PainReform(PRFX) - 2025 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of $2,316,000 for the six months ended June 30, 2025, a significant reduction compared to a loss of $12,818,000 for the same period in 2024, indicating an improvement of approximately 82%[4] - The Company reported a total operating loss of $2,368,000 for the six months ended June 30, 2025, with the clinical development segment contributing a loss of $1,687,000 and the solar segment contributing a loss of $681,000[55] - The Company reported a loss before taxes on income of $2,316,000 for the reporting period[55] Assets and Liabilities - As of June 30, 2025, total assets increased to $11,162,000 from $4,525,000 as of December 31, 2024, representing a growth of 146%[3] - The accumulated deficit increased to $58,767,000 as of June 30, 2025, compared to $56,451,000 as of December 31, 2024, showing an increase of 4%[3] - Cash and cash equivalents decreased to $3,479,000 as of June 30, 2025, down from $4,261,000 at the end of 2024, reflecting a decline of 18%[3] - The total accrued expenses as of June 30, 2025, were $1,831,000, slightly down from $1,904,000 as of December 31, 2024, indicating a decrease of approximately 3.8%[25] Capital and Financing - The company raised $1,338,000 from the issuance of shares, warrants, and prefunded warrants during the six months ended June 30, 2025[9] - Management plans to continue capital raising through the sale of additional equity securities and strategic partnerships to fund operations[16] - Between June 30, 2025, and the date of issuance of the financial statements, the Company raised approximately $2.7 million by issuing 1,062,199 ordinary shares under its At-the-Market offering program[58] - The company generated gross proceeds of approximately $1.34 million from the issuance of 362,960 ordinary shares through an At-the-Market (ATM) offering between January 1, 2025, and June 30, 2025[28] Acquisitions and Investments - The company completed an asset acquisition of AI-driven solar analytics technology, DeepSolar, in March 2025, enhancing its technology portfolio[11] - In August 2025, the company acquired a majority equity interest in LayerBio, Inc., which is advancing sustained-release drug delivery technologies in ophthalmology[12] - The Company has entered into a Preferred Stock Purchase Agreement to acquire 51% of LayerBio for $600, with potential additional investment of up to $2.4 million contingent on specific milestones[58] - The company completed an asset acquisition of Bladeranger Ltd. for a total consideration valued at $7,292,000, which included the issuance of various warrants and shares[44] - The fair value of the acquired intangible asset from the acquisition was determined using a discounted cash flow approach, resulting in a net carrying amount of $7,119,000 after accumulated amortization of $173,000[45] Operational Insights - The company expects to continue incurring losses until its products reach commercial profitability, with no assurance of achieving this[15] - As of June 30, 2025, no revenue was recognized in either the clinical development or the solar segment[54] - Consulting expenses for the clinical development segment totaled $740,000, while the solar segment incurred $285,000 in consulting expenses[55] Shareholder and Management Actions - The company approved an increase in its authorized share capital by an additional 7,500,000 ordinary shares, pending shareholder approval[29] - As of June 30, 2025, the company had 220,320 options outstanding under the 2019 Share Option Plan, with a weighted average exercise price of $10.26[33] - The company’s management does not expect the ongoing military conflict in Israel to have a material impact on its operations or business results[23] - The company’s lease agreement for its principal offices was extended until July 31, 2026, with an annual rent reduction of approximately $12,000[26] - The Company extended its lease agreement for its principal offices in Tel Aviv, Israel, to July 2026, with monthly rent of $5, linked to the CPI, and total lease expenses of $30,000 in 2025[50] - The weighted average remaining lease term for the Company's office space is 1 year, with a discount rate of 8.5%[50] Financial Income - For the six months ended June 30, 2025, the total financial income, net was $52,000, a decrease of 43.5% compared to $92,000 for the same period in 2024[52] - The company recognized share-based compensation expenses of $389,000 for the year ended June 30, 2025, compared to $146,000 for the year ended June 30, 2024, reflecting an increase of 166%[36]