White Diamond Research contends the LIBERTY is structurally unviable because hospitals absorb an unreimbursed $3K–$4K cost per procedure with no path to NTAP reimbursement, making the business model unsustainable. The firm also alleges deceptive investor messaging, citing MBOT's claim of '92% radiation reduction' as misleading because it applies only while the LIBERTY is in use, not to total procedure radiation exposure.

Not Present: Governance

The report's primary evidence includes direct interviews with two surgeons who have used the LIBERTY and a former MBOT commercialization employee; analytical evidence includes burn rate modeling ($30M/year against ~$70M cash) and NTAP eligibility analysis; documentary evidence includes MBOT's April 10, 2026 ATM filing and the Needham Healthcare Virtual Conference presentation on April 15, 2026.

A specific near-term catalyst is MBOT's filed $39M at-the-market offering (filed April 10, 2026), which the firm says signals imminent dilution; a pending catalyst is the October 2026 NTAP application deadline, which White Diamond Research expects MBOT to miss or fail, eliminating any reimbursement pathway for the LIBERTY.

Not Present: Thesis-Only

No Reimbursement, No Economic Case for Hospitals

White Diamond Research reports there is no reimbursement code for the LIBERTY, meaning hospitals absorb the full $3,000–$4,000 per-procedure cost as an unrecoverable expense. The anonymous surgeon told the firm: 'You could do this yourself without the robot, faster, with equal accuracy. And it's gonna cost you an extra $3,000. So, that's a hard sell.' The firm argues MBOT's pursuit of NTAP reimbursement is 'unrealistic' because the LIBERTY fails the statutory requirement of demonstrating substantial clinical improvement, and most procedures it handles are outpatient, making them categorically ineligible for NTAP.

Guidewire Incompatibility Eliminates Key Clinical Advantage

Dr. Charles Briggs of Tampa General Hospital confirmed to White Diamond Research that the LIBERTY is only compatible with the .014" guidewire, while the market standard for peripheral vascular procedures is the .018" wire. Because the .018" wire cannot be used with the LIBERTY, physicians must still wear lead vests for the bulk of each procedure, negating the device's primary marketed benefit of radiation reduction. White Diamond Research notes that when MBOT claims '92% radiation reduction,' this applies only to the portion of the procedure during which the LIBERTY is actively used, not to total procedure radiation exposure.

Single-Use Design Destroys Value, Limits Revenue Predictability

The entire LIBERTY system, including the wireless remote control and robotic drive unit, is discarded after a single use, a design CEO Harel Gadot confirmed publicly. White Diamond Research argues this makes low usage frequency directly observable as weak sales, and that Dr. Briggs's usage rate of approximately once per week-and-a-half at Tampa General is indicative of the commercial trajectory. The firm's former MBOT employee source stated the company lacked 'the right plan' for reimbursement, saying 'if it just is absolutely economically unreasonable, then the hospital's not going to sign off on it.'

CEO's Prior Robotic Venture Followed Identical Path to Failure

White Diamond Research identifies that MBOT founder and CEO Harel Gadot also founded XACT Robotics in 2013, which developed the XACT ACE Robotic System, also an FDA-cleared vascular surgery robot marketed on radiation reduction benefits. XACT Robotics shut down on September 3, 2023, laying off all 65 employees approximately four years after receiving FDA clearance, after failing to generate significant revenue. White Diamond Research argues MBOT is 'on the same road,' projecting that at a $30M annual burn against approximately $70M in cash, MBOT will exhaust capital within a similarly compressed timeframe.

Former Employee Describes CEO Conduct Harmful to Commercial Relationships

A former MBOT employee involved in commercialization planning and go-to-market strategy told White Diamond Research he departed due to 'misalignment' with CEO Gadot's business practices, describing the CEO's conduct with customers as 'almost threatening at times.' The former employee said physicians he introduced to Gadot told him afterward 'this is not comfortable,' damaging relationships he had built over 20 years. He also stated that MBOT did not have 'the right plan' for reimbursement, which he identified as a fundamental commercial barrier.