RedHill Biopharma(RDHL) - 2025 Q2 - Quarterly Report

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS This section presents the unaudited interim financial statements, detailing comprehensive loss, financial position, equity, and cash flows Condensed Consolidated Interim Statements of Comprehensive Loss For the six months ended June 30, 2025, RedHill Biopharma Ltd. reported increased net revenues but also a higher comprehensive loss compared to the same period in 2024, primarily driven by changes in financial income and expenses | Metric (U.S. dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | NET REVENUES | 4,079 | 2,572 | | GROSS PROFIT | 2,472 | 1,168 | | OPERATING LOSS | (4,378) | (8,448) | | FINANCIAL INCOME, net | 245 | 5,360 | | LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD | (4,133) | (3,088) | | LOSS PER ORDINARY SHARE, basic and diluted | 0.00 | 0.00 | - Net revenues increased by 58.2% from $2,572 thousand in H1 2024 to $4,079 thousand in H1 2025[5] - Operating loss significantly improved from $(8,448) thousand in H1 2024 to $(4,378) thousand in H1 2025[5] - Net financial income decreased substantially from $5,360 thousand in H1 2024 to $245 thousand in H1 2025, contributing to a higher comprehensive loss[5] Condensed Consolidated Interim Statements of Financial Position As of June 30, 2025, the company's total assets slightly increased compared to December 31, 2024, while total liabilities also saw a minor increase, and the capital deficiency improved | Metric (U.S. dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | TOTAL ASSETS | 18,375 | 18,043 | | TOTAL LIABILITIES | 22,787 | 22,726 | | TOTAL CAPITAL DEFICIENCY | (4,412) | (4,683) | | Cash and cash equivalents | 2,866 | 4,617 | | Trade receivables | 5,350 | 2,539 | | Allowance for deductions from revenue | 10,541 | 9,288 | - Cash and cash equivalents decreased by approximately 37.8% from $4,617 thousand at December 31, 2024, to $2,866 thousand at June 30, 2025[8] - Trade receivables increased significantly by approximately 110.7% from $2,539 thousand to $5,350 thousand[8] - Allowance for deductions from revenue increased by approximately 13.5% from $9,288 thousand to $10,541 thousand[8] Condensed Consolidated Interim Statements of Changes in Equity (Capital Deficiency) The statements show a reduction in the total capital deficiency from $(4,683) thousand at January 1, 2025, to $(4,412) thousand at June 30, 2025, primarily influenced by share issuances and share-based compensation, partially offset by the comprehensive loss for the period | Metric (U.S. dollars in thousands) | January 1, 2025 | June 30, 2025 | January 1, 2024 | June 30, 2024 | | :--------------------------------- | :-------------- | :------------ | :-------------- | :------------ | | BALANCE AT BEGINNING OF PERIOD | (4,683) | N/A | 2,069 | N/A | | Share-based compensation | N/A | 815 | N/A | 766 | | Issuance of ordinary shares | N/A | 3,589 | N/A | 314 | | Comprehensive loss | N/A | (4,133) | N/A | (3,088) | | BALANCE AT END OF PERIOD | N/A | (4,412) | N/A | 61 | - Issuance of ordinary shares (net of costs) contributed $3,589 thousand to equity in H1 2025, a significant increase from $314 thousand in H1 2024[11] - Comprehensive loss for H1 2025 was $(4,133) thousand, worsening from $(3,088) thousand in H1 2024[11] Condensed Consolidated Interim Statements of Cash Flows For the six months ended June 30, 2025, the company continued to use cash in operating activities, albeit at a lower rate than the prior year, while cash provided by financing activities decreased, leading to an overall decrease in cash and cash equivalents | Metric (U.S. dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | (5,015) | (6,185) | | Net cash used in investing activities | (4) | (1) | | Net cash provided by financing activities | 3,259 | 7,900 | | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,760) | 1,714 | | BALANCE OF CASH AND CASH EQUIVALENTS AT THE END OF PERIOD | 2,866 | 7,277 | - Net cash used in operating activities improved by 18.9% from $(6,185) thousand in H1 2024 to $(5,015) thousand in H1 2025[14] - Net cash provided by financing activities decreased by 58.7% from $7,900 thousand in H1 2024 to $3,259 thousand in H1 2025[14] - Cash and cash equivalents at the end of the period decreased by 60.6% from $7,277 thousand in H1 2024 to $2,866 thousand in H1 2025[14] NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS This section provides explanatory notes to the interim financial statements, detailing general context, accounting policies, significant events, and financial instruments NOTE 1 - GENERAL RedHill Biopharma Ltd. is a specialty biopharmaceutical company focused on GI and infectious diseases, commercializing Talicia® in the U.S., facing significant going concern uncertainties due to insufficient funding and accumulated deficit, despite actively pursuing strategic transactions and additional financing, with immaterial impact from the war in Israel to date - RedHill Biopharma Ltd. is a specialty biopharmaceutical company focused on gastrointestinal ("GI") diseases and infectious diseases, commercializing Talicia® for Helicobacter pylori infection in adults in the U.S.[15][18] - The Company has an accumulated deficit and negative working capital through June 30, 2025, and its current cash resources are not sufficient to fund operations until sustainable positive cash flows[17][18] - Management believes there is insufficient funding to cover activities for a period exceeding one year from the filing date, indicating a material uncertainty about the Company's ability to continue as a going concern[21][22] - The Company is actively pursuing strategic transactions, including potential asset divestment, and plans to fund future operations through commercialization, out-licensing, and equity/debt financing[17] - The impact of the war in Israel on the Company's results and financial condition was immaterial during the six months ended June 30, 2025, but such impact may increase[22] [NOTE 2 - BASIS OF PREPARATION OF THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND MATERIAL ACCOUNTING POLICIES](index=9&type=section&id=NOTE%202%20-%20BASIS%20OF%20PREPARATION%20OF%20THE%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20STATEMENTS%20AND%2