Silexion Therapeutics Corp(SLXN) - 2025 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION Financial Statements The company reported an increased net loss for Q1 2025, primarily due to higher G&A expenses, while significantly improving liquidity and balance sheet strength, despite a 'going concern' warning Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $6,152 | $1,187 | | Total Assets | $8,308 | $2,863 | | Total Liabilities | $5,722 | $6,852 | | Total Shareholders' Equity (Deficiency) | $2,586 | $(3,989) | Condensed Consolidated Statements of Operations (Unaudited) | Account | Three months ended March 31, 2025 (in thousands) | Three months ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Research and development | $590 | $961 | | General and administrative | $1,060 | $289 | | Operating Loss | $(1,650) | $(1,250) | | Net Loss | $(1,735) | $(1,423) | | Loss Per Share (Basic and Diluted) | $0.26 | $12.29 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Three months ended March 31, 2025 (in thousands) | Three months ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,453) | $(1,752) | | Net cash used in investing activities | $(6) | $(6) | | Net cash provided by financing activities | $7,432 | $* | | Net increase (decrease) in cash | $4,973 | $(1,758) | - Management has concluded there is substantial doubt about the Company's ability to continue as a going concern for at least 12 months from the issuance date of the financial statements, due to recurring losses and negative operating cash flows[45][46][47] - In January 2025, the company raised approximately $5.0 million in gross proceeds from a public offering of shares and warrants, and an additional $3.3 million in gross proceeds from an induced warrant exercise transaction[62][67] - On March 13, 2025, the company settled its outstanding convertible promissory note with EarlyBird by extinguishing the $880,000 balance through a cash payment of $551,000 and the issuance of 277,777 ordinary shares[72] Management's Discussion and Analysis of Financial Condition and Results of Operations The clinical-stage biotech company's Q1 2025 net loss increased due to higher G&A expenses, despite improved liquidity from recent financings, but faces a 'going concern' risk with limited cash reserves - The company is a clinical-stage, oncology-focused biotechnology company developing treatments for cancers driven by the KRAS oncogene. Its lead product candidate is SIL204, an siRNA-based therapeutic for locally advanced pancreatic cancer[98] - Research and development expenses decreased by 40% to $0.6 million in Q1 2025 from $1.0 million in Q1 2024, mainly due to a $0.5 million reduction in subcontractor costs related to API development activities[114] - General and administrative expenses increased by 266.7% to $1.1 million in Q1 2025 from $0.3 million in Q1 2024, primarily due to higher payroll and a $0.4 million increase in professional services costs associated with being a public company[115] - Management estimates that existing cash and cash equivalents are sufficient to fund business operations only into the fourth quarter of 2025, necessitating additional financing[162] - The company has raised capital through multiple channels since the August 2024 Business Combination, including a $2.0M PIPE, $3.1M from an Equity Line of Credit (ELOC), a $5.0M public offering, and a $3.3M induced warrant exercise[100][101] - As of March 31, 2025, the company had received a total of $5.8 million in royalty-bearing grants from the Israeli Innovation Authority (IIA), which are repayable at a rate of 3.0% to 5.0% of future product sales[147][148] Quantitative and Qualitative Disclosures about Market Risk As a "smaller reporting company," the company is exempt from market risk disclosures and anticipates no material impact from interest rate fluctuations on its interest-bearing bank accounts - As a "smaller reporting company" as defined by the SEC, the company is exempt from the disclosures required under Item 3 of Part I of Form 10-Q[174] Controls and Procedures Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2025, the company's chief executive officer and chief financial officer concluded that the disclosure controls and procedures were effective[177] - There were no changes in the company's internal control over financial reporting during the fiscal quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[178] PART II - OTHER INFORMATION Legal Proceedings The company reports no legal proceedings - None[180] Risk Factors There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - As of the date of this Quarterly Report, there have been no material changes to the risk factors described in the "Part I, Item 1.A Risk Factors" section of the 2024 Annual Report[181] Unregistered Sales of Equity Securities and Use of Proceeds The company reports recent sales of unregistered securities related to an induced warrant exercise and a marketing agreement settlement, conducted in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D - The company issued unregistered securities in connection with the Induced Warrant Exercise Transaction and the Settlement of Amounts Due Under Marketing Agreement with EarlyBirdCapital. These sales were made in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D[183] Defaults Upon Senior Securities The company reports no defaults upon senior securities - None[185] Mine Safety Disclosures This item is not applicable to the company - Not applicable[186] Other Information The company reports no other information - None[187] Exhibits This section lists the exhibits filed with the quarterly report, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and Inline XBRL documents - The report includes exhibits such as Certifications of the Principal Executive Officer and Principal Financial Officer (pursuant to SOX Sections 302 and 906) and Inline XBRL data files[189]