Financial Performance - For the three months ended June 30, 2023, total operating expenses were $5,677,000, a decrease of 9.3% compared to $6,259,000 for the same period in 2022[5]. - The net loss for the period was $5,683,000, compared to a net loss of $4,768,000 for the same period in 2022, reflecting an increase of 19.2%[5]. - The total comprehensive loss for the six months ended June 30, 2023, was $11,891,000, compared to $12,764,000 for the same period in 2022, showing a slight improvement of 6.9%[5]. - Research and development expenses for the six months ended June 30, 2023, were $6,788,000, down 24% from $8,916,000 in the same period of 2022[5]. - The company reported finance income of $47,000 for the three months ended June 30, 2023, a significant decrease from $1,539,000 in the same period of 2022[5]. Cash and Assets - Cash and cash equivalents decreased to $7,118,000 as of June 30, 2023, down from $13,184,000 at the beginning of the year, representing a decline of 46%[8]. - Total assets decreased to $16,754,000 as of June 30, 2023, from $22,025,000 as of December 31, 2022, a reduction of 24%[8]. - The accumulated deficit increased to $84,257,000 as of June 30, 2023, compared to $72,659,000 at the end of 2022, indicating a rise of 15.9%[8]. Financing and Capital Needs - The company plans to finance cash needs through equity offerings or other capital sources, requiring additional financing by December 2023[18]. - The company raised $5,973,000 from the issuance of shares and exercise of warrants during the six months ended June 30, 2023[12]. - The company entered into a Purchase Agreement to sell up to $40 million of its ordinary shares over a 36-month period, with no sales made as of June 30, 2023[24]. - The company has a financing agreement of up to $20 million with Global Growth Holding Limited as of July 31, 2023[26]. - The company’s current cash position and forecasted cash requirements indicate a need for additional financing to continue operations and product development[17]. Legal Proceedings - As of June 30, 2023, the Company and SSI have agreed to pause ongoing court proceedings and begin out-of-court negotiations[71]. - The Company believes ongoing legal proceedings will not materially impact future financial results[71]. - The Company believes it has strong defenses against SSI's claim regarding the Invention[70]. - The Company does not expect a material impact on its rights to use the Invention for developing and commercializing EVX-01[70]. - The Company intends to vigorously defend against SSI's claim, which it believes is without merit[70]. Going Concern - The company has significant doubt about its ability to continue as a going concern for at least one year from the balance sheet date due to ongoing losses and funding needs[19]. Shareholder Information - The carrying amount of the warrant liability decreased from $573,000 at January 1, 2023, to $402,000 at June 30, 2023, due to remeasurement[46]. - As of June 30, 2023, the number of warrants as a percentage of outstanding ordinary shares was 8.6%, down from 11.0% in 2022[47]. - The company granted 10,000 warrants to an employee on March 15, 2023, which vest over 36 months[50]. - The company sold 3,160,208 ordinary shares represented by ADSs from January 1, 2023, to June 30, 2023, at a volume weighted average price of $1.84 per ADS, generating approximately $6.0 million in gross proceeds[64]. - The company issued 428,572 ordinary shares as a commitment fee of $1.2 million for Lincoln Park's commitment under the Purchase Agreement[24].
Evaxion(EVAX) - 2023 Q2 - Quarterly Report