Oramed(ORMP) - 2025 Q2 - Quarterly Report

Financial Performance - Revenues for the six months ended June 30, 2025, were $2,000,000, compared to $0 for the same period in 2024, indicating a significant increase[27]. - Net income for the six months ended June 30, 2025, was $5,618,000, compared to $10,738,000 for the same period in 2024, showing a decrease of 48%[27]. - Basic income per share of common stock was $0.14 for the six months ended June 30, 2025, compared to $0.26 for the same period in 2024[27]. - Financial income, net, for the six months ended June 30, 2025, was $12,808,000, compared to $19,322,000 for the same period in 2024, a decrease of 34%[27]. - The company reported a net income of $5,618,000 for the six months ended June 30, 2025, compared to $10,738,000 in the same period of 2024[204]. - The gross profit for the six months ended June 30, 2025, was $13,000, with a cost of revenue of $1,987,000[204]. Assets and Liabilities - Total assets increased to $161,684,000 as of June 30, 2025, compared to $155,278,000 as of December 31, 2024, reflecting a growth of 4%[22]. - Total current liabilities decreased to $3,693,000 as of June 30, 2025, from $5,685,000 as of December 31, 2024, a reduction of 35%[22]. - The company's accumulated deficit improved to $(170,970,000) as of June 30, 2025, from $(176,616,000) as of December 31, 2024, indicating a reduction in losses[22]. - Total stockholders' equity increased to $154,529,000 as of June 30, 2025, from $146,265,000 as of December 31, 2024, reflecting a growth of 6%[22]. Research and Development - Research and development expenses rose to $3,240,000 for the six months ended June 30, 2025, compared to $2,621,000 for the same period in 2024, an increase of 24%[27]. - Research and development expenses for the six months ended June 30, 2025, totaled $3,240,000, an increase from $2,621,000 in the same period of 2024[204]. - Research and development expenses for the three months ended June 30, 2025, decreased by 28% to approximately $1,034,000 compared to approximately $1,442,000 for the same period in 2024[215]. Cash Flow - Total net cash used in operating activities was $(7,054,000), a significant decline from $600,000 in the previous year[34]. - Total net cash used in investing activities was $(31,237,000), compared to a cash inflow of $124,653,000 in 2024[34]. - The company reported cash and cash equivalents at the end of the period of $15,797,000, down from $84,753,000 at the end of June 2024[34]. Investments and Acquisitions - The company acquired approximately 16.65% of Alpha Tau Medical Ltd. for $36,900,000 in April 2025[48]. - The company invested approximately $36.9 million to acquire 14,110,121 shares (16.65%) of Alpha Tau, with a fair value increase to $44.298 million by June 30, 2025[123][127]. - The company invested $1,500 to acquire 150,000 shares of Pelthos Therapeutics Inc. common stock[160]. - The Company entered into a loan agreement for the Hapisga Project, amounting to $22,650,000, secured by a property valued at approximately $890,000,000[202]. Joint Ventures and Partnerships - The joint venture with Hefei Tianhui Biotech Co., Ltd. (HTIT) aims to develop and commercialize oral insulin, with an initial investment of $40,000,000 from HTIT and $7,500,000 from the company[39]. - The second closing of the joint venture is contingent on Nasdaq listing approval and involves an additional investment of $20,000,000 from HTIT and $7,500,000 from the company[42]. - The company is currently evaluating alternative partners and pathways to advance its oral insulin program independently due to delays in regulatory approvals[46]. - The company has paused plans to initiate a Phase 3 clinical trial in the U.S. pending further clarity on the joint venture with HTIT[46]. Stock and Equity - The company repurchased and retired 164,000 shares of common stock during the six months ended June 30, 2025[30]. - The Company has authorized a stock buyback program allowing repurchases up to $20,000, with 163,869 shares repurchased for a total of $371 during the three and six months ended June 30, 2025[144]. - The Company granted 1,023,540 RSUs to employees with a total fair value of $2,465,430 based on the share price on the grant dates[136]. - The Company recognized stock-based compensation expense of $197 for the six months ended June 30, 2025, related to PSUs granted to executive officers[140]. Financial Instruments and Valuation - The fair value of the Tranche A Note was $13,938 million, an increase from $13,714 million as of December 31, 2024[83]. - The fair value of the Tranche B Note was $15,818 million as of June 30, 2025, compared to $18,322 million as of December 31, 2024[97]. - The Company received $3,722 million from Scilex as repayment of the Tranche B Note, which included $3,125 million of principal and $597 million of accrued interest[97]. - The fair value of the Royalty Purchase Agreement was calculated using a discount rate between 127.4% to 129.8%[96]. Regulatory and Compliance - The company is assessing the impact of the One Big Beautiful Bill Act on its consolidated financial statements[165]. - The Company has no further obligations to the Israel Innovation Authority after fulfilling a payment of $2.046 million related to IIA grants[132].