Notable Labs(NTBL) - 2023 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2023, were $0, a decrease of $113,000 compared to $113,000 in the same period in 2022, due to the termination of the NanoCarrier license agreement[87]. - The company reported a net loss of $2.6 million for Q1 2023, with non-cash charges totaling $0.5 million[99]. - Financial income, net, for the three months ended March 31, 2023, was approximately $0.05 million, down from $0.1 million in the same period in 2022, due to unfavorable exchange rates[93]. Research and Development - Research and development expenses, net, for the three months ended March 31, 2023, were approximately $0.1 million, a decrease of approximately $7.4 million from $7.5 million in the same period in 2022, primarily due to the termination of clinical trials and workforce reductions[90]. - The company anticipates a significant decrease in ongoing research and development expenses due to the closure of the ofra-vec program and the early stage of the VB-601 program[80]. Cash and Capital Resources - As of March 31, 2023, the company had cash and cash equivalents totaling $26.5 million and working capital of $19.2 million[95]. - The company expects its current cash resources to be sufficient to fund estimated operating expenses and capital expenditures for at least 12 months from the filing date of the financial statements[95]. - The company raised an aggregate of $327.0 million since inception, including $29.4 million from IIA grants and $1.1 million from the EIC[94]. - Net cash used in operating activities for Q1 2023 was approximately $1.7 million, compared to $8.3 million in Q1 2022[99][100]. - Net cash provided by investing activities for Q1 2023 was approximately $10.1 million, primarily due to the maturation of short-term bank deposits and the sale of a long-term asset[101]. - The company may seek additional capital through equity offerings, debt financing, collaborations, and licensing arrangements, which could dilute existing shareholders' interests[96]. - The company may need to delay or limit product development if unable to raise additional funds when needed[96]. Merger and Corporate Actions - The proposed Merger with Notable Labs, Inc. is expected to result in former Notable securityholders owning approximately 76% of the combined company on a fully diluted basis[66]. - The Merger is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes[65]. - The company completed the sale of its rights to the former Modi'in manufacturing facility for $7.1 million on March 9, 2023, to meet the $15.0 million minimum Net Cash closing condition for the proposed Merger[71]. Tax and Financial Position - As of March 31, 2023, the company had carry forward tax losses of $250.5 million and does not expect to pay taxes in Israel until taxable income is generated[84]. - General and administrative expenses for the three months ended March 31, 2023, were $3.2 million, slightly up from $3.2 million in the same period in 2022, mainly due to increased legal costs[91]. - The company anticipates that its losses may fluctuate significantly based on clinical trial timings and collaboration agreements[95]. - The company had no financing activities in Q1 2023 or the parallel period[102].