policies and Procedures</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Audit Committee has adopted policies and procedures for<br /> pre-approving all services (audit and non-audit) performed by our<br /> independent auditors. In accordance with such policies and<br /> procedures, the Audit Committee is required to pre-approve all<br /> audit and non-audit services to be performed by the independent<br /> auditors in order to assure that the provision of such services is<br /> in accordance with the rules and regulations of the SEC and does<br /> not impair the auditors’ independence. Under the policy,<br /> pre-approval is generally provided up to one year and any<br /> pre-approval is detailed as to the particular service or category<br /> of services and is subject to a specific budget. In addition, the<br /> Audit Committee may pre-approve additional services on a<br /> case-by-case basis.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_a_024"><br /> </span>PART IV</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item<br /> 15. <span style="text-decoration: underline"><span id="FORM10-K_HTM_a_025"/>Exhibits and Financial Statement<br /> Schedules</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)<br /> The following documents are filed as part of this Annual Report on<br /> Form 10-K:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)<br /> Financial Statements:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> financial statements are filed as part of this Annual Report on<br /> Form 10-K commencing on page F-1 and are hereby incorporated by<br /> reference.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)<br /> Financial Statement Schedules:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> financial statement schedules are omitted as they are either not<br /> applicable or the information required is presented in the<br /> financial statements and notes thereto.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)<br /> Exhibits:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> documents set forth below are filed herewith or incorporated by<br /> reference to the location indicated.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 57; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 0.75in; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Exhibit<br /> Number</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.1in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Description<br /> of Document</b></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Agreement and Plan of Merger and<br /> Reorganization, dated as of August 15, 2016, by and among<br /> StemCells, Inc., C&RD Israel Ltd. and Microbot Medical Ltd.<br /> (incorporated by reference to the Company’s Current Report on Form<br /> 8-K filed on August 15, 2016).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Restated Certificate of Incorporation<br /> of the Company (incorporated by reference to the Company’s Annual<br /> Report on Form 10-K for the fiscal year ended December 31, 2006 and<br /> filed on March 15, 2007).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certificate of Amendment to the<br /> Restated Certificate of Incorporation of the Company (incorporated<br /> by reference to the Company’s Current Report on Form 8-K filed on<br /> November 29, 2016).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.3</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certificate of Amendment to the<br /> Restated Certificate of Incorporation (incorporated by reference to<br /> the Company’s Current Report on Form 8-K filed on September 4,<br /> 2018).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.4</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amended and Restated By-Laws of the<br /> Company (incorporated by reference to the Company’s Current Report<br /> on Form 8-K filed on May 3, 2016).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.5</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certificate of Elimination<br /> (incorporated by reference to the Company’s Current Report on Form<br /> 8-K filed on December 12, 2018).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.6</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certificate of Amendment to the<br /> Restated Certificate of Incorporation (incorporated by reference to<br /> the Company’s Current Report on Form 8-K filed on September 11,<br /> 2019).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.7</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amendment to Section 5 of the Amended<br /> and Restated By-Laws of the Company (incorporated by reference to<br /> the Company’s Current Report on Form 8-K filed on May 3,<br /> 2021).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Series A Warrant<br /> (incorporated by reference to the Registrant’s Current Report on<br /> Form 8-K filed on December 16, 2016).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Series B Warrant<br /> (incorporated by reference to the Company’s Current Report on Form<br /> 8-K filed on December 16, 2016).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Wainwright Warrant<br /> (incorporated by reference to the Registrant’s Current Report on<br /> Form 8-K filed on January 16, 2019)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.4</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Wainwright Warrant<br /> (incorporated by reference to the Registrant’s Current Report on<br /> Form 8-K filed on January 17, 2019).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.5</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Warrant (incorporated by<br /> reference to the Registrant’s Current Report on Form 8-K filed on<br /> January 25, 2019).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.6</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Warrant (incorporated by<br /> reference to the Registrant’s Current Report on Form 8-K filed on<br /> December 27, 2019).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.7</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Wainwright Warrants<br /> (incorporated by reference to the Registrant’s Current Report on<br /> Form 8-K filed on January 25, 2019).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.8</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Warrant (incorporated by<br /> reference to the Registrant’s Current Report on Form 8-K filed on<br /> December 30, 2019).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.9</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Warrant (incorporated by<br /> reference to the Registrant’s Current Report on Form 8-K filed on<br /> December 31, 2019).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.10</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description of the Company’s<br /> Securities (incorporated by reference to the Registrant’s Annual<br /> Report on Form 10-K for the fiscal year ended December 31,<br /> 2019).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Indemnification Agreement,<br /> between the Company and each of its Directors and Officers<br /> (incorporated by reference to the Company’s Current Report on Form<br /> 8-K filed on November 29, 2016).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment Agreement with Harel Gadot<br /> (incorporated by reference to the Company’s Current Report on Form<br /> 8-K filed on November 29, 2016).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Services Agreement with DBN Finance<br /> Services Ltd. (incorporated by reference to the Company’s Current<br /> Report on Form 8-K filed on November 29, 2016).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">License Agreement, dated June 20,<br /> 2012, by and between Technion Research and Development Foundation,<br /> and Microbot Medical Ltd. (incorporated by reference to the<br /> Company’s Annual Report on Form 10-K for the fiscal year ended<br /> December 31, 2016 and filed on March 21, 2017).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Stock Option Agreement under<br /> the Microbot Medical Inc. 2017 Equity Incentive Plan (incorporated<br /> by reference to the Company’s Quarterly Report on Form 10-Q for the<br /> Quarter ended September 30, 2017, filed on November 14,<br /> 2017).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Agreement, dated January 4, 2018, by<br /> and between CardioSert Ltd. and Microbot Medical Ltd. (incorporated<br /> by reference to the Company’s Current Report on Form 8-K filed on<br /> January 8, 2018).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment Agreement with Dr. Eyal<br /> Morag (incorporated by reference to the Registrant’s Annual Report<br /> on Form 10-K for the fiscal year ended December 31, 2019 filed on<br /> April 14, 2020).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.8*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot Medical Inc. 2017 Equity<br /> Incentive Plan (incorporated by reference to Exhibit A of the<br /> Company’s Definitive Proxy Statement on Schedule 14A filed on<br /> August 11, 2017).</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 58; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; width: 0.75in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.9*</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.1in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot Medical Inc. 2020 Omnibus<br /> Performance Award Plan (incorporated by reference to Exhibit A of<br /> the Company’s definitive Proxy Statement on Schedule 14A filed on<br /> July 31, 2020)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.10*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Restricted Stock Unit Award<br /> Agreement under the Microbot Medical Inc. 2020 Omnibus Performance<br /> Award Plan (incorporated by reference to Exhibit 4.2 of the<br /> registration Statement on Form S-8 of the Company filed on November<br /> 25, 2020)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.11*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of NQO Award Agreement under the<br /> Microbot Medical Ltd. 2020 Omnibus Performance Award Plan<br /> (incorporated by reference to Exhibit 4.3 of the registration<br /> Statement on Form S-8 of the Company filed on November 25,<br /> 2020)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.12*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Restricted Stock Award<br /> Agreement under the Microbot Medical Ltd. 2020 Omnibus Performance<br /> Award Plan (incorporated by reference to Exhibit 4.4 of the<br /> registration Statement on Form S-8 of the Company filed on November<br /> 25, 2020)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.13*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of SAR Award Agreement under the<br /> Microbot Medical Ltd. 2020 Omnibus Performance Award Plan<br /> (incorporated by reference to Exhibit 4.5 of the registration<br /> Statement on Form S-8 of the Company filed on November 25,<br /> 2020)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.14*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of ISO Award Agreement under the<br /> Microbot Medical Ltd. 2020 Omnibus Performance Award Plan<br /> (incorporated by reference to Exhibit 4.6 of the registration<br /> Statement on Form S-8 of the Company filed on November 25,<br /> 2020)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.15*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment Agreement, as of March 31,<br /> 2018, with Simon Sharon (incorporated by reference to Exhibit 10.1<br /> of the Company’s Form 8-K filed on April 7, 2021)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.16*</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">First Amendment to Employment<br /> Agreement, dated as of April 19, 2021, with Simon Sharon<br /> (incorporated by reference to Exhibit 10.1 of the Company’s Form<br /> 8-K filed on April 22, 2021)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.17</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At the Market Offering Agreement,<br /> dated June 10, 2021, by and between Microbot Medical Inc. and H.C.<br /> Wainwright & Co., LLC (incorporated by reference to Exhibit<br /> 10.1 of the Company’s Form 8-K filed on June 10,<br /> 2021)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.18**</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Strategic Collaboration Agreement for<br /> Technology Co-Development with Stryker Corporation, acting through<br /> its Neurovascular Division (incorporated by reference to Exhibit<br /> 10.1 of the Company’s Form 8-K filed on December 27,<br /> 2021)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">21.1</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subsidiaries of the Company<br /> (incorporated by reference to the Company’s Annual Report on Form<br /> 10-K for the fiscal year ended December 31, 2016 and filed on March<br /> 21, 2017).</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br /> Consent of Independent Registered Public Accounting<br /> Firm</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">31.1</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br /> Certification Pursuant to Securities Exchange Act Rule 13(a)-14(a),<br /> as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of<br /> 2002 (Harel Gadot, Chief Executive Officer)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">31.2</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br /> Certification Pursuant to Securities Exchange Act Rule 13(a)-14(a),<br /> as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of<br /> 2002 (David Ben Naim, Chief Financial Officer)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">32.1</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br /> Certification Pursuant to 18 U.S.C. Section 1350, As Adopted<br /> Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Harel<br /> Gadot, Chief Executive Officer)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">32.2</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br /> Certification Pursuant to 18 U.S.C. Section 1350, As Adopted<br /> Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (David<br /> Ben Naim, Chief Financial Officer)</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.INS</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline<br /> XBRL Instance – The instance document does not appear in the<br /> Interactive Data File because its XBRL tags are embedded within the<br /> Inline XBRL document.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.SCH</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline<br /> XBRL Taxonomy Extension Schema.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.CAL</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline<br /> XBRL Taxonomy Extension Calculation.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.DEF</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline<br /> XBRL Taxonomy Extension Definition.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.LAB</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline<br /> XBRL Taxonomy Extension Labels.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.PRE</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline<br /> XBRL Taxonomy Extension Presentation.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">104</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cover<br /> Page Interactive Data File (formatted as Inline XBRL and contained<br /> in Exhibit 101)</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Rule-Page --></p> <p><!-- Field: /Rule-Page --></p> <table cellpadding="0" cellspacing="0" border="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicates<br /> Management contract or compensatory plan or arrangement</span></td> </tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">**</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain<br /> identified information has been excluded from this exhibit because<br /> it is both (i) not material and (ii) would be competitively harmful<br /> if publicly disclosed.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 59; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>SIGNATURES</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant<br /> to the requirements of Section 13 or 15(d) of the Securities<br /> Exchange Act of 1934, the registrant has duly caused this report to<br /> be signed on its behalf by the undersigned, thereunto duly<br /> authorized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>MICROBOT<br /> MEDICAL INC.</b></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 50%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 50%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/<br /> Harel Gadot</i></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Harel<br /> Gadot</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>President,<br /> Chief Executive Officer and Chairman</i></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:<br /> March 31, 2022</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant<br /> to the requirements of the Securities Exchange Act of 1934, this<br /> report has been signed below by the following persons on behalf of<br /> the registrant and in the capacities and on the dates<br /> indicated.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 30%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Signature</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 46%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Title</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 20%; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Date</b></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/<br /> Harel Gadot</i></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman,<br /> President and Chief Executive Officer</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March<br /> 31, 2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Harel<br /> Gadot</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal<br /> Executive Officer)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/<br /> David Ben Naim</i></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief<br /> Financial Officer</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March<br /> 31, 2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>David<br /> Ben Naim</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal<br /> Financial and Accounting Officer)</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/<br /> Yoseph Bornstein</i></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March<br /> 31, 2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Yoseph<br /> Bornstein</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/<br /> Prattipati Laxminarain</i></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March<br /> 31, 2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Prattipati<br /> Laxminarain</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/<br /> Scott Burell</i></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March<br /> 31, 2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Scott<br /> Burell</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/<br /> Martin Madden</i></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March<br /> 31, 2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Martin<br /> Madden</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> /s/<br /> Aileen Stockburger</i></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March<br /> 31, 2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Aileen<br /> Stockburger</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/<br /> Tal Wenderow</i></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March<br /> 31, 2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Tal<br /> Wenderow</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 60; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>MICROBOT<br /> MEDICAL INC.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>INDEX<br /> TO FINANCIAL STATEMENTS</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 61; Options: NewSection; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img src="https://content.edgar-online.com/edgar_conv_img/2022/03/31/0001493152-22-008344_form10-k_001.jpg" alt="" style="height: 53px; width: 239px"/></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_f_001"><br /> </span>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING<br /> FIRM</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>To<br /> the Board of Directors and Shareholders of Microbot Medical<br /> Inc.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Opinion<br /> on the Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> have audited the accompanying consolidated balance sheets of<br /> Microbot Medical Inc. and its subsidiary (the “Company”) as of<br /> December 31, 2021 and 2020 and the related consolidated statements<br /> of comprehensive loss, shareholders’ equity and cash flows, for<br /> each of the two years in the period ended December 31, 2021, and<br /> the related notes (collectively referred to as the “financial<br /> statements”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In<br /> our opinion, the financial statements present fairly, in all<br /> material respects, the financial position of the Company as of<br /> December 31, 2021 and 2020, and the results of its operations and<br /> its cash flows for each of the two years in the period ended<br /> December 31, 2021, in conformity with accounting principles<br /> generally accepted in the United States of America.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Basis<br /> for Opinion</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These<br /> consolidated financial statements are the responsibility of the<br /> Company’s management. Our responsibility is to express an opinion<br /> on the Company’s financial statements based on our audits. We are a<br /> public accounting firm registered with the Public Company<br /> Accounting Oversight Board (United States) (“PCAOB”) and are<br /> required to be independent with respect to the Company in<br /> accordance with the U.S. federal securities laws and the applicable<br /> rules and regulations of the Securities and Exchange Commission and<br /> the PCAOB.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> conducted our audits in accordance with the standards of the PCAOB.<br /> Those standards require that we plan and perform the audit to<br /> obtain reasonable assurance about whether the financial statements<br /> are free of material misstatement, whether due to error or fraud.<br /> The Company is not required to have, nor were we engaged to<br /> perform, an audit of its internal control over financial reporting.<br /> As part of our audits, we are required to obtain an understanding<br /> of internal control over financial reporting but not for the<br /> purpose of expressing an opinion on the effectiveness of the<br /> Company’s internal control over financial reporting. Accordingly,<br /> we express no such opinion.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our<br /> audits included performing procedures to assess the risks of<br /> material misstatement of the financial statements, whether due to<br /> error or fraud, and performing procedures that respond to those<br /> risks. Such procedures included examining, on a test basis,<br /> evidence regarding the amounts and disclosures in the financial<br /> statements. Our audits also included evaluating the accounting<br /> principles used and significant estimates made by management, as<br /> well as evaluating the overall presentation of the financial<br /> statements. We believe that our audits provide a reasonable basis<br /> for our opinion.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Critical<br /> Audit Matter</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> critical audit matter communicated below is a matter arising from<br /> the current-period audit of the financial statements that was<br /> communicated or required to be communicated to the audit committee<br /> and that (1) relates to accounts or disclosures that are material<br /> to the financial statements and (2) involved our especially<br /> challenging, subjective, or complex judgments. The communication of<br /> critical audit matters does not alter in any way our opinion on the<br /> financial statements, taken as a whole, and we are not, by<br /> communicating the critical audit matter below, providing a separate<br /> opinion on the critical audit matter or on the accounts or<br /> disclosures to which it relates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p><!-- Field: Page; Sequence: 62; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img src="https://content.edgar-online.com/edgar_conv_img/2022/03/31/0001493152-22-008344_form10-k_003.jpg" alt="" style="height: 53px; width: 240px"/></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br /> Commitments and Contingencies: Litigation — Refer to Note 2P and 8<br /> to the financial statements</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><br />  </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Critical<br /> Audit Matter Description</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company is involved in a litigation as the defendant resulting from<br /> the 2017 financing Litigation from third parties may result in a<br /> substantial loss. An estimated loss from a loss contingency is<br /> accrued by a charge to expenses or shareholders’ equity if it is<br /> probable that a liability has been incurred and the amount of the<br /> loss can be reasonably estimated.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company concluded that the loss from the case is not probable and<br /> it cannot be reasonably estimable at this stage and no provision<br /> was recorded as of December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> determination of litigation contingency accruals is subject to<br /> significant management judgement in assessing the likelihood of a<br /> loss being incurred and when determining whether a reasonable<br /> estimate of the loss or range of loss can be made.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Given<br /> the inherent uncertainty of the outcome of identified litigation,<br /> auditing the valuation assertion of litigation contingency required<br /> a high degree of auditor judgment and an increased extent of effort<br /> when performing audit procedures to evaluate management’s<br /> assessment on the likelihood and magnitude of the contingent loss<br /> and whether this litigation is reasonably estimable as of December<br /> 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>How<br /> the Critical Audit Matter Was Addressed in the Audit</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our<br /> audit procedures related to the potential loss contingency<br /> liability and disclosure of the litigation included the following,<br /> among others:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> made inquiries with management to obtain an understanding of<br /> litigation matter and status that the Company is currently<br /> undergoing.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> obtained legal letters from the external legal counsel.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> inquired of the external and internal legal counsels to determine<br /> the status of the case and to understand the basis for management’s<br /> conclusion that the loss from the case is not probable and it<br /> cannot be reasonably estimable at this stage.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> evaluated the assumptions used by management to estimate the<br /> litigation contingency likelihood and magnitude, including<br /> corroborating these assumptions with internal and external legal<br /> counsel.</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> evaluated the Company’s litigation contingencies disclosure for<br /> consistency with our evidence obtained on the litigation<br /> matter.</span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <i>/s/ Brightman Almagor Zohar & Co.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="FORM10-K_HTM_xdx_909_edei--AuditorName_c20210101__20211231_z450wg62gJBf"><br /> Brightman Almagor Zohar & Co</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certified<br /> Public Accountants</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A<br /> firm in the Deloitte Global Network</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="FORM10-K_HTM_xdx_900_edei--AuditorLocation_c20210101__20211231_zj31DaYGvcH3"><br /> Tel Aviv, Israel</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March<br /> 31, 2022</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We<br /> have served as the Company’s auditor since 2013</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img src="https://content.edgar-online.com/edgar_conv_img/2022/03/31/0001493152-22-008344_form10-k_002.jpg" alt="" style="height: 147px; width: 500px"/></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 63; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> MICROBOT MEDICAL INC.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> <span id="FORM10-K_HTM_f_002"/>Consolidated Balance<br /> Sheets</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.<br /> dollars in thousands</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Except<br /> share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" id="FORM10-K_HTM_xdx_307_111_pn3n3_zFkcAlCyGiM2" summary="xdx: Statement - Consolidated Balance Sheets" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"> <b>Notes</b></td> <td style="padding-bottom: 1.5pt"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="FORM10-K_HTM_xdx_493_20211231_zW30aucaayzb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2021</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="FORM10-K_HTM_xdx_498_20201231_zyXS0vTAjSP2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2020</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> As of December 31,</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"> <b>Notes</b></td> <td style="padding-bottom: 1.5pt"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2021</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2020</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40E_eus-gaap--AssetsAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"><b>ASSETS</b></td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_402_eus-gaap--AssetsCurrentAbstract_i01B" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Current assets:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40E_eus-gaap--CashAndCashEquivalentsAtCarryingValue_i02I_pn3n3_maACzTlC_zPQMK6QWglxg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; width: 50%; text-align: left">Cash<br /> and cash equivalents</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: center"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">13,493</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">19,650</td> <td style="width: 1%; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_407_eus-gaap--MarketableSecuritiesCurrent_i02I_pn3n3_maACzTlC_z7GTbMM796S5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Marketable<br /> securities</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,999</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">4,998</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40C_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_i02I_pn3n3_maACzTlC_zUiWkNKrssG2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Restricted<br /> cash</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">87</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">84</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_406_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_i02I_pn3n3_maACzTlC_zDLIFTNyVTL9" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"> Prepaid expenses and other assets</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 300</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 521</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40C_eus-gaap--AssetsCurrent_i02TI_pn3n3_mtACzTlC_maAzUjv_za4SVd4ygzt4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: left">Total current<br /> assets</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,879</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,253</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_402_eus-gaap--PropertyPlantAndEquipmentNet_i01I_pn3n3_maAzUjv_zBihEEycfqAk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Property and equipment, net</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">244</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">251</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_400_eus-gaap--OperatingLeaseRightOfUseAsset_i01I_pn3n3_maAzUjv_z6RDPVYdy2We" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Operating<br /> right-of-use assets</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt; text-align: center">3</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 644</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 775</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_402_eus-gaap--Assets_i01TI_pn3n3_mtAzUjv_zKCxMc022s84" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 2.5pt">Total<br /> assets</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt; text-align: center"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 16,767</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 26,279</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40C_eus-gaap--LiabilitiesAndStockholdersEquityAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: -30pt; text-align: center">LIABILITIES AND<br /> STOCKHOLDERS’ EQUITY</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_409_eus-gaap--LiabilitiesCurrentAbstract_i01B" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Current liabilities:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_408_eus-gaap--AccountsPayableCurrent_i02I_pn3n3_maLCzhP9_zYbtLGKVJhG4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Accounts<br /> payables</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">279</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">275</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_406_eus-gaap--OperatingLeaseLiabilityCurrent_i02I_pn3n3_maLCzhP9_zbBgeXZzAQMk" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Lease<br /> liabilities</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center">3</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">278</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">187</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_408_eus-gaap--AccruedLiabilitiesCurrent_i02I_pn3n3_maLCzhP9_zm8ENXzvaeW2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"> Accrued liabilities</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt; text-align: center">7</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 1,427</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 883</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_409_eus-gaap--LiabilitiesCurrent_i02TI_pn3n3_mtLCzhP9_maLzqte_zEGSH6zrxJL4" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left">Total current<br /> liabilities</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,984</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,345</td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_402_eus-gaap--LiabilitiesNoncurrentAbstract_i01B" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Non current liabilities:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_406_eus-gaap--OperatingLeaseLiabilityNoncurrent_i02I_pn3n3_maLzqte_zVubjuvonAk8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"> Long-term lease liabilities</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt; text-align: center">3</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 402</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 626</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40D_eus-gaap--Liabilities_i01TI_pn3n3_mtLzqte_maLASEzRqA_zDhS0cghEAJ9" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 1.5pt">Total<br /> liabilities</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 2,386</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 1,971</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_407_eus-gaap--CommitmentsAndContingencies_i01I_maLASEzRqA_zqtZv2IchIck" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Commitments and contingencies</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center">4</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0109"> </span></td> <td style="text-align: right"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><br /> –</span></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0110"> </span></td> <td style="text-align: right"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><br /> –</span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_402_eus-gaap--StockholdersEquityAbstract_i01B" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Stockholders’ equity:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_400_eus-gaap--CommonStockValue_i02I_pn3n3_maSEzE9s_zaTMOlGip1b1" style="vertical-align: bottom; background-color: White"> <td>Common stock; $<span id="FORM10-K_HTM_xdx_90E_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20211231_zxlDTgGsjfU4" title="Common stock, par value"><span id="FORM10-K_HTM_xdx_90E_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20201231_zZlRa75xEzTi" title="Common stock, par value">0.01</span></span> par value;<br /> <span id="FORM10-K_HTM_xdx_90A_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20211231_zpYYV8eqU6l3" title="Common stock, shares authorized"><span id="FORM10-K_HTM_xdx_90D_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20201231_z0IY9kaqTn19" title="Common stock, shares authorized">60,000,000</span></span><br /> shares authorized as of December 31, 2021 and 2020; <span id="FORM10-K_HTM_xdx_900_eus-gaap--CommonStockSharesIssued_iI_pid_c20211231_zRdCkYRrHrCe" title="Common stock, shares issued"><span id="FORM10-K_HTM_xdx_90D_eus-gaap--CommonStockSharesIssued_iI_pid_c20201231_zkhGGVHMoKih" title="Common stock, shares issued"><span id="FORM10-K_HTM_xdx_905_eus-gaap--CommonStockSharesOutstanding_iI_pid_c20211231_zGSlBVQAsUa7" title="Common stock, shares outstanding"><span id="FORM10-K_HTM_xdx_907_eus-gaap--CommonStockSharesOutstanding_iI_pid_c20201231_zCoFhApm2Pn4" title="Common stock, shares outstanding">7,108,133</span></span></span></span><br /> shares issued and outstanding as of December 31, 2021 and 2020</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center">5</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">72</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">72</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_405_eus-gaap--AdditionalPaidInCapitalCommonStock_i02I_pn3n3_maSEzE9s_zR3SP4DQ2CZe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Additional paid-in<br /> capital</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">69,902</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">68,516</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_408_eus-gaap--RetainedEarningsAccumulatedDeficit_i02I_pn3n3_maSEzE9s_zZp1TyADOVE2" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"> Accumulated deficit</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (55,593</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (44,280</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_400_eus-gaap--StockholdersEquity_i02TI_pn3n3_mtSEzE9s_maLASEzRqA_znN4vRPKrQyk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 1.5pt">Total<br /> stockholders’ equity</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 14,381</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 24,308</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_408_eus-gaap--LiabilitiesAndStockholdersEquity_i01TI_pn3n3_mtLASEzRqA_zW3Jf0jEgZti" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 2.5pt">Total<br /> liabilities and stockholders’ equity</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt; text-align: center"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 16,767</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 26,279</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The<br /> accompanying notes are an integral part of these consolidated<br /> financial statements.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p><!-- Field: Page; Sequence: 64; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><br /></b> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> MICROBOT MEDICAL INC.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> <span id="FORM10-K_HTM_f_003"/>Consolidated Statements of<br /> Comprehensive Loss</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.<br /> dollars in thousands</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Except<br /> share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" id="FORM10-K_HTM_xdx_304_113_pn3n3_zB3vHnWM9O35" summary="xdx: Statement - Consolidated Statements of Comprehensive Loss" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="FORM10-K_HTM_xdx_492_20210101__20211231_zpDvlUdMxKS7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2021</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="FORM10-K_HTM_xdx_49D_20200101_20201231" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2020</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> <p style="margin-top: 0; margin-bottom: 0">For the Years Ended</p> <p style="margin-top: 0; margin-bottom: 0">December 31,</p> </td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2021</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> 2020</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr id="FORM10-K_HTM_xdx_406_eus-gaap--ResearchAndDevelopmentExpense_iN_di_msOILz5RM_zyehj27VN8yh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; width: 64%; text-align: left"> Research and development</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">(6,153</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">(3,396</td> <td style="width: 1%; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_409_eus-gaap--GeneralAndAdministrativeExpense_iN_di_msOILz5RM_zU6CoCPH58Xf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"> General and administrative</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (5,204</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (5,693</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_40D_eus-gaap--OperatingIncomeLoss_iT_pn3n3_mtOILz5RM_maNILzxnG_zlYapiMSSyl9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: left">Operating<br /> loss</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(11,357</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(9,089</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_403_eus-gaap--InterestIncomeExpenseNonoperatingNet_maNILzxnG_zkRv2GpJfmnb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"> Financing income (expenses), net</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 44</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (80</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_408_eus-gaap--NetIncomeLoss_iT_pn3n3_mtNILzxnG_zr4OG7gev5ld" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net loss</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (11,313</td> <td style="padding-bottom: 2.5pt; text-align: left">)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (9,169</td> <td style="padding-bottom: 2.5pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_407_eus-gaap--EarningsPerShareBasicAndDiluted_pid_zFMChN5pYGA3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and<br /> diluted net loss per share</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (1.59</td> <td style="padding-bottom: 2.5pt; text-align: left">)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (1.29</td> <td style="padding-bottom: 2.5pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td/> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_400_eus-gaap--WeightedAverageNumberOfShareOutstandingBasicAndDiluted_pid_zQRuPfdoYFld" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt; padding-bottom: 2.5pt">Basic and<br /> diluted weighted average common shares outstanding</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">  </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 7,108,133</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">  </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 7,117,747</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The<br /> accompanying notes are an integral part of these consolidated<br /> financial statements.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 65; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> MICROBOT MEDICAL INC.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> <span id="FORM10-K_HTM_f_004"/>Consolidated Statements of<br /> Shareholder’s Equity</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.<br /> dollars in thousands</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Except<br /> share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" id="FORM10-K_HTM_xdx_302_114_pn3n3_zG1rrpBpqCb4" summary="xdx: Statement - Consolidated Statements of Shareholder's Equity" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Shares</b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" id="FORM10-K_HTM_xdx_4B1_us-gaap--StatementEquityComponentsAxis_us-gaap--CommonStockMember_zVFDcC0SAOZ9" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" id="FORM10-K_HTM_xdx_4BF_us-gaap--StatementEquityComponentsAxis_us-gaap--AdditionalPaidInCapitalMember_zqUfyalFVEQ6" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" id="FORM10-K_HTM_xdx_4BD_us-gaap--StatementEquityComponentsAxis_us-gaap--TreasuryStockMember_zM7A9Wk7wdCj" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" id="FORM10-K_HTM_xdx_4B2_us-gaap--StatementEquityComponentsAxis_us-gaap--RetainedEarningsMember_zKuqDSZTj2gl" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" id="FORM10-K_HTM_xdx_4B0_zfOhv13eZ7G4" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Common<br /> Stock</b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Additional<br /> Paid-In Capital</b></span></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Treasury<br /> Shares</b></span></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Accumulated<br /> Deficit</b></span></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Total<br />Stockholders’ Equity</b></span></p> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Shares</b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Amount</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></td> </tr> <tr id="FORM10-K_HTM_xdx_434_c20210101__20211231_eus-gaap--StockholdersEquity_iS_zLLqIlNOVSPg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Balances, December 31, 2020</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td id="FORM10-K_HTM_xdx_98A_eus-gaap--SharesOutstanding_iS_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z6CElp0mHdZf" title="Balance, shares" style="width: 6%; text-align: right"> 7,108,133</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 6%; text-align: right">72</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 6%; text-align: right">68,516</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 6%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0169">–</span></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 6%; text-align: right">(44,280</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 6%; text-align: right">24,308</td> <td style="width: 1%; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_407_eus-gaap--AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue_z7sgd0xyOque" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Share-based compensation</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0175"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,386</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0177"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0178"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,386</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40C_eus-gaap--StockIssuedDuringPeriodValueStockOptionsExercised_i_pn3n3" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left">Exercise of options</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40C_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_i_pdd" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left">Exercise of options, Shares</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_400_ecustom--StockCancellationValueOfTreasuryShares_i_pn3n3" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left">Cancellation of treasury Common<br /> Stock</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_402_ecustom--StockCancellationSharesOfTreasuryShares_i_pdd" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left">Cancellation of treasury Common Stock,<br /> Shares</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_406_eus-gaap--NetIncomeLoss_i_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Net loss</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> <span style="-sec-ix-hidden: xdx2ixbrl0205"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> <span style="-sec-ix-hidden: xdx2ixbrl0206"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> <span style="-sec-ix-hidden: xdx2ixbrl0207"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (11,313</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (11,313</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_43E_c20210101__20211231_eus-gaap--StockholdersEquity_iE_zYhGFF6gBw4d" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balances, December 31, 2021</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">  </td> <td id="FORM10-K_HTM_xdx_98B_eus-gaap--SharesOutstanding_iE_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zjCQP8TFlXIg" title="Balance, shares" style="border-bottom: Black 2.5pt double; text-align: right"> 7,108,133</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 72</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 69,902</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <span style="-sec-ix-hidden: xdx2ixbrl0213">–</span></td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (55,593</td> <td style="padding-bottom: 2.5pt; text-align: left">)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 14,381</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 12pt"> </td> <td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt; text-align: right"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt; text-align: right"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt; text-align: right"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt; text-align: right"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt; text-align: right"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td> <td style="font-size: 12pt; text-align: right"> </td> <td style="font-size: 12pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_43D_c20200101__20201231_eus-gaap--StockholdersEquity_iS_zLYQKSLAYWqc" style="vertical-align: bottom; background-color: White"> <td>Balances, December 31, 2019</td> <td> </td> <td style="text-align: left"> </td> <td id="FORM10-K_HTM_xdx_98B_eus-gaap--SharesOutstanding_iS_pid_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zwJGZMXADYX4" title="Balance, shares" style="text-align: right">7,185,628</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">72</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">69,954</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">(3,375</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">(35,111</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">31,540</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_435_c20200101__20201231_eus-gaap--StockholdersEquity_iS_z14zFzcJD5Tf" style="display: none; vertical-align: bottom; background-color: White"> <td>Balance</td> <td> </td> <td style="text-align: left"> </td> <td id="FORM10-K_HTM_xdx_986_eus-gaap--SharesOutstanding_iS_pid_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z02Ev2QAaT68" title="Balance, shares" style="text-align: right">7,185,628</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">72</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">69,954</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">(3,375</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">(35,111</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">31,540</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_406_eus-gaap--StockIssuedDuringPeriodValueStockOptionsExercised_zJxP7aYqzna9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercise of options</td> <td> </td> <td style="text-align: left"> </td> <td id="FORM10-K_HTM_xdx_98B_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z2LptiEFynd6" title="Exercise of options, Shares" style="text-align: right"> 5,838</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(1</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0237"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0238"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0239"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_405_ecustom--StockCancellationValueOfTreasuryShares_zEml7XGlIG98" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cancellation of treasury Common<br /> Stock</td> <td> </td> <td style="text-align: left"> </td> <td id="FORM10-K_HTM_xdx_98F_ecustom--StockCancellationSharesOfTreasuryShares_pid_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zVB83f7rY1Si" title="Cancellation of treasury Common Stock, Shares" style="text-align: right">(83,333</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(1</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(3,374</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,375</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0246"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0247"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_408_eus-gaap--AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue_zjPCDzjbpAac" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Share-based compensation</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0251"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,937</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0253"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0254"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,937</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_404_eus-gaap--NetIncomeLoss_z8Z9KA8MeNMh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Net loss</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> <span style="-sec-ix-hidden: xdx2ixbrl0257"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> <span style="-sec-ix-hidden: xdx2ixbrl0258"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> <span style="-sec-ix-hidden: xdx2ixbrl0259"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (9,169</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">  </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (9,169</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_43B_c20200101__20201231_eus-gaap--StockholdersEquity_iE_zmN4rO7AL71g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balances, December 31, 2020</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">  </td> <td id="FORM10-K_HTM_xdx_98D_eus-gaap--SharesOutstanding_iE_pid_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zXoYGA3SowV5" title="Balance, shares" style="border-bottom: Black 2.5pt double; text-align: right"> 7,108,133</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 72</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 68,516</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <span style="-sec-ix-hidden: xdx2ixbrl0265">–</span></td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (44,280</td> <td style="padding-bottom: 2.5pt; text-align: left">)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 24,308</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_43D_c20200101__20201231_eus-gaap--StockholdersEquity_iE_zZbVnOk2s46j" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">  </td> <td id="FORM10-K_HTM_xdx_98B_eus-gaap--SharesOutstanding_iE_pid_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zA9JrMaq9kM9" title="Balance, shares" style="border-bottom: Black 2.5pt double; text-align: right"> 7,108,133</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 72</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 68,516</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <span style="-sec-ix-hidden: xdx2ixbrl0273">–</span></td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (44,280</td> <td style="padding-bottom: 2.5pt; text-align: left">)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 24,308</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The<br /> accompanying notes are an integral part of these consolidated<br /> financial statements.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p><!-- Field: Page; Sequence: 66; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> MICROBOT MEDICAL INC.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> <span id="FORM10-K_HTM_f_005"/>Consolidated Statements of<br /> Cash Flows</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.<br /> dollars in thousands</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Except<br /> share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" id="FORM10-K_HTM_xdx_305_112_pn3n3_z45wvhVolGz9" summary="xdx: Statement - Consolidated Statements of Cash Flows" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" id="FORM10-K_HTM_xdx_499_20210101__20211231_zQ8OPnecG5w9" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold"> 2021</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" id="FORM10-K_HTM_xdx_493_20200101__20201231_zGvAgxJJN389" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold"> 2020</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold"> For the Years Ended December 31,</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold"> 2021</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold"> 2020</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40D_eus-gaap--NetCashProvidedByUsedInOperatingActivitiesAbstract_iB_zG6e3wUr0Sg2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating activities:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_404_eus-gaap--NetIncomeLoss_i01_maCz3N5_zzs8czcuO4m3" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Net loss</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 16%; text-align: right">(11,313</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 16%; text-align: right">(9,169</td> <td style="width: 1%; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_406_eus-gaap--AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_i01B_zsAXAAwmY5V7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Adjustments to reconcile net loss to<br /> net cash flows from operating activities:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_403_eus-gaap--DepreciationDepletionAndAmortization_i02_maCz3N5_zuwtXnISWyUg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Depreciation and<br /> amortization</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">76</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">68</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_401_ecustom--UnrealizedGainFromConvertibleLoan_i02N_pn3n3_di_msCz3N5_zV36HY6qFVej" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Unrealized gain<br /> from convertible loan</td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0291"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(61</td> <td style="text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_403_ecustom--NonCashAndAccruedInterest_i02_maCz3N5_zF4JFYr1tseg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Non-cash and<br /> accrued interest</td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0294"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(9</td> <td style="text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_407_eus-gaap--ShareBasedCompensation_i02_maCz3N5_zotgZf0o5Ovd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Share-based<br /> compensation expense</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,386</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,937</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_405_eus-gaap--IncreaseDecreaseInOperatingCapitalAbstract_i01B_zanDltO059sg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Changes in assets and<br /> liabilities:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_405_eus-gaap--IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets_i02N_di_msCz3N5_zlUfAg0qAxFf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Prepaid expenses<br /> and other assets</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">177</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">222</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_406_eus-gaap--IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities_i02_maCz3N5_znC4HXjbECj2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; padding-left: 10pt; text-align: left">Other<br /> payables and accrued liabilities</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 320</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (240</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_40F_eus-gaap--NetCashProvidedByUsedInOperatingActivities_i01T_mtCz3N5_maCzS1u_zZKeV4qTZUgc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; padding-left: 20pt; text-align: left">Net<br /> cash flows from operating activities</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (9,354</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (7,252</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_40C_eus-gaap--NetCashProvidedByUsedInInvestingActivitiesAbstract_iB_zZC8hhyjIEZc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Investing activities:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_40B_eus-gaap--PaymentsToAcquirePropertyPlantAndEquipment_i01N_pn3n3_di_msCzdUb_zj8coxsVeuX6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Purchase of<br /> property and equipment</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(69</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(91</td> <td style="text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_406_eus-gaap--PaymentsToAcquireOtherInvestments_i01N_di_msCzdUb_z0RU54etleJa" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Investment in<br /> convertible loan</td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0318"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(200</td> <td style="text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_401_ecustom--ProceedsFromSaleMaturityAndCollectionsOfInvestmentsExcludingMarketableSecurities_i01_pn3n3_maCzdUb_zIPOwQt4Dvlg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Proceeds from sale<br /> of investment</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">270</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0322"> </span></td> <td style="text-align: right">–</td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_401_eus-gaap--ProceedsFromSaleAndMaturityOfMarketableSecurities_i01_maCzdUb_zBTFgkMc8lMg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; padding-left: 10pt; text-align: left"> Proceeds from sales of marketable security</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 2,999</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 2,521</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_402_eus-gaap--NetCashProvidedByUsedInInvestingActivities_i01T_mtCzdUb_maCzS1u_zMInVU9ABC4b" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; padding-left: 20pt; text-align: left">Net<br /> cash flows from investing activities</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 3,200</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (2,768</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_407_eus-gaap--NetCashProvidedByUsedInFinancingActivitiesAbstract_iB_zpLJRXK5bYWa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Financing activities:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_400_ecustom--RepaymentOfShareholdersInvestment_i01N_di_msCz873_zSEAAsbRQy92" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; padding-left: 10pt; text-align: left"> Repayment of shareholders investment</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0336"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (3,375</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_401_eus-gaap--NetCashProvidedByUsedInFinancingActivities_i01T_mtCz873_maCzS1u_zCEUOPi4n1eg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; padding-left: 20pt; text-align: left">Net<br /> cash flows from financing activities</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0339"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> –</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> (3,375</td> <td style="padding-bottom: 1.5pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_404_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect_iT_mtCzS1u_z0uQ3N2SmINg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Decrease in cash,<br /> cash equivalents and restricted cash</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(6,154</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(13,395</td> <td style="text-align: left">)</td> </tr> <tr id="FORM10-K_HTM_xdx_40C_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations_iS_zXBlTgEhbc54" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; padding-left: 10pt; text-align: left">Cash,<br /> cash equivalents and restricted cash at beginning of period</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 19,734</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> 33,129</td> <td style="padding-bottom: 1.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_402_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations_iE_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 10pt; text-align: left">Cash,<br /> cash equivalents and restricted cash at ending of period</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 13,580</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 19,734</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_409_eus-gaap--SupplementalCashFlowElementsAbstract_iB_zrWw3NSlvXqg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Supplemental disclosure of cash flow<br /> information:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_400_ecustom--InterestPaidFromLitigation_i01_pn3n3_z3yyO6ZeRXGa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 20pt; text-align: left"> Interest paid from litigation</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <span style="-sec-ix-hidden: xdx2ixbrl0354">–</span></td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 236</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_400_eus-gaap--InterestPaidNet_i01_pn3n3_z0zhicMbRpRj" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 20pt; text-align: left">Cash<br /> received from interest</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 32</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> <tr id="FORM10-K_HTM_xdx_403_eus-gaap--RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability_i01_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; padding-bottom: 2.5pt; text-align: left"> Right-of-use assets and lease liability</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 69</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <span style="-sec-ix-hidden: xdx2ixbrl0361">–</span></td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The<br /> accompanying notes are an integral part of these consolidated<br /> financial statements.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 67; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> MICROBOT MEDICAL INC.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> <span id="FORM10-K_HTM_f_006"/>NOTES TO CONSOLIDATED<br /> FINANCIAL STATEMENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.<br /> dollars in thousands</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Except<br /> share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p id="FORM10-K_HTM_xdx_808_eus-gaap--NatureOfOperations_zvGXB5SRy4Rd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE<br /> 1 – <span id="FORM10-K_HTM_xdx_82D_zrw07ssaPpNd">GENERAL</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Description<br /> of business:</b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Microbot<br /> Medical Inc. (the “Company”) is a pre-clinical medical device<br /> company specializing in the research, design and development of<br /> next generation micro-robotics assisted medical technologies<br /> targeting the minimally invasive surgery space. The Company is<br /> primarily focused on leveraging its micro-robotic technologies with<br /> the goal of redefining surgical robotics while improving surgical<br /> outcomes for patients.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company incorporated on August 2, 1988 in the State of Delaware<br /> under the name Cellular Transplants, Inc. The original Certificate<br /> of Incorporation was restated on February 14, 1992 to change the<br /> name of the Company to Cyto Therapeutics, Inc. On May 24, 2000, the<br /> Certificate of Incorporation as restated was further amended to<br /> change the name of the Company to StemCells, Inc.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On<br /> November 28, 2016, the Company consummated a transaction pursuant<br /> to an Agreement and Plan of Merger, dated August 15, 2016, with<br /> Microbot Medical Ltd., a private medical device company organized<br /> under the laws of the State of Israel (“Microbot Israel”). On the<br /> same day and in connection with the Merger, the Company changed its<br /> name from StemCells, Inc. to Microbot Medical Inc. On November 29,<br /> 2016, the Company’s common stock began trading on the Nasdaq<br /> Capital Market under the symbol “MBOT”.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company and its subsidiaries are collectively referred to as the<br /> “Company”.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To<br /> date, the Company has not generated revenues from its operations.<br /> As of December 31, 2021, the Company had unrestricted cash, cash<br /> equivalent and marketable securities balance of approximately<br /> $<span id="FORM10-K_HTM_xdx_906_ecustom--UnrestrictedCashAndCashEquivalent_iI_c20211231_zof93sJeUZo3" title="Unrestricted cash and cash equivalent">15,492</span><br /> excluding encumbered cash, which management believes is sufficient<br /> to fund its operations for more than 12 months from the date of<br /> issuance of these financial statements and sufficient to fund its<br /> operations necessary to continue development activities of its<br /> current proposed products with full flexibilities to adjust its<br /> costs to the cash needed for the next 12 months.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Due<br /> to continuing research and development activities, the Company<br /> expects to continue to incur additional losses for the foreseeable<br /> future. While management of the Company believes that it has<br /> sufficient funds for more than 12 months, the Company may seek to<br /> raise additional funds through future issuances of either debt<br /> and/or equity securities and possibly additional grants from the<br /> Israeli Innovation Authority and other government institutions. The<br /> Company’s ability to raise additional capital in the equity and<br /> debt markets is dependent on a number of factors, including, but<br /> not limited to, the market demand for the Company’s stock, which<br /> itself is subject to a number of development and business risks and<br /> uncertainties, as well as the uncertainty that the Company would be<br /> able to raise such additional capital at a price or on terms that<br /> are favorable to the Company. As noted above, Company’s management<br /> and board of directors believe that the existing funds are<br /> sufficient to fund the Company’s operations for more than 12<br /> months, even without raising additional funds.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An<br /> epidemic of the coronavirus disease (“COVID-19”) is ongoing<br /> throughout the world. As the outbreak is still evolving, much of<br /> its impact continues to change. As of this filing, it is impossible<br /> to predict future effects and potential spread of the coronavirus<br /> disease globally. The coronavirus disease may cause significant<br /> delays and disruptions to our pre-clinical studies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,<br /> travel restrictions have been implemented with respect to certain<br /> countries in an effort to contain the coronavirus disease, and<br /> several countries have expanded screenings of travelers. As travel<br /> restrictions may be implemented and adopted by countries around the<br /> world, the Company and its contract research organizations may be<br /> unable to visit its clinical trial sites and monitor the data from<br /> its clinical trials on timely basis. The Company’s employees may<br /> also face travel restrictions, which would impact its business.<br /> Furthermore, some of the Company’s manufacturers and suppliers are<br /> in Europe and may be impacted by port closures and other<br /> restrictions resulting from the coronavirus outbreak, which may<br /> disrupt the Company’s supply chain or limit its ability to obtain<br /> sufficient materials for its products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 68; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> MICROBOT MEDICAL INC.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.<br /> dollars in thousands</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Except<br /> share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> ultimate impact of the COVID-19 outbreaks or similar health<br /> epidemics are highly uncertain and subject to changes, and the<br /> Company cannot presently predict the scope and severity of any<br /> potential business shutdowns or disruptions. However, if the<br /> Company or any of the third parties with whom the Company’s<br /> engages, including the suppliers, animal trial sites, contract<br /> research organizations, regulators, including the FDA health care<br /> providers and other third parties with whom the Company conducts<br /> business, were to experience shutdowns or other business<br /> disruptions, the Company’s ability to conduct our business and<br /> operations could be materially and negatively impacted, which could<br /> prevent or delay the Company from obtaining approval for its<br /> devices.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> preparation of financial statements in conformity with U.S. GAAP<br /> requires management to make estimates and assumptions pertaining to<br /> transactions and matters whose ultimate effect on the financial<br /> statements cannot precisely be determined at the time of financial<br /> statements preparation. Although these estimates are based on<br /> management’s best judgment, actual results may differ from these<br /> estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="FORM10-K_HTM_xdx_80E_eus-gaap--SignificantAccountingPoliciesTextBlock_zSRBUguPjuE5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE<br /> 2 – <span id="FORM10-K_HTM_xdx_82B_zY00JSMpqqRb">SUMMARY OF<br /> SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> significant accounting policies applied in the preparation of the<br /> financial statements are as follows:</span></p> <p id="FORM10-K_HTM_xdx_84E_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zmmOFihXzqOf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_866_zog3NfJI5s0a"><br /> Basis of presentation:</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> financial statements have been prepared in conformity with<br /> accounting principles generally accepted in the United States of<br /> America (“US GAAP”).</span></p> <p id="FORM10-K_HTM_xdx_84D_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zKpbbRaeFUyj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_864_zfKYNJ1XbRwb"><br /> Financial statement in U.S. dollars:</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> functional currency of the Company is the U.S. dollar (“dollar”)<br /> since the dollar is the currency of the primary economic<br /> environment in which the Company has operated and expects to<br /> continue to operate in the foreseeable future.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transactions<br /> and balances denominated in dollars are presented at their original<br /> amounts. Transactions and balances denominated in foreign<br /> currencies have been re-measured to dollars in accordance with the<br /> provisions of ASC 830-10, “Foreign Currency<br /> Translation”.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All<br /> transaction gains and losses from re-measurement of monetary<br /> balance sheet items denominated in non-dollar currencies are<br /> reflected in the statement of operations as financial income or<br /> expenses, as appropriate.</span></p> <p id="FORM10-K_HTM_xdx_84E_eus-gaap--ConsolidationPolicyTextBlock_zukIRII7ncKd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in"> </td> <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_864_zHfFxOKUJ85"><br /> Principles of consolidation:</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> consolidated financial statements include the accounts of the<br /> Company and its wholly-owned subsidiary. Inter-company balances and<br /> transactions have been eliminated in consolidation.</span></p> <p id="FORM10-K_HTM_xdx_849_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zp7TPbNAIuUe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>D.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_86A_zdTLjbkxDcz9"><br /> Cash and cash equivalents:</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify; text-indent: -28.35pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash<br /> and cash equivalents consist of cash and demand deposits in banks,<br /> and other short-term liquid investments (primarily interest-bearing<br /> time deposits) with original maturities of less than three<br /> months</span></p> <p id="FORM10-K_HTM_xdx_85F_z49c02TkF0mg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 69; Value: 1 --></p> <p><!-- Field: /Page --></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> MICROBOT MEDICAL INC.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.<br /> dollars in thousands</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Except<br /> share and per share data)</b></span></p> <p id="FORM10-K_HTM_xdx_840_eus-gaap--CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy_zPoAarSrGbz5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>  </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify; text-indent: -28.35pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Restricted<br /> cash as of December 31, 2021 and 2020 included an $<span id="FORM10-K_HTM_xdx_909_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_c20211231_zFRXPjmZwZUk" title="Restricted cash">87</span> and $<span id="FORM10-K_HTM_xdx_90D_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn3n3_c20201231_ziNJOw0EhiSc" title="Restricted cash">84</span>, respectively, collateral account<br /> for the Company’s leases agreements and credit line from the<br /> bank.</span></p> <p id="FORM10-K_HTM_xdx_840_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zjia9DD24W0d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>F.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_86F_zG81f9b4FLNf"><br /> Fair value of financial instruments:</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> carrying values of cash and cash equivalents, other receivable and<br /> other accounts payable and accrued liabilities approximate their<br /> fair value due to the short-term maturity of these<br /> instruments.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The<br /> Company measures the fair value of certain of its financial<br /> instruments (such as marketable securities) on a recurring basis.<br /> The method of determining the fair value of marketable securities<br /> is discussed in Note 3.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A<br /> fair value hierarchy is used to rank the quality and reliability of<br /> the information used to determine fair values. Financial assets and<br /> liabilities carried at fair value will be classified and disclosed<br /> in one of the following three categories:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Level<br /> 1</b> – Quoted prices (unadjusted) in active markets for identical<br /> assets and liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Level<br /> 2</b> – Inputs other than Level 1 that are observable, either<br /> directly or indirectly, such as unadjusted quoted prices for<br /> similar assets and liabilities, unadjusted quoted prices in the<br /> markets that are not active, or other inputs that are observable or<br /> can be corroborated by observable market data for substantially the<br /> full term of the assets or liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Level<br /> 3</b> – Unobservable inputs that are supported by little or no<br /> market activity and that are significant to the fair value of the<br /> assets or liabilities.</span></p> <p id="FORM10-K_HTM_xdx_840_eus-gaap--ConcentrationRiskCreditRisk_zVyhHxGxOuXi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in"> </td> <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>G.</b></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_862_zdTFAGThKRK7"><br /> Concentrations of credit risk</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial<br /> instruments which potentially subject the Company to credit risk<br /> consist primarily of cash and cash equivalents. The Company holds<br /> these investments in highly rated financial institutions. These<br /> amounts at times may exceed federally insured limits. The Company<br /> has not experienced any credit losses in such accounts and does not<br /> believe it is exposed to any significant credit risk on these<br /> funds. The Company has no off-balance sheet concentrations of<br /> credit risk, such as foreign currency exchange contracts, option<br /> contracts, or other hedging arrangements.</span></p> <p id="FORM10-K_HTM_xdx_843_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_zoD3w7ft26Ke" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>H.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_866_zutm4C9Lsd8l"><br /> Property and equipment:</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="FORM10-K_HTM_xdx_899_ecustom--ScheduleOfPropertyAndEquipmentUsefulLivesTableTextBlock_zLmRmbN9W1mi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property<br /> and equipment are presented at costs less accumulated depreciation.<br /> Depreciation is calculated based on the straight-line method over<br /> the estimated useful lives of the assets, at the following annual<br /> rates:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="FORM10-K_HTM_xdx_8BF_zCQesRqsPV0a" style="display: none">ESTIMATED USEFUL LIVES OF PROPERTY AND<br /> EQUIPMENT</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> %</td> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Research equipment and software</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="FORM10-K_HTM_xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ResearchEquipmentAndSoftwareMember__srt--RangeAxis__srt--MinimumMember_zCGXtc7a4R82" title="Property, plant and equipment, useful life">25</span>–<span id="FORM10-K_HTM_xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ResearchEquipmentAndSoftwareMember__srt--RangeAxis__srt--MaximumMember_zNF2RJo1PBC9" title="Property, plant and equipment, useful life">33</span></span></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 76%; text-align: left">Furniture and office<br /> equipment</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 20%; text-align: center"><span id="FORM10-K_HTM_xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FurnitureAndOfficeEquipmentMember_zvAIeBqwZ4d4" title="Property, plant and equipment, useful life">7</span></td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Leasehold improvements</td> <td> </td> <td style="text-align: left"> </td> <td id="FORM10-K_HTM_xdx_989_eus-gaap--PropertyPlantAndEquipmentEstimatedUsefulLives_c20210101__20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zYnD7Po7wUac" title="Property, plant and equipment, useful life" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Over<br /> the lease period</span></td> <td style="text-align: left"> </td> </tr> </table> <p id="FORM10-K_HTM_xdx_8AF_zUw7wI7OJJbh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p><!-- Field: Page; Sequence: 70; Value: 1 --></p> <p><!-- Field: /Page --></p> <p id="FORM10-K_HTM_xdx_853_zpTJeRWglUzh" style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> MICROBOT MEDICAL INC.</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline"><br /> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.<br /> dollars in thousands</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Except<br /> share and per share data)</b></span></p> <p id="FORM10-K_HTM_xdx_844_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zygpXBtNfxnd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 72px"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>I.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_86C_z2L1q57WeoIl"><br /> Liabilities due to termination of employment<br /> agreements:</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under<br /> Israeli employment laws, employees of Microbot Israel are included<br /> under Article 14 of the Severance Compensation Act, 1963 (“Article<br /> 14”). According to Article 14, these employees are entitled to<br /> monthly deposits made by Microbot Israel on their behalf with<br /> insurance companies. Payments in accordance with Article 14 release<br /> Microbot Israel from any future severance payments (under the<br /> Israeli Severance Compensation Act, 1963) with respect of those<br /> employees. The aforementioned deposits are not recorded as an asset<br /> in the Company’s balance sheets.</span></p> <p id="FORM10-K_HTM_xdx_840_eus-gaap--EarningsPerSharePolicyTextBlock_z1KnQ8XvgCac" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 72px"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>J.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_863_zs8n2XXHdkKk"><br /> Basic and diluted net loss per share:</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic<br /> net loss per share is calculated by dividing net loss attributable<br /> to common stock shareholders by the weighted average number of<br /> shares of common stock outstanding during the year without<br /> consideration of potentially dilutive securities. Diluted net loss<br /> per share is calculated by giving effect to all potentially<br /> dilutive securities outstanding for the period using the treasury<br /> share method.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All<br /> outstanding stock options and warrants have been excluded from the<br /> calculation of the diluted loss per share for the years ended<br /> December 31, 2021 and December 31, 2020, since all such securities<br /> have an anti-dilutive effect.</span></p> <p id="FORM10-K_HTM_xdx_84F_eus-gaap--ResearchAndDevelopmentExpensePolicy_zoS6l8vNu0A7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 72px"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>K.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="FORM10-K_HTM_xdx_862_zKrHSS49zsq9"><br /> Research and development expenses, net:</span></b></span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.05pt; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research<br /> and development expenses are charged to the statement of operations<br /> as incurred. Grants for funding of approved research and<br /> development projects are recognized at the time the Company is<br /> entitled to such grants, on the basis of the costs incurred and<br /> applied as a dedu