Entera Bio(ENTX) - 2024 Q4 - Annual Report

Financial Performance - Entera Bio Ltd. reported revenues of $181,000 for the year ended December 31, 2024, compared to no revenues in 2023[500]. - The company incurred a net loss of $9,541,000 in 2024, an increase from a net loss of $8,889,000 in 2023, reflecting a 7.3% increase in losses year-over-year[500]. - Total operating expenses for 2024 were $9,594,000, up from $8,891,000 in 2023, indicating an increase of approximately 7.9%[500]. - The net loss for the year ended December 31, 2024, was $9,541,000, compared to a net loss of $8,889,000 in 2023, representing an increase of approximately 7.3%[508]. - The company reported a total loss before taxes of $9,527 for the year ended December 31, 2024, compared to $8,860 in 2023[625]. Cash and Assets - Cash and cash equivalents decreased to $8,660,000 as of December 31, 2024, down from $11,019,000 in 2023, representing a decline of 21.4%[497]. - The total assets of Entera Bio Ltd. decreased to $9,390,000 in 2024 from $11,765,000 in 2023, a reduction of 20.2%[497]. - The company’s accumulated deficit increased to $113,927,000 in 2024 from $104,386,000 in 2023, reflecting a rise of 9.8%[497]. - Cash flows used in operating activities decreased to $6,818,000 in 2024 from $7,310,000 in 2023, indicating improved cash management[508]. - The company expects its available funds to support operations into the third quarter of 2026, excluding the initiation of the Phase 3 study for EB613[513]. Shareholder Equity and Capital Raising - The number of shares outstanding increased to 38,837,220 as of December 31, 2024, from 35,476,341 in 2023, marking an increase of 6.7%[497]. - The company raised $3,960,000 through ATM programs in 2024, a significant increase from $5,000 in 2023, indicating enhanced financing activities[508]. - An aggregate of 2,236,126 ordinary shares were issued under the Leerink ATM Program for net proceeds of $3,840 at a weighted average price of $1.77 per share during the year ended December 31, 2024[589]. - The Company raised approximately $6.6 million from a private offering (2023 PIPE) by issuing 6,662,389 ordinary shares at a purchase price of $0.835 per unit[592]. - The Company issued 143,049 ordinary shares to non-executive board members in lieu of cash board fees, valued at $263 based on the market price at the grant date[600]. Operational Developments - The company is preparing to initiate a Phase 3 registrational study for its product candidate EB613, which is aimed at treating post-menopausal women with low bone mineral density[511]. - The ongoing conflict in Israel has had an immaterial impact on the company's operations and financial condition during 2024 and 2023[515]. - The Company entered into a collaboration agreement with OPKO, granting an exclusive license for developing a GLP-1/glucagon dual agonist, with a revenue sharing of 40% for Entera Bio and 60% for OPKO[637]. - The Company has entered into a research collaboration agreement with OPKO Biologics, Inc., recognizing total expenses of $71 for the year ended December 31, 2024[580]. Compensation and Expenses - The company incurred share-based compensation expenses of $2,556,000 in 2024, up from $1,689,000 in 2023, reflecting increased employee compensation costs[508]. - The Company has not paid any cash dividends and does not anticipate doing so in the foreseeable future[549]. - The Company incurred transaction costs of approximately $1,000 related to the issuance of Broker Warrants and Finder Warrants[599]. Lease and Tax Information - The Company has a total lease liability of $272 as of December 31, 2024, with future minimum lease payments totaling $301[574]. - As of December 31, 2024, the deferred tax assets were $20,873, with a valuation allowance of the same amount, indicating uncertainty in realization[630]. - The Company has a weighted-average remaining lease term of 1.54 years and a weighted-average discount rate of 14% for its operating leases as of December 31, 2024[573]. Stock Options and Warrants - As of December 31, 2024, Entera Bio Ltd. had a total of 7,652,654 outstanding options with a weighted average exercise price of $2.32, compared to 7,105,414 options at $2.57 in 2023[615]. - The aggregate intrinsic value of outstanding options as of December 31, 2024, was $3,632, while the intrinsic value of exercisable options was $2,255[615]. - The company granted 2,116,331 options in 2024 at an average exercise price of $1.49, compared to 1,798,884 options at $0.78 in 2023[615]. - The exercise price for Investor Warrants is set at $1.00 per share, which are immediately exercisable and expire five years from the date of issuance[594].