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Purple Biotech .(PPBT) - 2025 Q2 - Quarterly Report

Financial Statements Condensed Consolidated Unaudited Interim Statements of Financial Position The company's financial position as of June 30, 2025, shows a decrease in total assets and equity compared to December 31, 2024, primarily driven by a reduction in cash and cash equivalents, alongside a notable decrease in current liabilities Key Financial Position Data (USD thousand) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------ | :---------------- | :----- | | Total assets | 34,378 | 37,038 | (2,660) | | Total current assets | 6,313 | 8,908 | (2,595) | | Cash and cash equivalents | 4,736 | 7,401 | (2,665) | | Total current liabilities | 2,189 | 3,987 | (1,798) | | Warrants (liability) | 267 | 1,149 | (882) | | Total equity | 32,049 | 32,911 | (862) | Condensed Consolidated Unaudited Interim Statements of Operations and Other Comprehensive Income For the six months ended June 30, 2025, the company significantly reduced its operating loss and net loss compared to the prior year, primarily due to a substantial decrease in research and development expenses Key Operations Data (USD thousand) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :---------------------------------- | :--------------------------- | :--------------------------- | :----------- | | Research and development expenses | 1,312 | 5,814 | (4,502) | | Sales, general and administrative expenses | 1,329 | 1,840 | (511) | | Operating loss | 2,641 | 7,856 | (5,215) | | Loss for the period | 1,545 | 6,196 | (4,651) | | Basic and diluted loss per Share (USD) | 0.003 | 0.023 | (0.020) | | Basic and diluted loss per ADS (USD) | 0.57 | 4.6 | (4.03) | Condensed Consolidated Unaudited Interim Statements of Changes in Equity The company's total equity decreased from January 1, 2025, to June 30, 2025, influenced by accumulated losses, partially offset by proceeds from ADS issuances and share-based payments Key Equity Changes (USD thousand) | Metric | Balance as of Jan 1, 2025 | Balance as of June 30, 2025 | Change | | :------------------------------------ | :------------------------ | :-------------------------- | :----- | | Total equity | 32,911 | 32,049 | (862) | | Issuance of ADSs, net of issuance costs | - | 531 | 531 | | Share-based payments | - | 152 | 152 | | Loss for the period | - | (1,545) | (1,545) | Condensed Consolidated Unaudited Interim Statements of Cash Flows The company experienced a net decrease in cash and cash equivalents for the six months ended June 30, 2025, primarily due to cash used in operating activities, although the net cash outflow from operations significantly improved year-over-year Key Cash Flow Data (USD thousand) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :---------------------------------- | :--------------------------- | :--------------------------- | :----------- | | Net cash used in operating activities | (3,522) | (9,058) | 5,536 | | Net cash provided by investing activities | 364 | 399 | (35) | | Net cash provided by financing activities | 469 | 701 | (232) | | Net decrease in cash and cash equivalents | (2,689) | (7,958) | 5,269 | | Cash and cash equivalents at end of period | 4,736 | 6,524 | (1,788) | Notes to the Condensed Consolidated Unaudited Interim Financial Statements Note 1 - General This note provides an overview of Purple Biotech Ltd.'s business as a clinical-stage oncology company, details its financial condition including accumulated losses and going concern assessment, and discusses the potential impact of the 'Iron Swords' war in Israel Reporting Entity and Business Overview - Purple Biotech Ltd. is a clinical-stage company developing first-in-class therapies to overcome tumor immune evasion and drug resistance11 - The company's oncology pipeline includes CM24 (monoclonal antibody blocking CEACAM1), NT219 (dual inhibitor targeting IRS1/2 and STAT3), and CAPTN-3 (preclinical tri-specific antibody platform)11 - The Group comprises Purple Biotech Ltd. and its subsidiaries: TyrNovo Ltd., FameWave Ltd., Immunorizon Ltd., and Purple Biotech GmbH (currently dissolving)111213 Financial Condition and Going Concern - As of June 30, 2025, the Group has incurred accumulated losses of USD 146.2 million, primarily due to development efforts13 - Operations have been financed mainly through private and public financing rounds, raising a total of USD 109.2 million net of issuance expenses13 - Management believes existing cash will be sufficient to fund operations for at least the next 12 months, with plans for out-licensing, alternative financing, or expenditure reduction thereafter, though there is no assurance of securing additional capital on favorable terms1415 Impact of "Iron Swords" War - The 'Iron Swords' war in October 2023 has led to a decrease in Israel's economic activity, supply chain disruptions, manpower shortages, and currency fluctuations15 - Hostilities could adversely affect the Company's operations, results, and ability to raise capital, despite most manufacturing and R&D being conducted outside Israel15 - The duration and severity of the ongoing conflict and its effects on the Company's business, operations, and financial conditions are currently unpredictable16 Note 2 - Basis of Preparation These condensed consolidated interim financial statements are prepared in accordance with IAS 34 and should be read in conjunction with the annual financial statements, with management's judgments and estimates remaining consistent - The consolidated financial statements are prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the annual financial statements for the year ended December 31, 202417 - The significant judgments and principal assumptions used in the estimation of uncertainty are consistent with those applied in the Annual Financial Statements20 Note 3 - Material Accounting Policies The accounting policies applied in these interim financial statements are consistent with those used in the Group's Annual Financial Statements - The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied by the Group in its Annual Financial Statements21 Note 4 - Capital and Reserves During the first six months of 2025, the company issued 248 thousand ADSs under its ATM program, generating USD 664 thousand in gross proceeds, net of USD 27 thousand in issuance costs ADS Issuance Summary | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | | ADSs Issued (thousands) | 248 | 180 | | Gross Proceeds (USD thousand) | 664 | 936 | | Issuance Costs (USD thousand) | 27 | 37 | Note 5 - Financial Instruments The company's financial instruments measured at fair value include securities and warrants, with the financial liability for warrants significantly decreasing due to revaluation Financial Instruments Measured at Fair Value (USD thousand) | Instrument | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | Securities (Level 3) | 326 | 275 | | Financial liability of July 2024 warrants (Level 3) | 267 | 1,149 | - The financial liability of the July 2024 warrants decreased by USD 882 thousand due to revaluation during the period25 - Warrants are valued using the Black-Scholes method, considering expected term, volatility, annual risk-free interest, and dividend yield25 Note 6 - Share-based payments The company granted USD 26 thousand in share-based payments during the three months ended June 30, 2025, and recorded gross expenses of USD 152 thousand for the six-month period - Share-based payments amounting to USD 26 thousand were granted during the three-month period ended June 30, 202526 - Gross expenses of USD 152 thousand for share-based payments were recorded for the six months ended June 30, 2025, net of USD 12 thousand forfeited26