Microbot Medical Inc. Income Taxes Disclosure

NOTE 17 - TAXES ON INCOME

 

The Company is subject to U.S. federal tax rate of 21% for the years ended December 31, 2025 and 2024.

 

The Company has not been audited by the Internal Revenue Service since its incorporation.

 

As of December 31, 2025 and 2024, the Company has generated accumulated net operating losses in the U.S. of approximately $517,992 and $511,371, respectively. The Company has available carryforward net operating losses amounting to approximately $108,969 at the U.S. federal level. This consists of pre-2017 net operating losses subject to a 20-year limitation per Section 382, amounting to approximately $83,848, and post-2017 net operating losses which can be carried forward indefinitely, amounting to approximately $25,121. Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.

 

Microbot Israel is subject to Israeli corporate tax rate of 23% for the year ended December 31, 2025 and 2024. Microbot Israel has not received a final tax assessment since 2020.

 

As of December 31, 2025 and 2024, Microbot Israel has generated accumulated net operating losses in Israel of approximately $54,074 and $47,553, respectively, which may be carried forward and offset against taxable income in the future for an indefinite period.

 

 

MICROBOT MEDICAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

(Except share and per share data)

 

NOTE 17 - TAXES ON INCOME

 

The Company is still in its development stage and has not yet generated revenues, therefore, it is more likely than not that sufficient taxable income will not be available for the tax losses to be utilized in the future. Therefore, a valuation allowance was recorded to reduce the deferred tax assets to its recoverable amounts.

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES   

		As of December 31,
		2025				2024
Net operating loss carryforwards		$	121,215			$	118,309
Operating lease liabilities			198				26
Accrued vacation pay			101				69
Advance payment from IIA			22				-
Total deferred tax assets			121,536				118,404
Less: valuation allowance			(121,345	)			(118,374	)
Net deferred tax assets			191				30
Operating leases, right-of-use assets			(191	)			(30	)
Total deferred tax liabilities			(191	)			(30	)
Total net deferred tax assets		$	-			$	-

 

Reconciliation of Income Taxes:

 

The main reconciling item between the statutory tax rate of the Company and the effective tax rate is the recognition of valuation allowance in respect of deferred taxes relating to accumulated net operating losses carried forward due to the uncertainty of the realization of such deferred taxes.

SCHEDULE OF RECONCILIATION OF INCOME TAXES

 

		Tax				Rate
		Year ended December 31, 2025
		Tax				Rate
U.S. federal tax rate		$	(2,760	)			21	%
Statutory tax rate difference between U.S. and Israel			(130	)			1	%
Changes in valuation allowances			2,971				(22	%)
Share-based compensation			227				(2	%)
Other adjustments			(308	)			2	%
Effective tax rate		$	-				0	%

 

 

MICROBOT MEDICAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

(Except share and per share data)