Shares of Israel-based pharmaceutical company PainReform (NASDAQ: PRFX) jumped nearly 130% on Tuesday after its renewable energy arm, DeepSolar, was accepted into the Nvidia (NASDAQ: NVDA) Connect Program. "By combining NVIDIA's AI capabilities with DeepSolar's domain expertise, we believe that DeepSolar Predict has the potential to redefine how photovoltaic energy is forecasted and optimized," said Ehud Geller, Chairman and Interim CEO of PainReform. PainReform said the current version of its platform has ...

Core Insights - DeepSolar, a solar energy business unit of PainReform Ltd., has been accepted into the NVIDIA Connect Program, which provides access to advanced AI tools and support for developing its solar forecasting platform [1][2][6] - The DeepSolar Predict solution aims to enhance weather prediction accuracy by up to 50%, improving the reliability of solar energy output predictions [2][3] - The software platform has already shown the ability to increase energy production and reduce operational and maintenance costs by up to 30% [4] Company Developments - Participation in the NVIDIA Connect Program allows DeepSolar to leverage NVIDIA's AI frameworks and engineering support, which will aid in the development of its solar forecasting solution [2][6] - Initial engagements with photovoltaic (PV) developers and utility-scale operators are underway to test DeepSolar Predict in real-world scenarios [4] - The advancements in solar forecasting align with growing demands for intelligent asset management solutions in the solar industry, particularly as alternative energy needs increase [3][5] Industry Context - The need for accurate weather forecasting is critical for solar asset owners to balance supply predictions with market conditions [3] - Enhanced predictive capabilities from DeepSolar Predict are expected to provide advantages such as reducing imbalance penalties from inaccurate forecasts and maximizing revenue through improved energy sale timing [8] - The global solar industry is experiencing accelerated deployment, necessitating performance optimization and cost control solutions [3][5]

Core Insights - PainReform Ltd. has signed a strategic investment agreement with LayerBio Inc. to expand into the ophthalmology market, targeting the high-volume cataract surgery segment with a new drug delivery platform [1][2][5] - LayerBio's lead product, OcuRing™-K, is a sustained-release intraocular ring designed to deliver anti-inflammatory and analgesic agents post-cataract surgery, potentially replacing traditional eye drops [3][4] - The investment agreement includes an initial investment of $600,000, with a total commitment of $3 million contingent on achieving specific milestones [4][5] Company Overview - PainReform focuses on reformulating established therapeutics and developing AI-driven energy optimization technologies through its DeepSolar platform [7][8] - The company aims to provide prolonged post-surgical pain relief while minimizing opioid reliance through its proprietary extended-release drug-delivery system [8] Market Opportunity - Approximately 3 million cataract surgeries are performed annually in the United States, presenting a significant clinical and commercial opportunity for OcuRing-K [3] - The strategic investment aligns with PainReform's mission to broaden its non-opiate pain management pipeline in high-need surgical markets [5][6] Leadership and Management - Dr. Ken Mandell, a recognized leader in sustained-release drug delivery and founder of LayerBio, will continue to lead the company [5][6] - Dr. Mandell has a strong background in ophthalmology and biotechnology, holding over 15 U.S. patents and contributing to numerous clinical trials [5]

Group 1 - Blade Ranger Ltd. achieved a first milestone in the sale of its DeepSolar operations to PainReform, resulting in the maturation of zero-exercise-price warrants [1][2] - The agreement completed in March 2025 included common shares of PainReform representing approximately 9.9% of the company's equity and about 3.08 million warrants convertible into common shares [2] - Following the milestone achievement, Blade Ranger received 685,004 warrants exercisable at an exercise price of $0.01 per share, with PainReform's shares trading at approximately $1.91, valuing the warrants at around $2 million [3] Group 2 - The CEO of Blade Ranger stated that the success of PainReform's software sales has improved the company's financial flexibility and supports accelerated business development [4] - The market value of the shares from the matured warrants is approximately NIS 4.5 million based on the current share price [4]

Core Insights - PainReform Ltd. has launched a strategic pilot program with Econergy Renewable Energy Ltd. to utilize its DeepSolar™ platform for optimizing operational efficiency and energy yield at a 92-megawatt photovoltaic plant in Romania [1][2][5] - The pilot aims to demonstrate the performance enhancements that DeepSolar™ can provide for large-scale renewable energy assets by analyzing real-time and historical data [2][6] - Successful completion of the pilot could lead to broader deployment of DeepSolar™ across Econergy's portfolio, potentially reaching a total capacity of 1 Gigawatt [3][6] Company Overview - PainReform Ltd. focuses on reformulating established therapeutics and developing AI-driven energy optimization technologies through its DeepSolar platform [7] - The company aims to apply advanced technologies to improve clean energy operations and has a dual business model that includes both healthcare and sustainable energy sectors [7] Industry Context - Econergy Renewable Energy Ltd. is a leading independent power producer in Europe, with approximately 1 Gigawatt of photovoltaic capacity either operational or under construction [4] - The partnership reflects a shared vision for innovation and sustainability in the renewable energy sector, emphasizing the importance of advanced technologies in optimizing energy production [4][6]

Company Overview - PainReform Ltd. is a clinical-stage specialty pharmaceutical company that has expanded into the Smart Energy Management (SEM) sector following the acquisition of DeepSolar, which provides AI-driven software solutions for optimizing solar energy usage [1][2][7] - The company aims to leverage its AI expertise to address new verticals, focusing on data-centric platforms that drive recurring revenue and operational scalability [6] Strategic Expansion - The expansion into the SEM sector is part of PainReform's long-term diversification strategy to tap into high-growth, tech-enabled markets [2][5] - This move aligns with global energy trends, particularly the increasing demand for decentralized and sustainable energy solutions, as well as the growing global solar capacity [2][5] DeepSolar Product Offering - DeepSolar's MyDeepSolar application utilizes machine learning and predictive analytics for real-time monitoring, yield forecasting, and performance optimization of solar systems [3][4] - The application provides homeowners with insights into their solar system's performance, maximizing returns on solar investments and optimizing energy efficiency [4] Market Context - The entry into the SEM market occurs amid significant M&A activity and institutional investments in solar and smart energy technologies, with governments increasing support for residential optimization through various incentives [5] - The optimization software is seen as a foundational tool in the transition to sustainable energy, providing both economic and environmental value [2]

Core Insights - PainReform Ltd. is expanding into the Smart Energy Management (SEM) sector following the acquisition of DeepSolar, which specializes in AI-driven software for optimizing solar energy usage [1][2][5] - This strategic move is part of PainReform's long-term diversification strategy aimed at entering high-growth, tech-enabled markets, particularly in response to the increasing global demand for decentralized and sustainable energy solutions [2][6] Company Overview - PainReform is a clinical-stage specialty pharmaceutical company that focuses on reformulating established therapeutics and developing AI-driven energy optimization technologies through its DeepSolar platform [7] - The company aims to leverage its expertise in AI to create data-centric platforms that drive recurring revenue and operational scalability in the SEM sector [6][7] Product Details - DeepSolar's MyDeepSolar application utilizes machine learning and predictive analytics for real-time monitoring, yield forecasting, and performance optimization of solar energy systems [3][4] - The application provides homeowners with insights into their solar system's performance, maximizing returns on solar investments and enhancing energy efficiency [4] Market Context - The expansion into SEM aligns with global energy trends and capitalizes on a technology platform with significant commercial scalability [5] - There is a growing trend of mergers and acquisitions in the solar and smart energy technology sectors, supported by government incentives for residential optimization [5]

[Business Update and Strategic Overview](index=1&type=section&id=Business%20Update%20and%20Strategic%20Overview) PainReform provided a 2024 year-end business update, detailing a strategic shift towards high-margin technology sectors via the DeepSolar acquisition, continued PRF-110 drug development, and Nasdaq compliance efforts [Introduction and Key Strategic Shifts](index=1&type=section&id=Introduction%20and%20Key%20Strategic%20Shifts) PainReform provided a year-end business update for 2024, highlighting a strategic shift towards investing in high-margin, technology-driven sectors, exemplified by the DeepSolar acquisition, while continuing to advance its lead drug candidate, PRF-110 - PainReform is expanding its strategy to include high-margin, technology-driven sectors[3](index=3&type=chunk) - The company provided a business update for the year ended December 31, 2024[2](index=2&type=chunk) [PRF-110 Clinical Development Update](index=1&type=section&id=PRF-110%20Clinical%20Development%20Update) The company remains committed to advancing PRF-110 for post-operative pain relief despite a temporary setback in its Phase 3 bunionectomy trial, focusing on addressing a 24-hour data gap and refining the drug's pharmacokinetics and pharmacodynamics - PainReform is committed to advancing PRF-110 for extended post-operative pain relief[3](index=3&type=chunk) - Encountered a temporary setback in Phase 3 clinical trial for PRF-110 in bunionectomy patients[3](index=3&type=chunk) - Launched R&D activities to refine PRF-110's pharmacokinetics and pharmacodynamics based on trial data[3](index=3&type=chunk) [DeepSolar Acquisition and Clean Energy Expansion](index=1&type=section&id=DeepSolar%20Acquisition%20and%20Clean%20Energy%20Expansion) PainReform acquired DeepSolar, an AI-driven solar analytics platform, marking its expansion into the high-growth clean energy sector with expectations for scalable SaaS platform revenue growth and strategic partnerships - Acquired DeepSolar, an AI-driven solar analytics platform, expanding into the clean energy sector[3](index=3&type=chunk) - Expects DeepSolar's scalable SaaS platform to drive revenue growth[3](index=3&type=chunk) - Intends to explore strategic partnerships with utility companies, solar technology providers, and smart grid operators[3](index=3&type=chunk) [Nasdaq Listing Compliance](index=1&type=section&id=Nasdaq%20Listing%20Compliance) Following a notice of non-compliance with Nasdaq's minimum shareholders' equity requirement, PainReform believes it has regained compliance after a $0.9 million ATM raise and the DeepSolar acquisition, and is committed to maintaining its listing standards - Received Nasdaq notice for non-compliance with **$2.5 million** minimum shareholders' equity[4](index=4&type=chunk) - Believes shareholders' equity now exceeds the required threshold after a **$0.9 million** ATM raise and DeepSolar acquisition[4](index=4&type=chunk) [Financial Results for the Year Ended December 31, 2024](index=1&type=section&id=Financial%20Results%20for%20the%20Year%20Ended%20December%2031%2C%202024) The company reported increased R&D expenses and a higher net loss in 2024, while general and administrative expenses decreased, maintaining a positive working capital position [Research and Development Expenses](index=1&type=section&id=Research%20and%20Development%20Expenses) R&D expenses significantly increased in 2024, primarily due to higher clinical trial and manufacturing costs, partially offset by reduced subcontractor and consultant expenses Research and Development Expenses | Year | Amount (approx.) | Change (YoY) | Primary Reason for Change | | :--- | :--- | :--- | :--- | | 2024 | $11.7 million | +$5.7 million | Increase in clinical trial costs and manufacturing expenses, offset by decrease in subcontractors and consultants' expenses | | 2023 | $6.0 million | | | [General and Administrative Expenses](index=1&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased in 2024, mainly attributable to lower insurance costs and share-based compensation expenses General and Administrative Expenses | Year | Amount (approx.) | Change (YoY) | Primary Reason for Change | | :--- | :--- | :--- | :--- | | 2024 | $3.0 million | -$0.6 million | Decrease due to insurance costs and share-based compensation expenses | | 2023 | $3.6 million | | | [Financial Income, Net](index=1&type=section&id=Financial%20Income%2C%20Net) Net financial income decreased in 2024 compared to 2023, primarily due to a reduction in cash holdings Financial Income, Net | Year | Amount (approx.) | Change (YoY) | Primary Reason for Change | | :--- | :--- | :--- | :--- | | 2024 | $93,000 | -$155,000 | Decrease due to lower cash in 2024 | | 2023 | $248,000 | | | [Net Loss and Working Capital](index=1&type=section&id=Net%20Loss%20and%20Working%20Capital) PainReform reported a higher net loss in 2024 compared to 2023, but maintained a positive working capital of approximately $2.0 million as of year-end Net Loss | Year | Amount (approx.) | Change (YoY) | | :--- | :--- | :--- | | 2024 | $14.6 million | +$5.3 million | | 2023 | $9.3 million | | - Company had a positive working capital of approximately **$2.0 million** as of December 31, 2024[8](index=8&type=chunk) [Company Information and Disclosures](index=1&type=section&id=Company%20Information%20and%20Disclosures) This section details the filing of the 2024 annual report, provides an overview of PainReform's business, includes forward-looking statements, and lists contact information [Annual Report Filing](index=1&type=section&id=Annual%20Report%20Filing) PainReform filed its annual report on Form 20-F for the year ended December 31, 2024, with the SEC and made it available on its investor relations website, offering hard copies to shareholders upon request - Annual report on Form 20-F for 2024 filed with SEC and available on investor relations website[9](index=9&type=chunk) - Hard copies of the annual report are available to shareholders upon request[9](index=9&type=chunk) [About PainReform](index=2&type=section&id=About%20PainReform) PainReform is a specialty pharmaceutical company focused on reformulating established therapeutics, utilizing a proprietary extended-release drug-delivery system for post-surgical pain relief, and recently expanded into AI-driven solar analytics with the DeepSolar acquisition - PainReform is a specialty pharmaceutical company focused on reformulating established therapeutics[10](index=10&type=chunk) - Develops a proprietary extended-release drug-delivery system for post-surgical pain relief[10](index=10&type=chunk) - Acquired DeepSolar, an AI-driven solar analytics technology, in March 2025[10](index=10&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The press release includes forward-looking statements regarding PainReform's expectations, beliefs, and intentions, particularly concerning the DeepSolar acquisition's benefits and market opportunities, and cautions readers about inherent risks and uncertainties - Press release contains forward-looking statements about PainReform's expectations, beliefs, and intentions, including anticipated benefits of DeepSolar acquisition[11](index=11&type=chunk) - Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially[11](index=11&type=chunk) [Contact Information](index=2&type=section&id=Contact%20Information) Contact details for investor relations (Crescendo Communications) and PainReform's Chairman and interim CEO, Dr. Ehud Geller, are provided for inquiries - Contact information for investor relations and company management is provided[12](index=12&type=chunk)

Financial Performance and Risks - The company has never generated revenues and may never be profitable, indicating a significant risk for investors[51]. - The independent registered public accounting firm's report contains an explanatory paragraph regarding substantial doubt about the company's ability to continue as a going concern[51]. - The company has incurred significant losses and negative cash flows from operations since inception and expects to continue incurring losses for the foreseeable future[54]. - As of December 31, 2024, the company had total cash and cash equivalents of $4.2 million, raising substantial doubt about its ability to continue as a going concern[63]. - The company incurred losses of approximately $14.6 million, $9.3 million, and $8.8 million for the years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $56.5 million as of December 31, 2024[64]. - The company expects to continue incurring losses for the foreseeable future, particularly as it initiates clinical trials for PRF-110 and expands its DeepSolar business[65]. - The company will require substantial additional funding to support ongoing operations and product development, with no committed external sources of funds currently available[68]. - Future capital requirements will depend on the costs and outcomes of clinical trials, regulatory reviews, and commercialization activities for PRF-110 and the DeepSolar business[72]. - The company may need to raise additional capital through equity offerings or debt financings, which could dilute shareholder ownership and impose operational restrictions[74]. Product Development and Clinical Trials - The company is dependent on the success of its initial product candidate, PRF-110, and any delays in obtaining approval or commercialization could materially harm the business[54]. - The company has limited experience in conducting and managing clinical trials necessary for obtaining regulatory approvals, which poses a risk to its drug development efforts[54]. - The Phase 3 clinical trial for PRF-110 did not meet its primary endpoint, necessitating further research and development to refine its pharmacokinetics and pharmacodynamics[77]. - The company has not yet commercialized any pharmaceutical products and may never achieve profitability, depending on various factors including regulatory approvals and market acceptance[82]. - The company relies on third-party service providers for clinical trials, and any failure on their part could delay or prevent the development and commercialization of its products[95]. - The company has faced issues with its former contract manufacturing organization (CMO) in Israel, leading to a shift of manufacturing operations to North America[95]. - The company commenced its Phase 3 clinical trial of PRF-110 in March 2023 after overcoming manufacturing process issues[95]. - Market acceptance of PRF-110 will depend on its advantages over existing treatments and the effectiveness of marketing efforts[98]. Competition and Market Conditions - The company may face intense competition in the AI software market, which could limit its ability to develop a customer base and generate revenue[54]. - The pharmaceutical industry is highly competitive, and the company may face challenges if competitors develop more effective or less expensive products[99]. - The company faces intense competition from established players like Power Factors and Meteocontrol, which have greater financial resources and market presence[144]. Regulatory and Legislative Environment - Legislative and regulatory changes in the U.S. healthcare system could impact the profitability and marketability of PRF-110[106]. - The Bipartisan Budget Act of 2018 increased the point-of-sale discount for Medicare Part D beneficiaries from 50% to 70% during the coverage gap[108]. - The Budget Control Act of 2011 led to aggregate reductions in Medicare payments to providers of up to 2% per fiscal year, effective through 2030[109]. - The Inflation Reduction Act of 2022 allows Medicare to negotiate prices for certain high-expenditure drugs, with a maximum of 20 drugs subject to negotiation by 2029[110]. - Legislative changes may result in additional reductions in Medicare and healthcare funding, impacting the pricing and availability of drug products[112]. DeepSolar Business and Market Adoption - In March 2025, the company acquired DeepSolar, an AI-driven solar analytics technology, which is in the early stage of commercialization and presents unpredictable future performance[60]. - The DeepSolar business, acquired in March 2025, is in early commercialization stages and has generated limited revenues to date[125]. - The market for the DeepSolar solution is new and unproven, with future success dependent on market adoption and customer acceptance[127]. - The AI-based software market is relatively new and may face limited growth, impacting the demand for DeepSolar technology[129]. - Regulatory scrutiny over AI technologies may increase, potentially affecting the adoption and marketability of the DeepSolar solution[130]. - The sales cycle for the DeepSolar solution is long and unpredictable, requiring significant time and expense for customer evaluation and education[133]. - The company has generated limited revenue to date and lacks adequate sales and marketing infrastructure for the DeepSolar solution[135]. - The future success of the DeepSolar solution is uncertain, as it depends on the widespread adoption of solar energy technologies and sufficient market demand[151]. - The company must enhance the DeepSolar brand and increase market awareness to achieve broader market acceptance[142]. Internal Controls and Compliance - The company has identified a material weakness in its internal control over financial reporting, which could impair the reliability of its financial statements[58]. - A material weakness in internal control over financial reporting has been identified, which could impair the company's ability to produce timely and accurate financial statements[216]. - The material weakness is attributed to insufficient finance staff and incomplete segregation of duties[217]. - Management concluded that internal control over financial reporting was ineffective as of December 31, 2024[217]. - Company plans to hire additional accounting and finance personnel or provide training for new hires to remediate the material weakness[218]. - There is no assurance that remediation measures will be sufficient to prevent future material weaknesses[218]. - Failure to maintain effective internal control could lead to restatements of financial statements and loss of investor confidence[218]. - Independent registered public accounting firm will not attest to the effectiveness of internal controls until the company is no longer an "emerging growth company"[219]. - Inability to comply with Section 404 of the Sarbanes-Oxley Act may result in adverse reports from the independent registered public accounting firm[219]. - Failure to remediate existing weaknesses could negatively affect the market price of the company's ordinary shares and warrants[219]. - Potential investigations by Nasdaq, SEC, or other regulatory authorities could arise from ineffective internal controls[219]. Geopolitical and Economic Factors - The ongoing geopolitical instability, including military conflicts, may adversely affect the company's operations and market conditions[58]. - Political instability in Israel, including recent conflicts, may adversely affect the company's business conditions and financial results[175]. - The company operates in a period of economic uncertainty and capital markets disruption, significantly impacted by geopolitical instability, including military conflicts in Israel and Ukraine[204]. - The company is exposed to various international legal and political risks due to its global operations[195]. Intellectual Property and Technology Risks - The company relies on proprietary technology and faces risks related to intellectual property rights and potential infringement claims[153]. - The company has patent protection for PRF-110, but its DeepSolar business lacks any patents or patent applications, which may adversely affect its ability to commercialize products[156]. - Changes in patent laws or their interpretation could diminish the company's ability to protect its inventions and affect the value of its intellectual property[157]. - The patent prosecution process is expensive and complex, and the company may not be able to maintain or enforce all necessary patent applications[158]. - The natural expiration of a utility patent in the U.S. is generally 20 years from its earliest effective filing date, which limits the lifespan of patent protection[159]. - The company relies on third parties for its intellectual property, increasing the risk of misappropriation or disclosure of trade secrets[164]. Employee and Organizational Challenges - The loss of key personnel could negatively impact the company's business and product development capabilities[85]. - The company may incur significant costs to attract and retain qualified employees, which is critical for its future success[86]. - The company may face operational inefficiencies if it fails to manage growth effectively, which could lead to increased costs and impact financial results[138]. - The company may face challenges in enforcing non-competition agreements with former employees, potentially affecting competitive positioning[184]. - Compensation for employee inventions may be determined by the Israeli Patents Office, impacting future revenue from R&D[185]. - Shareholder rights are governed by Israeli law, which may differ from U.S. corporate governance standards[186].

Core Viewpoint - PainReform Ltd. is advancing its clinical development of PRF-110 while expanding into the clean energy sector through the acquisition of DeepSolar, aiming for long-term shareholder value and revenue growth [2][9]. Business Update - The company is focused on the clinical development of PRF-110, targeting post-operative pain relief, and has faced a temporary setback in its Phase 3 clinical trial for bunionectomy patients [2]. - PainReform has launched R&D activities to refine the pharmacokinetics and pharmacodynamics of PRF-110 based on trial data [2]. Financial Performance - Research and development expenses increased to approximately $11.7 million for the year ended December 31, 2024, from approximately $6.0 million in 2023, primarily due to higher clinical trial and manufacturing costs [4]. - General and administrative expenses decreased to approximately $3.0 million in 2024 from approximately $3.6 million in 2023, mainly due to lower insurance and share-based compensation costs [5]. - The net loss for 2024 was approximately $14.6 million, compared to a net loss of approximately $9.3 million in 2023 [6]. Compliance and Equity - PainReform received a notice from Nasdaq regarding non-compliance with the minimum shareholders' equity requirement of $2.5 million but believes its equity now exceeds this threshold following a $0.9 million raise and the DeepSolar acquisition [3]. Company Overview - PainReform is a specialty pharmaceutical company focused on reformulating established therapeutics and has recently acquired DeepSolar, an AI-driven solar analytics platform [9].