Mazor Robotics Ltd.

CONSOLIDATED CASH FLOW STATEMENTS

(U.S. Dollars in thousands)

(UNAUDITED)

Nine months ended

Three months ended

September 30,

September 30,

2018

2017

2018

2017

Cash flows from operating activities:

Loss for the period

$

(22,061)

$

(12,856)

$

(16,943)

$

(3,948)

Adjustments:

Depreciation and amortization

$

1,507

$

1,107

$

628

$

393

Finance income, net

$

(372)

$

(328)

$

(265)

$

(209)

Share-based payments

$

12,576

$

4,975

$

8,673

$

2,553

Income tax benefit

$

(2)

$

(250)

$

(1)

$

-

$

13,709

$

5,504

$

9,035

$

2,737

Change in inventory

$

555

$

(3,350)

$

(129)

$

(400)

Change in trade and other accounts receivable

$

(5,545)

$

354

$

(982)

$

(906)

Change in prepaid lease fees

$

(6)

$

(30)

$

(14)

$

(8)

Change in trade and other accounts payable

$

6,358

$

159

$

6,361

$

(633)

Change in employee benefits

$

19

$

123

$

(21)

$

(13)

$

1,381

$

(2,744)

$

5,215

$

(1,960)

Interest received

$

703

$

432

$

208

$

249

Income tax paid

$

(37)

$

(15)

$

(3)

$

-

$

666

$

417

$

205

$

249

Net cash used in operating activities

$

(6,305)

$

(9,679)

$

(2,488)

$

(2,922)

Cash flows from investing activities:

Proceeds from (investment in) short-term investments
and deposits, net

$

(5,802)

$

1,416

$

(414)

$

(9,019)

Investment in long-term investments

$

(3,361)

$

(4,288)

$

-

$

(3,665)

Purchase of property and equipment

$

(1,487)

$

(1,557)

$

(410)

$

(244)

Net cash used in investing activities

$

(10,650)

$

(4,429)

$

(824)

$

(12,928)

Cash flows from financing activities:

Proceeds from issuance of ADRs, net

$

-

$

40,000

$

-

$

40,000

Proceeds from exercise of share options by employees

$

7,463

$

8,293

$

2,353

$

4,574

Net cash provided by financing activities

$

7,463

$

48,293

$

2,353

$

44,574

Net increase (decrease) in cash and cash equivalents

$

(9,492)

$

34,185

$

(959)

$

28,724

Cash and cash equivalents at the beginning of the period

$

46,376

$

14,954

$

37,475

$

20,347

Effect of exchange rate differences on balances of cash
and cash equivalents

$

(352)

$

(111)

$

16

$

(43)

Cash and cash equivalents at the end of the period

$

36,532

$

49,028

$

36,532

$

49,028

Supplementary cash flows information:

Purchase of property and equipment in credit

$

(19)

$

(96)

$

(19)

$

(96)

Issuance costs on credit

$

-

$

(22)

$

-

$

(22)

Classification of inventory to fixed assets

$

50

$

300

$

50

$

300