Revenue and Financial Performance - The company generated cumulative revenues of approximately $17.4 million, primarily from an exclusive license agreement with NanoCarrier Co., Ltd., which has now been terminated [77]. - No revenues were recorded for the three and six months ended June 30, 2023, compared to $0.1 million and $0.2 million for the same periods in 2022, respectively, due to the termination of the NanoCarrier license agreement [91][93]. - The company recorded a gain on the sale of its former Modi'in manufacturing facility of approximately $0.4 million during the six months ended June 30, 2023 [72]. - Cash used in operating activities was approximately $4.1 million for the six months ended June 30, 2023, compared to $18.1 million for the same period in 2022, indicating a significant reduction in cash burn [111][112]. - As of June 30, 2023, the company had cash and cash equivalents totaling $24.3 million and working capital of $19.2 million, which is expected to be sufficient to fund operations for at least 12 months [107]. Expenses and Cost Management - Research and development expenses are expected to be significantly less than prior periods due to the closure of the ofra-vec program and the early stage of the VB-601 program [84]. - Research and development expenses, net, decreased by approximately $8.3 million for the three months ended June 30, 2023, and by approximately $15.7 million for the six months ended June 30, 2023, primarily due to the termination of clinical trials and workforce reductions [95][96]. - General and administrative expenses are expected to decrease due to a significant reduction in workforce, although legal and administrative fees related to the merger are anticipated to increase [85]. - General and administrative expenses decreased by $1.1 million for the three months ended June 30, 2023, and by $1.0 million for the six months ended June 30, 2023, mainly due to reversals of share-based compensation and reduced payroll expenses [97][98]. - Operating loss for the three months ended June 30, 2023, was $0.9 million, compared to an operating loss of $9.6 million for the same period in 2022, reflecting a decrease of $8.7 million [90]. - Impairment loss for the three and six months ended June 30, 2023, was $0.3 million, attributed to the write-down of remaining fixed assets in preparation for a merger [99][100]. Mergers and Acquisitions - The proposed sale of the VB-601 asset includes total cash consideration of up to $5 million plus royalties, with an upfront cash payment of $250,000 upon closing [73]. - The merger with Notable Labs, Inc. is expected to result in former Notable securityholders owning approximately 76% of the ordinary shares on a fully diluted basis [69]. - The merger is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes [68]. - The company plans to use proceeds from the asset sale to meet the $15.0 million minimum net cash closing condition required by the merger agreement [72]. Funding and Grants - The company has received a total of $38.4 million in grants from the Israeli Innovation Authority, which are subject to repayment through future royalty payments [82]. - The company raised an aggregate of $328.5 million since inception, including $29.4 million from IIA grants and $2.6 million from the EIC [106]. - The company anticipates needing additional capital to obtain regulatory approval for product candidates and may pursue various financing options, including equity offerings and collaborations [108]. Compliance and Regulatory Matters - The company has a compliance period until August 28, 2023, to regain compliance with Nasdaq's minimum bid price requirement [74]. - Financial expenses, net, were approximately $0.01 million for the three months ended June 30, 2023, compared to $0.2 million of income for the same period in 2022, primarily due to changes in exchange rates [104].
Notable Labs(NTBL) - 2023 Q2 - Quarterly Report