XML 45 R28.htm IDEA: XBRL DOCUMENT v3.25.1
TAXES ON INCOME
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
TAXES ON INCOME

NOTE 16 - TAXES ON INCOME

 

The Company is subject to U.S. federal tax rate of 21% for the years ended December 31, 2024 and 2023.

 

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

 

As of December 31, 2024 and 2023, the Company has generated accumulated net operating losses in the U.S. of approximately $511,371 and $506,317, respectively. The Company has available carryforward net operating losses amounting to approximately $106,313 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 $85,415, and post-2017 net operating losses which can be carried forward indefinitely, amounting to approximately $20,898. 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 years ended 2024 and 2023. Microbot Israel has not received a final tax assessment since 2018.

 

As of December 31, 2024 and 2023, Microbot Israel has generated accumulated net operating losses in Israel of approximately $47,553 and $41,164, 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 16 - 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.

 

         
   As of December 31, 
   2024   2023 
         
Net operating loss carryforwards  $118,309   $115,778 
Operating lease liabilities   26    53 
Accrued vacation pay   69    59 
Legal settlement accrual   -    464 
Advance payment from IIA   -    17 
Total deferred tax assets   118,404    116,371 
Less: valuation allowance   (118,374)   (116,014)
Net deferred tax assets   30    357 
           
Operating leases, right-of-use assets   (30)   (60)
Grant receivable (Ministry of Economy)   -    (5)
Insurance recovery receivable   -    (280)
Marketable securities   -    (12)
Total deferred tax liabilities   (30)   (357)
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.

 

 

MICROBOT MEDICAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

(Except share and per share data)