Oramed(ORMP) - 2024 Q1 - Quarterly Report

Financial Performance - The company reported a net income of $1,534 thousand for the three months ended March 31, 2024, a significant improvement from a net loss of $3,611 thousand in the same period of 2023[28]. - Basic income per share improved to $0.04 for Q1 2024, compared to a loss of $0.08 per share in Q1 2023[28]. - Revenues for the three-month period ended March 31, 2024 were $0, a decrease from $666,000 in the same period in 2023 due to the timing of revenue recognition[135]. - Net financial income increased by 219% to $5,088,000 for the three-month period ended March 31, 2024, compared to $1,597,000 in 2023, driven by revaluation of transactions and interest from deposits[153]. Assets and Liabilities - Total current assets increased to $177,095 thousand as of March 31, 2024, compared to $162,584 thousand as of December 31, 2023, reflecting a growth of approximately 8.5%[23]. - Total liabilities decreased to $37,931 thousand as of March 31, 2024, down from $57,658 thousand as of December 31, 2023, indicating a reduction of approximately 34%[23]. - The company’s total stockholders' equity increased to $166,639 thousand as of March 31, 2024, compared to $163,821 thousand as of December 31, 2023, reflecting a growth of about 1.1%[24]. - As of March 31, 2024, total current liabilities were $33,556,000, resulting in a working capital surplus of $143,539,000[167]. Cash Flow - Cash and cash equivalents at the end of the period increased to $18,576 thousand from $9,055 thousand at the beginning of the period, marking an increase of 105%[34]. - The company generated net cash used in operating activities of $1,476 thousand for the three months ended March 31, 2024, a decrease from $5,549 thousand in the same period of 2023[34]. - Total net cash provided by investing activities was $29,998 thousand for Q1 2024, compared to a cash outflow of $13,203 thousand in Q1 2023[34]. - Financing activities used cash of $19,000,000 in the three months ended March 31, 2024, compared to cash provided of $2,430,000 in the same period in 2023[171]. Research and Development - Research and development expenses decreased to $1,179 thousand in Q1 2024 from $4,427 thousand in Q1 2023, representing a reduction of approximately 73%[28]. - The company is currently incurring lower research and development expenses following the termination of the Phase 3 trials and is conducting a strategic review process[45]. - The ORA-D-013-1 Phase 3 trial for oral insulin did not meet its primary or secondary endpoints, leading to the termination of the ORA-D-013-2 trial as well[120]. - A new Phase 3 clinical trial protocol is being developed based on positive responses from specific patient subpopulations, showing over 1% placebo-adjusted reduction in HbA1c[120]. Joint Ventures and Agreements - On January 22, 2024, the Company entered into a joint venture agreement with Hefei Tianhui Biotech Co., Ltd., focusing on oral drug delivery technology[40]. - The joint venture will initially have equal shares, with the Company contributing $20,000, including $10,000 in cash and $10,000 in common stock[42]. - The Company will receive a 3% royalty on gross revenues generated from assets related to the joint venture[42]. - A joint venture agreement was established with HTIT Biotech, with Oramed contributing $20 million and intellectual property, while HTIT will contribute $70 million in cash[121][123]. Stock and Equity - The weighted average number of shares used in computing diluted income per share increased to 41,564,007 in Q1 2024 from 40,041,258 in Q1 2023[28]. - The Company granted a total of 150,000 RSUs to board members, with a fair value of $359, based on a share price of $2.39[1]. - An additional 37,610 RSUs were granted to certain board members, valued at $90, also based on a share price of $2.39[2]. - The Company issued 950,500 RSUs to executive officers and one employee, with a total fair value of $2,272[3]. - The Company granted 294,000 PSUs to executive officers, with a fair value of $691, contingent on achieving specific stock price targets[4]. Strategic Outlook - The company is evaluating strategic opportunities to enhance shareholder value following the termination of the Phase 3 trials[144]. - The company expects to maintain current planned activities for at least the next 12 months based on available cash resources, although additional financing may be needed[161].