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Can-Fite(CANF) - 2025 Q2 - Quarterly Report
Can-FiteCan-Fite(US:CANF)2025-08-28 12:49

Condensed Consolidated Balance Sheets The company's financial position shows a decrease in total assets and shareholders' equity, primarily driven by reduced short-term deposits and accumulated deficit Assets The company's total assets decreased from $9,120 thousand as of December 31, 2024, to $7,720 thousand as of June 30, 2025, primarily driven by a reduction in short-term deposits and cash and cash equivalents | ASSETS (U.S. dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $6,454 | $4,825 | | Short-term investment | $2 | $5 | | Short term deposits | $- | $3,057 | | Prepaid expenses and other current assets | $1,168 | $1,095 | | Total current assets | $7,624 | $8,982 | | Operating lease right of use assets | $91 | $111 | | Property, plant and equipment, net | $5 | $27 | | Total non-current assets | $96 | $138 | | Total assets | $7,720 | $9,120 | - Total assets decreased by $1,400 thousand (15.3%) from December 31, 2024, to June 30, 20254 - Short-term deposits decreased significantly from $3,057 thousand to $0, while cash and cash equivalents increased by $1,629 thousand4 Liabilities and Shareholders' Equity Total liabilities decreased slightly, while shareholders' equity saw a notable reduction, primarily due to the accumulated deficit from net losses, despite increases in additional paid-in capital from share issuances | LIABILITIES AND SHAREHOLDERS' EQUITY (U.S. dollars in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------- | :------------ | :---------------- | | Trade payables | $1,152 | $618 | | Current maturity of operating lease liability | $57 | $53 | | Deferred revenues (current) | $405 | $405 | | Other accounts payable | $506 | $976 | | Total current liabilities | $2,120 | $2,052 | | Long - term operating lease liability | $33 | $51 | | Deferred revenues (non-current) | $1,383 | $1,581 | | Total long-term liabilities | $1,416 | $1,632 | | Total liabilities | $3,536 | $3,684 | | Additional paid-in capital | $174,294 | $170,670 | | Accumulated other comprehensive income | $1,127 | $1,127 | | Accumulated deficit | $(171,237) | $(166,361) | | Total shareholders' equity | $4,184 | $5,436 | | Total liabilities and shareholders' equity | $7,720 | $9,120 | - Total shareholders' equity decreased by $1,252 thousand (23.0%) from December 31, 2024, to June 30, 20257 - Additional paid-in capital increased by $3,624 thousand, while the accumulated deficit worsened by $4,876 thousand7 Condensed Consolidated Statements of Net Loss The company reported an increased net loss for the six months ended June 30, 2025, driven by higher operating expenses despite reduced revenues Operating Results The company experienced an increased net loss for the six months ended June 30, 2025, compared to the same period in 2024, driven by higher research and development and general and administrative expenses, despite a decrease in revenues | (U.S. dollars in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Revenues | $202 | $316 | | Research and development expenses | $(3,034) | $(2,885) | | General and administrative expenses | $(2,066) | $(1,525) | | Operating loss | $(4,898) | $(4,094) | | Financial income, net | $22 | $137 | | Net loss | $(4,876) | $(3,957) | | Basic and diluted net loss per share | $(0.00) | $(0.00) | | Weighted average number of ordinary shares | 3,411,909,670 | 1,821,304,184 | - Net loss increased by $919 thousand (23.2%) from $3,957 thousand in H1 2024 to $4,876 thousand in H1 20259 - Revenues decreased by $114 thousand (36.1%) year-over-year9 - Research and development expenses increased by $149 thousand (5.2%), and general and administrative expenses increased by $541 thousand (35.5%)9 Condensed Consolidated Statements of Changes in Shareholders' Equity Total shareholders' equity decreased due to net loss, partially offset by capital raised from various share issuances during the period Equity Changes Total shareholders' equity decreased from $5,436 thousand at January 1, 2025, to $4,184 thousand at June 30, 2025, primarily due to the net loss, partially offset by proceeds from share issuances | (U.S. dollars in thousands) | Ordinary shares (Number) | Additional paid-in capital | Accumulated other comprehensive income | Accumulated deficit | Total shareholders' equity | | :-------------------------- | :----------------------- | :------------------------- | :------------------------------------- | :------------------ | :------------------------- | | Balance as of January 1, 2025 | 2,983,181,793 | $170,670 | $1,127 | $(166,361) | $5,436 | | Net loss | - | - | - | $(4,876) | $(4,876) | | Issuance of ordinary shares and warrants, net | 750,000,000 | $2,548 | | | $2,548 | | Issuance of ordinary shares due to ATM, net | 204,225,600 | $825 | - | - | $825 | | Share-based payments | 30,000,000 | $251 | - | - | $251 | | Balance as of June 30, 2025 | 3,967,407,393 | $174,294 | $1,127 | $(171,237) | $4,184 | - Total ordinary shares outstanding increased significantly from 2,983,181,793 at January 1, 2025, to 3,967,407,393 at June 30, 2025, due to various issuances12 - Additional paid-in capital increased by $3,624 thousand during the six months ended June 30, 2025, from share issuances and share-based payments12 Condensed Consolidated Statements of Cash Flows Cash and cash equivalents increased significantly, driven by financing activities, which compensated for continued cash usage in operations Cash Flow Activities The company's cash and cash equivalents increased significantly in the first half of 2025, primarily due to substantial cash inflows from financing activities, which offset the continued net cash used in operating activities | (U.S. dollars in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(4,752) | $(4,036) | | Net cash provided by investing activities | $2,999 | $4,496 | | Net cash provided by financing activities | $3,373 | $- | | Exchange differences on balances of cash and cash equivalents | $9 | $(19) | | Increase in cash and cash equivalents | $1,629 | $441 | | Cash and cash equivalents at the beginning of the period | $4,825 | $4,278 | | Cash and cash equivalents at the end of the period | $6,454 | $4,719 | - Net cash used in operating activities increased by $716 thousand (17.7%) year-over-year15 - Net cash provided by financing activities was $3,373 thousand in H1 2025, compared to $0 in H1 2024, primarily from issuance of ordinary shares and warrants17 - Cash and cash equivalents at period end increased to $6,454 thousand in H1 2025 from $4,719 thousand in H1 202417 Notes to Condensed Consolidated Financial Statements These notes provide detailed explanations of the company's accounting policies, financial statement line items, and significant events NOTE 1: General Information and Going Concern Can-Fite Biopharma Ltd. is a clinical-stage biopharmaceutical company developing small molecule therapeutic products. The company's financial statements are prepared assuming a going concern, despite a history of net losses and negative operating cash flows, which raised substantial doubt. Management's plans to alleviate this doubt include reducing non-essential expenses, deferring R&D programs, and seeking additional financing - Can-Fite Biopharma Ltd. is a clinical-stage biopharmaceutical company focused on developing orally bioavailable small molecule therapeutic products for conditions like psoriasis, liver cancer, MASH, pancreatic cancer, and erectile dysfunction, utilizing the A3AR therapeutic target19 - Substantial doubt about the company's ability to continue as a going concern was raised due to net losses of $4,876 thousand (H1 2025) and $3,957 thousand (H1 2024), net operating cash outflows of $4,752 thousand (H1 2025) and $4,036 thousand (H1 2024), and reliance on additional financing2021 - Management's plans to address going concern include reducing non-essential expenses, deferring/reprioritizing R&D programs, and raising additional funds through equity or debt financings, or strategic partnerships2225 NOTE 2: Significant Accounting Policies This section details the company's revenue recognition policies, specifically regarding contract balances and remaining performance obligations, and outlines recently issued accounting pronouncements that have not yet been adopted - Contract liabilities, representing amounts received for which revenue has not yet been recognized, amounted to $1,788 thousand as of June 30, 2025, down from $1,986 thousand as of December 31, 202429 - The aggregate amount of transaction price allocated to remaining performance obligations was $1,788 thousand as of June 30, 2025, with 22% expected to be recognized as revenue over the next 12 months and the remainder over the following 3.5 years30 - The company is evaluating the impact of recently issued accounting pronouncements, ASU 2023-09 (Income Taxes) effective January 1, 2025, and ASU 2024-03 (Income Statement - Expense Disaggregation) effective after December 15, 20263031 NOTE 3: Fair Value Measurements The company measures its short-term investment at fair value, classifying it as Level 1 due to the use of quoted prices in active markets for identical assets - The company's short-term investment, consisting of an equity investment in a publicly traded company, is classified within Level 1 of the fair value hierarchy33 Fair Value Measurements (U.S. dollars in thousands) | Description | Fair value (June 30, 2025) | Level 1 (June 30, 2025) | Fair value (December 31, 2024) | Level 1 (December 31, 2024) | | :------------------ | :------------------------- | :---------------------- | :----------------------------- | :-------------------------- | | Short-term investment | $2 | $2 | $5 | $5 | NOTE 4: Earnings Per Share Basic and diluted net loss per share remained at $(0.00) for both periods, despite a significant increase in the weighted average number of ordinary shares outstanding, as all outstanding share options and warrants were anti-dilutive | (U.S. dollars in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Net loss applicable to shareholders | $(4,876) | $(3,957) | | Weighted average shares used in computing basic and diluted net loss per share | 3,411,909,670 | 1,821,304,184 | | Net loss per share, basic and diluted | $(0.00) | $(0.00) | - The weighted average number of ordinary shares used in computing basic and diluted net loss per share increased by 87.3% from 1,821,304,184 in H1 2024 to 3,411,909,670 in H1 202536 - All outstanding share options and warrants (excluding prefunded warrants) were excluded from diluted EPS calculation as they were anti-dilutive for both periods37 NOTE 5: Contingent Liabilities and Commitments The company has a patent license agreement with Leiden University for compounds including CF602, which involves various royalty payments based on milestones, net sales, and sublicensing, with no material accrual recorded as of June 30, 2025 - The company holds an exclusive license from Leiden University for patents of several compounds, including CF602, in certain territories39 - Commitments include a one-time €25 thousand concession commission, annual royalties of €10 thousand until clinical trials commence, 2%-3% of net sales, and milestone-based royalties up to €850 thousand (e.g., €50k for Phase I, €100k for Phase II, €200k for Phase III, €500k for marketing approval)41 - A 10% royalty rate applies if the agreement is sublicensed to another company41 NOTE 6: Shareholders' Equity Details This section details significant changes in shareholders' equity, including multiple share issuances through registered direct offerings and ATM programs, an increase in authorized share capital, and the adoption of new share option plans, alongside a summary of outstanding warrants - In April 2025, the company completed a registered direct offering of 750,000,000 ordinary shares at $0.004 per share, generating approximately $3,000 thousand in gross proceeds, and issued warrants to the placement agent434447 - During January through June 2025, the company issued 204,225,600 ordinary shares for net proceeds of $825 thousand through its ATM program47 - The authorized share capital was increased by 10,000,000,000 ordinary shares on June 30, 2025, bringing the total authorized to 20,000,000,000 ordinary shares47 Share-based expenses recognized (U.S. dollars in thousands) | (U.S. dollars in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Research and development | $30 | $34 | | General and administrative | $221 | $159 | | Total | $251 | $193 | Outstanding Warrants to Purchase Ordinary Shares (as of June 30, 2025) | Issuance date | Number of outstanding Warrants | Exercise price per warrant | | :------------ | :----------------------------- | :------------------------- | | January 2020 | 23,838,038 | $0.12 | | December 2021 | 10,500,000 | $0.07 | | January 2023 | 28,636,500 | $0.02 | | November 2023 | 771,366,900 | $0.00 | | August 2024 | 1,774,285,800 | $0.01 | | April 2025 | 52,500,000 | $0.01 | | Total | 2,661,127,238 | | NOTE 7: Segment Reporting The company operates as a single operating segment, with the CEO serving as the chief operating decision maker who reviews consolidated financial information to allocate resources and assess performance - The company's business is comprised of one operating segment54 - The Chief Executive Officer (CEO) acts as the chief operating decision maker (CODM) and reviews financial information on a consolidated basis to measure segment profit or loss, allocate resources, and assess performance54 NOTE 8: Subsequent Events Subsequent to the balance sheet date, in July 2025, the company completed a public offering, raising significant gross proceeds and issuing ordinary shares, pre-funded warrants, and common warrants, along with incurring issuance costs - On July 28, 2025, the company completed a public offering, raising aggregate gross proceeds of $5,000 thousand (approximately $4,200 thousand net of issuance costs)55 - The July 2025 Offering included the issuance of 375,000,000 ordinary shares, 7,083,333 pre-funded warrants (to purchase up to 2,124,999,900 ordinary shares), and 16,666,666 common warrants (to purchase up to 4,999,999,800 ordinary shares)55 - The pre-funded warrants are immediately exercisable at a nominal exercise price ($0.001 per ADS), and common warrants have an exercise price of $0.002 per share ($0.60 per ADS) and expire on the two-year anniversary of issuance56 - The company incurred an aggregate issuance cost of $760 thousand for the July 2025 Offering and issued warrants to the placement agent57