Oramed(US:ORMP)2023-11-09 22:10Financial Performance - Revenues for the nine months ended September 30, 2023, were $1.340 million, a decrease of 33.7% from $2.022 million in the same period of 2022[27]. - The net loss attributable to stockholders for the nine months ended September 30, 2023, was $7.811 million, compared to a loss of $28.018 million for the same period in 2022, reflecting a decrease of 72.1%[27]. - Basic and diluted loss per share for the nine months ended September 30, 2023, was $0.19, down from $0.72 in the same period of 2022[27]. - The net loss for the nine months ended September 30, 2023, was $8,208, compared to a net loss of $29,028 for the same period in 2022[37]. - Basic and diluted loss per share for the three-month period ended September 30, 2023, decreased by 56% to $0.08, compared to $0.18 for the same period in 2022[165]. - The company has incurred aggregate losses of $170,892,000 from inception through September 30, 2023[169]. Assets and Liabilities - Total assets increased to $230.893 million as of September 30, 2023, compared to $161.642 million as of December 31, 2022, representing a growth of 42.7%[24]. - Total stockholders' equity decreased to $149.132 million as of September 30, 2023, from $151.812 million as of December 31, 2022, a decline of 1.8%[24]. - Cash and cash equivalents decreased significantly to $5.468 million as of September 30, 2023, from $40.464 million as of December 31, 2022[24]. - Total current liabilities rose to $78.175 million as of September 30, 2023, from $5.746 million as of December 31, 2022, an increase of 1,261.5%[24]. - As of September 30, 2023, total current assets were $175.705 million and total current liabilities were $78.175 million, resulting in a working capital surplus of $97.530 million[177]. Cash Flow - The company incurred total net cash used in operating activities of $8,877 for the nine months ended September 30, 2023, compared to $19,856 for the same period in 2022[37]. - Cash and cash equivalents at the end of the period were $5,468, down from $40,464 at the beginning of the period[37]. - Operating activities used cash of $8,877,000 in the nine-month period ended September 30, 2023, compared to $19,856,000 in the same period of 2022[179]. - Investing activities used cash of $103,035,000 in the nine-month period ended September 30, 2023, compared to cash provided by investing activities of $18,951,000 in the same period of 2022[180]. - Financing activities provided cash of $76,978,000 in the nine-month period ended September 30, 2023, compared to $6,604,000 in the same period of 2022[181]. Research and Development - Research and development expenses for the nine months ended September 30, 2023, were $7.205 million, down from $20.362 million in the prior year, indicating a reduction of 64.7%[27]. - The company has not generated significant revenues from operations and is currently incurring lower research and development expenses[42]. - Research and development expenses for the three-month period ended September 30, 2023, decreased by 82% to $957,000, compared to $5,347,000 for the same period in 2022[152]. Strategic Initiatives - The company is currently evaluating its existing pipeline and considering strategic opportunities to enhance shareholder value following the termination of two Phase 3 trials[41]. - The company entered into a Stock Purchase Agreement to acquire equity securities of Scilex for a purchase price of $105,000[44]. - A Senior Secured, Super-Priority Debtor-in-Possession Loan Agreement was entered into for $100,000, intended to be used as credit for the purchased securities[45]. - The company entered into a joint venture with Hefei Tianhui Incubator of Technologies Co. Ltd., focusing on the development and commercialization of oral insulin products, with HTIT investing $60 million and Oramed investing $10 million[134][136]. - The joint venture will initiate a Phase 3 oral insulin trial in the United States[135]. Stockholder Information - The company issued common stock, netting $2.428 million during the nine-month period ended September 30, 2023[31]. - The Company issued 1,971,447 shares under the Cantor Equity Distribution Agreement, generating aggregate net proceeds of $26,253 as of September 30, 2023[106]. - Stock-based compensation for the nine months ended September 30, 2023, was $2,845, down from $8,961 in the same period in 2022[37]. Financial Agreements and Securities - The company received a Senior Secured Promissory Note from Scilex for $101,875,000, maturing on March 21, 2025, with interest at Term SOFR plus 8.5%[120][122]. - A Senior Secured Promissory Note was issued to Oramed Pharmaceuticals Inc. by Scilex Holding Company on September 21, 2023[201]. - A Registration Rights Agreement was established between Oramed Pharmaceuticals Inc. and Scilex Holding Company on September 21, 2023[201]. - A Security Agreement was signed among Oramed Pharmaceuticals, Acquiom Agency Services LLC, and Scilex Holding Company on September 21, 2023[201]. Management and Administrative Expenses - General and administrative expenses for the nine-month period ended September 30, 2023, decreased by 43% to $6,314,000, compared to $11,085,000 for the same period in 2022[159]. - General and administrative expenses for the three-month period ended September 30, 2023, decreased by 15% to $2,599,000, compared to $3,061,000 for the same period in 2022[160]. - The President and CEO's monthly consulting fee is NIS 88,023 ($23), and he receives a gross monthly salary of NIS 46,901 ($12) from the subsidiary[111][112]. - There were no relocation expenses for the President and CEO during the nine months ended September 30, 2023, compared to $201 for the same period in 2022[109].