Oramed(US:ORMP)2025-11-13 21:07Financial Performance - Revenues for the nine months ended September 30, 2025, were $2,000,000, with a gross profit of $13,000, compared to no revenues in the same period of 2024 [25]. - Net income for the nine months ended September 30, 2025, was $54,007,000, a significant improvement from a net loss of $8,904,000 in 2024 [25]. - Basic income per share of common stock was $1.30 for the nine months ended September 30, 2025, compared to a loss of $0.22 in the same period of 2024 [25]. - The company recognized $665,000 in other income for the nine months ended September 30, 2025, compared to $0 in 2024 [208]. - Gross profit for the nine months ended September 30, 2025, was $13,000, indicating a significant increase from $0 in 2024 [208]. - Cost of revenue for the nine months ended September 30, 2025, was $1,987,000, with no costs reported for the same period in 2024 [212]. Assets and Equity - Total assets increased to $220,493,000 as of September 30, 2025, compared to $155,278,000 in 2024, representing a growth of 42% [22]. - Total stockholders' equity rose to $203,282,000 as of September 30, 2025, up from $146,265,000 in 2024, reflecting an increase of 39% [22]. - Cash and cash equivalents decreased to $52,179,000 as of September 30, 2025, from $54,420,000 in 2024, a decline of approximately 4% [22]. - Long-term liabilities increased to $12,044,000 as of September 30, 2025, compared to $4,246,000 in 2024, representing a rise of 184% [22]. Research and Development - Research and development expenses decreased to $4,393,000 for the nine months ended September 30, 2025, from $4,863,000 in 2024, indicating a reduction of approximately 10% [25]. - Research and development expenses for the three months ended September 30, 2025, decreased by 49% to approximately $1,153,000 compared to $2,242,000 in 2024 [218]. - The company has commitments to pay a total of $11,577 to a Clinical Research Organization for services related to its Phase 3 clinical trial, with $1,726 recognized in research and development expenses through September 30, 2025 [138]. Cash Flow and Investments - The total net cash used in operating activities for the nine months ended September 30, 2025, was $8,679,000, an increase from $6,501,000 in the prior year [32]. - The company reported a net cash provided by investing activities of $7,127,000 for the nine months ended September 30, 2025, compared to $90,393,000 in 2024 [32]. - The company holds investments in marketable securities, including $532 in DNA, $224 in Entera, and $4,200 in Pelthos as of September 30, 2025 [65]. - The company entered into a Profit Sharing Loan Agreement, loaning NIS 5.5 million ($1,523) to finance a real estate project, with potential returns of 20% annual interest or 40% of project profits [107][108]. Stock and Shareholder Activities - Stock-based compensation for the nine months ended September 30, 2025, was $3,708,000, compared to $2,824,000 in 2024 [32]. - The company repurchased and retired common stock amounting to $732,000 in the nine months ended September 30, 2025 [32]. - The company entered into a share repurchase agreement to buy back 1,155,367 shares at a price of $2.23 per share, totaling $2,576,000 [166]. - The Company repurchased 329,243 shares of its common stock for a total amount of $732 during the nine months ended September 30, 2025, under its stock buyback program [151]. Joint Ventures and Agreements - The company has a joint venture with Hefei Tianhui Biotech Co., Ltd. aimed at developing oral insulin, although the agreement was terminated on October 23, 2025 [37][38]. - The company entered into a binding term sheet for a license and development agreement with Scilex regarding lidocaine products, including ZTLido, with a focus on global net sales [183]. - A joint venture, RoyaltyVest Ltd., was formed to operate under the agreement, with the company holding 50% of the shares [184]. - RoyaltyVest entered into a ZTLido License Agreement with Scilex, acquiring exclusive rights to develop lidocaine-based products, sharing net profits equally [117][118]. Financial Transactions and Valuations - The fair value of the Company's investments in Scilex was $50,460, including $33,832 from notes and $14,660 from warrants as of September 30, 2025 [100]. - The fair value of the Tranche B Note was less than the aggregate unpaid principal balance by $4,086 thousand as of September 30, 2025 [94]. - The Company received $3,722 thousand in repayments from Scilex in April 2025, consisting of $3,125 thousand principal and $597 thousand accrued interest [94]. - The fair value of Alpha Tau's ordinary shares held by the Company was determined to be $4.51 as of September 30, 2025, up from $2.612 on April 24, 2025 [131]. Future Plans and Commitments - The company plans to initiate a 60-patient clinical trial in the U.S. to validate its oral insulin formulation in high-responder populations, aiming for a clinically meaningful outcome of over 1% reduction in HbA1c [172]. - The company approved real estate investments of up to $30 million to leverage opportunities in the current market [199]. - The company entered into a loan agreement for the Hapisga Project with a total amount of up to $22.65 million, secured by significant collateral [203].