Oramed(ORMP) - 2023 Q2 - Quarterly Report

Financial Performance - The company reported revenues of $1.34 million for the six months ended June 30, 2023, consistent with the same period in 2022 [26]. - The net loss attributable to stockholders for the six months ended June 30, 2023, was $4.589 million, compared to a net loss of $20.958 million for the same period in 2022, indicating an improvement of approximately 78.1% [26]. - Basic and diluted loss per share improved to $0.11 for the six months ended June 30, 2023, compared to $0.54 for the same period in 2022 [26]. - The net loss for the six months ended June 30, 2023, was $4,924, compared to a net loss of $21,775 for the same period in 2022 [37]. - The Company reported a net loss of $4.92 million for the six months ended June 30, 2023, significantly lower than the $21.78 million loss for the same period in 2022 [112]. Assets and Liabilities - As of June 30, 2023, total assets decreased to $156.314 million from $161.642 million as of December 31, 2022, representing a decline of approximately 3.5% [23]. - Total current liabilities decreased to $1.067 million as of June 30, 2023, from $5.746 million as of December 31, 2022, a reduction of approximately 81.5% [23]. - The company’s total stockholders' equity as of June 30, 2023, was $151.546 million, slightly down from $151.812 million as of December 31, 2022 [23]. - As of June 30, 2023, the total stockholders' equity was $150,655, an increase from $150,148 as of March 31, 2023 [34]. - Cash and cash equivalents at the end of the period were $6,767, down from $40,464 at the beginning of the period [37]. - The total long-term liabilities remained relatively stable at $4.592 million as of June 30, 2023, compared to $4.740 million as of December 31, 2022 [23]. Expenses - Research and development expenses significantly decreased to $6.248 million for the six months ended June 30, 2023, down from $15.015 million in the same period of 2022, a reduction of approximately 58.4% [26]. - General and administrative expenses for the six months ended June 30, 2023 decreased by 54% to $3,715,000, down from $8,024,000 in the same period in 2022 [132]. - Sales and marketing expenses decreased by 61% to $376,000 for the six months ended June 30, 2023, compared to $970,000 for the same period in 2022 [129]. - Sales and marketing expenses decreased by 49% to $192,000 for the three months ended June 30, 2023, compared to $380,000 for the same period in 2022 [130]. - The company incurred stock-based compensation of $1,993 for the six months ended June 30, 2023, compared to $5,911 for the same period in 2022 [37]. Financial Income - Financial income increased to $4.075 million for the six months ended June 30, 2023, compared to $0.894 million in the same period of 2022, an increase of approximately 355.4% [26]. - Net financial income increased by 356% to $4,075,000 for the six months ended June 30, 2023, compared to $894,000 for the same period in 2022 [134]. Strategic Developments - The company is evaluating potential strategic opportunities to enhance shareholder value following the trial results [41]. - The company is currently evaluating a path forward with Medicox following the results of the ORA-D-013-1 Phase 3 trial [62]. - The joint venture with HTIT will focus on the development and commercialization of oral insulin and POD™ technology, with HTIT investing $60 million and Oramed investing $10 million [108]. - The company is considering a path forward for its oral insulin candidate based on positive responses from specific patient subpopulations [125]. Agreements and Transactions - The company entered into a DIP Loan Agreement for $100,000 on August 9, 2023, which will significantly reduce its cash position [43]. - The Company entered into a controlled equity offering agreement allowing for the issuance of shares with an aggregate offering price of up to $100,000, resulting in net proceeds of $26,253 from 1,971,447 shares issued as of August 10, 2023 [79]. - The Company entered into a Stock Purchase Agreement to acquire securities of Scilex Holding Company for a total purchase price of $105,000, subject to bankruptcy court approval [87]. - The Company will provide a DIP Facility of $100,000 to the Debtors, with proceeds used to refinance approximately $82,000 of existing obligations and for working capital [91]. - The Stock Purchase Agreement includes several closing conditions, including governmental approvals and no occurrence of a trigger event in Scilex's governance documents [162]. Marketable Securities - As of June 30, 2023, the company's marketable securities totaled $943, down from $3,743 as of December 31, 2022 [69]. - The fair value of held to maturity securities as of June 30, 2023, was estimated at $500, compared to $3,224 as of December 31, 2022 [74]. - The company recorded an $824 increase in the value of its non-marketable equity securities due to a Series C investment round in Diasome closing in June 2023 [77]. - The company holds approximately 1.4% of DNA's outstanding ordinary shares, with a fair value of $334 as of June 30, 2023 [70]. Trial Results - The ORA-D-013-1 Phase 3 trial did not meet its primary and secondary endpoints, leading to its termination [41]. - The ORA-D-013-1 Phase 3 trial did not meet its endpoints, leading to its termination, but analysis indicates potential for specific patient subpopulations to respond well to oral insulin [99].