Chemomab Therapeutics(CMMB) - 2024 Q2 - Quarterly Report

Interim Condensed Consolidated Financial Statements This section presents the unaudited interim condensed consolidated financial statements and their accompanying notes Interim Condensed Consolidated Balance Sheets The balance sheet reflects a decrease in total assets and shareholders' equity by June 30, 2024, primarily driven by reduced cash and accumulated deficit Consolidated Balance Sheet Highlights (in USD thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | 5,036 | 9,292 | | Total current assets | 13,455 | 20,897 | | Total assets | 14,544 | 22,151 | | Liabilities & Equity | | | | Total current liabilities | 4,308 | 4,838 | | Total liabilities | 4,559 | 5,154 | | Accumulated deficit | (96,177) | (88,678) | | Total shareholders' equity | 9,985 | 16,997 | | Total liabilities and shareholders' equity | 14,544 | 22,151 | - The number of authorized ordinary shares increased from 650,000,000 to 4,650,000,000 between December 31, 2023, and June 30, 2024, with issued and outstanding shares also increasing from 284.1 million to 287.2 million[2] Interim Condensed Consolidated Statements of Operations The company significantly reduced its net loss for the six months ended June 30, 2024, primarily driven by substantial decreases in operating expenses Statement of Operations Summary (in USD thousands) | Metric | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :--- | :--- | :--- | | Research and development | 6,080 | 11,907 | | General and administrative | 1,736 | 5,337 | | Total operating expenses | 7,816 | 17,244 | | Net loss for the period | 7,499 | 16,723 | | Basic and diluted loss per Ordinary Share | $0.026 | $0.076 | Quarterly Statement of Operations Summary (in USD thousands) | Metric | Three months ended June 30, 2024 | Three months ended June 30, 2023 | | :--- | :--- | :--- | | Research and development | 2,928 | 5,020 | | General and administrative | 840 | 3,175 | | Total operating expenses | 3,768 | 8,195 | | Net loss for the period | 3,631 | 7,970 | | Basic and diluted loss per Ordinary Share | $0.013 | $0.036 | Interim Condensed Consolidated Statements of Changes in Equity Shareholders' equity decreased significantly in the first half of 2024, primarily due to the net loss, partially offset by share-based compensation and issuances Changes in Equity for Six Months Ended June 30, 2024 (in USD thousands) | Description | Amount | | :--- | :--- | | Balance as of January 1, 2024 | 16,997 | | Share-based compensation | 355 | | Issuance of shares | 132 | | Net loss for the period | (7,499) | | Balance as of June 30, 2024 | 9,985 | Changes in Equity for Six Months Ended June 30, 2023 (in USD thousands) | Description | Amount | | :--- | :--- | | Balance as of January 1, 2023 | 36,223 | | Share-based compensation | 1,123 | | Issuance of shares, net | 1,368 | | Net loss for the period | (16,723) | | Balance as of June 30, 2023 | 21,991 | Interim Condensed Consolidated Statements of Cash Flow Operating cash outflow significantly decreased for the six months ended June 30, 2024, with overall cash and equivalents declining to $5.1 million Cash Flow Summary (in USD thousands) | Cash Flow Activity | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | (7,191) | (14,672) | | Net cash provided by investing activities | 2,801 | 10,164 | | Net cash provided by financing activities | 132 | 1,368 | | Decrease in cash, cash equivalents and restricted cash | (4,258) | (3,140) | | Cash, cash equivalents and restricted cash at end of period | 5,110 | 10,456 | Notes to the Interim Condensed Consolidated Financial Statements These notes provide essential context to the financial statements, detailing the company's operational status, accounting policies, contingencies, and subsequent financing events Note 1 - General This note outlines Chemomab's status as a clinical-stage biotech, its reliance on shareholder funding, and its projected cash runway through early 2026 - The company is a clinical-stage biotech without approved products and relies on shareholder funding for its operations[14][15] - Management believes that after a July 2024 fundraising, its existing liquidity will fund operations through the beginning of 2026[15] - Under an 'At the Market' (ATM) agreement with Roth Capital, the company sold 1,954,455 ADSs for net proceeds of $1.674 million between October 2023 and June 2024[16] Note 2 - Basis of Presentation and Significant Accounting Policies This note confirms the unaudited interim financial statements adhere to U.S. GAAP and SEC rules, with no significant accounting policy changes since 2023 - The financial statements are unaudited and prepared in accordance with U.S. GAAP and SEC rules for interim reporting[18] - The preparation of financial statements requires management to make estimates and assumptions, and actual results could differ[19] Note 3 - Contingencies This note details an ongoing dispute with the Israeli Tax Authority regarding a VAT audit for 2017-2022, which the company has appealed to district court - The company is in an ongoing dispute with the Israeli Tax Authority (ITA) over a VAT audit for 2017-2022, and has appealed the ITA's assessment to the Israeli district court[20][21] Note 4 - Subsequent events This note discloses a significant private placement completed on July 30, 2024, raising $10.0 million through the sale of ADSs and pre-funded warrants - On July 30, 2024, the company closed a private placement, selling $10.0 million of its ADSs and pre-funded warrants to new and existing investors[23]