Notable Labs(NTBL) - 2023 Q3 - Quarterly Report

Revenue and Income - 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 [85]. - Revenues for the three months ended September 30, 2023, were $0, a decrease from $0.5 million in the same period in 2022, due to the termination of the NanoCarrier license agreement [99]. - The company has not generated taxable income since inception, with carry forward tax losses of $250.5 million as of December 31, 2022 [96]. Expenses and Financial Performance - Research and development expenses have decreased significantly since the termination of the OVAL study and ofra-vec program [87]. - Research and development expenses, net, for the three months ended September 30, 2023, were approximately $5.9 million, a decrease of approximately $6.6 million from $(0.7) million in the same period in 2022, mainly due to the termination of clinical trials and workforce reductions [103]. - General and administrative expenses for the nine months ended September 30, 2023, were $7.0 million, down from $9.8 million in the same period in 2022, primarily due to a reversal of share-based compensation and reduced commercialization activity [106]. - Operating loss for the nine months ended September 30, 2023, was $4.6 million, compared to a loss of $29.0 million in the same period in 2022, reflecting a significant reduction in expenses [118]. Cash Flow and Financing - As of October 31, 2023, the post-Merger Company had cash and cash equivalents of $14.3 million, with expectations of continued operational losses in the foreseeable future [113]. - Net cash used in operating activities for the nine months ended September 30, 2023, was approximately $7.6 million, primarily due to a net loss of $4.6 million and a net increase in working capital of $3.3 million [118]. - Cash provided by investing activities for the nine months ended September 30, 2023, was approximately $10.0 million, mainly from the maturation of short-term bank deposits and proceeds from the sale of long-term assets [120]. - The company expects to finance future cash needs through equity offerings, debt financings, collaborations, and licensing arrangements, with no committed external sources of funds currently available [115]. Asset Transactions - The company recorded a capital gain of approximately $0.2 million from the sale of its former Modi'in manufacturing facility, completed on March 9, 2023 [81]. - The company completed the sale of the VB-601 Asset to Immunewalk Therapeutics Inc. for total cash consideration of $250,000 plus up to $4.75 million in milestone payments and royalties [83]. - The company plans to monetize the VB-601 asset rather than pursue internal clinical development [75]. Mergers and Corporate Structure - The merger with Notable Labs, Inc. was completed on October 16, 2023, with former Notable securityholders owning approximately 75.2% of the combined entity on a fully diluted basis [77]. - The company executed a 1-for-35 reverse share split as part of the merger agreement, resulting in 34,285,714 authorized Ordinary Shares [78]. Compliance and Regulatory Matters - The company received a deficiency letter from Nasdaq regarding the minimum bid price requirement, but has since demonstrated compliance with listing requirements [84]. - The company has received a total of $38.4 million in grants from the Israeli Innovation Authority, which are subject to repayment through future royalties [89].