Exhibit 99.1
ENLIVEX THERAPEUTICS LTD.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2022 AND DECEMBER 31, 2021
AND FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2022 AND 2021
ENLIVEX THERAPEUTICS LTD.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2022 AND DECEMBER 31, 2021
AND FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2022 AND 2021
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
;
F-1
ENLIVEX THERAPEUTICS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
U.S. dollars in thousands (except share data)
| June 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Short term deposits | ||||||||
| Marketable securities | ||||||||
| Prepaid expenses and other receivables | ||||||||
| Cash held with respect to CVR Agreement | ||||||||
| Total Current Assets | ||||||||
| Non-Current Assets | ||||||||
| Property and equipment, net | ||||||||
| Other assets | ||||||||
| Total Non-Current Assets | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable trade | $ | $ | ||||||
| Accrued expenses and other liabilities | ||||||||
| CVR holders | ||||||||
| Total Current Liabilities | ||||||||
| Non-Current Liabilities | ||||||||
| Other long-term Liabilities | ||||||||
| Total Non-Current Liabilities | ||||||||
| Commitments and Contingent Liabilities | ||||||||
| TOTAL LIABILITIES | ||||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Ordinary shares of NIS | ||||||||
| Additional paid in capital | ||||||||
| Foreign currency translation adjustments | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| TOTAL SHAREHOLDERS’ EQUITY | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ | ||||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
F-2
ENLIVEX THERAPEUTICS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
| For the three months ended | For the six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenues | $ | $ | $ | $ | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development expenses | ||||||||||||||||
| General and administrative expenses | ||||||||||||||||
| Operating loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income/(expense), net | ( | ) | ( | ) | ||||||||||||
| Net (loss) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other comprehensive income (loss) | ||||||||||||||||
| Exchange differences arising from translating financial statements from functional to presentation currency | ( | ) | ||||||||||||||
| Total other comprehensive income (loss) | ( | ) | ||||||||||||||
| Total comprehensive (loss) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
| Weighted average number of shares outstanding | ||||||||||||||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
F-3
ENLIVEX THERAPEUTICS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
U.S. dollars in thousands (except share data)
| Ordinary Shares | Additional paid in | Currency translation | Accumulated | |||||||||||||||||||||
| Shares | Amount | capital | reserve | deficit | Total | |||||||||||||||||||
| Balance as of December 31, 2021 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| Changes during the three months period ended March 31, 2022: | ||||||||||||||||||||||||
| Restricted stock units vested | ( | ) | ||||||||||||||||||||||
| Exercise of options | ||||||||||||||||||||||||
| Stock based compensation | - | |||||||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of March 31, 2022 (unaudited) | ( | ) | ||||||||||||||||||||||
| Changes during the three months period ended June 30, 2022: | ||||||||||||||||||||||||
| Exercise of options | ||||||||||||||||||||||||
| Stock based compensation | - | |||||||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of June 30, 2022 (unaudited) | ( | ) | ||||||||||||||||||||||
| Balance as of December 31, 2020 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| Changes during the three months period ended March 31, 2021: | ||||||||||||||||||||||||
| Issuance of shares and warrants for cash consideration of $ | ||||||||||||||||||||||||
| Exercise of options | ||||||||||||||||||||||||
| Exercise of warrants | ||||||||||||||||||||||||
| Stock based compensation | - | |||||||||||||||||||||||
| Other comprehensive loss | - | ( | ) | ( | ) | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of March 31, 2021 (unaudited) | ( | ) | ( | ) | ||||||||||||||||||||
| Changes during the three months period ended June 30, 2021: | ||||||||||||||||||||||||
| Exercise of options | ||||||||||||||||||||||||
| Stock based compensation | - | |||||||||||||||||||||||
| Other comprehensive loss | - | |||||||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of June 30, 2021 (unaudited) | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||
| * |
The accompanying notes are an integral part of the condensed consolidated financial statements.
F-4
ENLIVEX THERAPEUTICS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
U.S. dollars in thousands
| For
the six months ended June 30, | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities | ||||||||
| Net (loss) | $ | ( | ) | $ | ( | ) | ||
| Adjustments required to reflect net cash used in operating activities: | ||||||||
| Income and expenses not involving cash flows: | ||||||||
| Depreciation | ||||||||
| Non-cash operating lease expenses | ||||||||
| Share-based compensation | ||||||||
| Loss (income) on marketable securities and short-term bank deposits | ( | ) | ||||||
| Changes in operating asset and liability items: | ||||||||
| Decrease in prepaid expenses and other receivables | ( | ) | ( | ) | ||||
| Increase (decrease) in accounts payable trade | ( | ) | ||||||
| Increase (decrease) in accrued expenses and other liabilities | ( | ) | ||||||
| Operating lease liabilities | ( | ) | ( | ) | ||||
| Net cash (used in) provided by operating activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Release (investment) in short-term bank deposits | ( | ) | ||||||
| Purchases of marketable securities | ( | ) | ( | ) | ||||
| Proceeds from sales of marketable securities | ||||||||
| Net cash provided by (used in) investing activities | ( | ) | ||||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of shares and warrants net of $ | ||||||||
| Proceeds from exercise of warrants | ||||||||
| Proceeds from exercise of options | ||||||||
| Net cash provided by financing activities | ||||||||
| Increase (decrease) in cash and cash equivalents | ||||||||
| Cash and cash equivalents - beginning of period | ||||||||
| Exchange rate differences on cash and cash equivalents | ( | ) | ||||||
| Cash and cash equivalents - end of period | $ | $ | ||||||
| Non-cash transactions: | ||||||||
| Warrants issued in settlement of issuance costs to a placement agent | $ | $ | ||||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for taxes | $ | $ | ||||||
| Cash paid (received) for interest, net | $ | $ | ||||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
F-5
ENLIVEX THERAPEUTICS LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED)
NOTE 1 - GENERAL
| a. | Enlivex Therapeutics Ltd. (the “Parent” and, including its consolidated subsidiaries, “we”, “us”, “our” or the “Company”) is a clinical-stage macrophage reprogramming immunotherapy company originally incorporated on January 22, 2012 under the laws of the State of Israel. |
Enlivex Therapeutics R&D Ltd. (“Enlivex R&D”) was incorporated in September 2005 under the laws of the State of Israel. On March 26, 2019, upon consummation of a merger transaction between the Parent and Enlivex R&D, Enlivex R&D became a wholly owned subsidiary of the Company.
In January 2015, Enlivex Therapeutics Inc. was incorporated in the State of Delaware as a wholly owned subsidiary of the Parent.
On June 21, 2021 Enlivex Therapeutics RDO Ltd. was incorporated in Israel as a wholly owned subsidiary of the Parent.
The Company is a clinical stage macrophage reprogramming immunotherapy company, developing AllocetraTM, a universal, off-the-shelf cell therapy designed to reprogram macrophages into their homeostatic state. Resetting non-homeostatic macrophages into their homeostatic state is critical for immune system rebalancing and resolution of life-threatening conditions. Non-homeostatic macrophages contribute significantly to the severity of certain diseases, which include solid tumors, sepsis and others.
AllocetraTM is based on the discoveries of Professor Dror Mevorach, an expert on immune activity, macrophage activation and clearance of dying (apoptotic) cells, in his laboratory in the Hadassah University Hospital located in the State of Israel.
The
Company’s ordinary shares, NIS 0.
| b. | Financial Resources |
The Company devotes substantially all of its efforts toward research and development activities and raising capital to support such activities. The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding before the Company achieves sustainable revenues and profit from operations.
Research
and development activities have required significant capital investment since the Company’s inception. The Company expects that
its operations will require additional cash investment to pursue the Company’s research and development activities, including preclinical
studies, formulation development, clinical trials and related drug manufacturing. The Company has not generated any revenues or product
sales and has not achieved profitable operations or positive cash flow from operations. The Company has incurred net losses since its
inception, and, as of June 30, 2022, had an accumulated deficit of $
The Company expects to continue to incur losses for at least the next several years, and the Company will need to raise additional debt or equity financing or enter into partnerships to fund its development. If the Company is not able to achieve its funding requirements, it may be required to reduce discretionary spending, may not be able to continue the development of its product candidates or may be required to delay its development programs, which could have a material adverse effect on the Company’s ability to achieve its intended business objectives. There can be no assurances that additional financing will be secured or, if secured, will be on favorable terms. The ability of the Company to transition to profitability in the longer term is dependent on developing products and product revenues to support its expenses.
The Company’s management and board of directors (the “Board”) are of the opinion that the Company’s current financial resources will be sufficient to continue the development of the Company’s product candidates for at least twelve months from the filing of these financial statements on Form 6-K. The Company may determine, however, to raise additional capital during such period as the Board deems prudent. The Company’s management plans to finance its operations with issuances of the Company’s equity securities and, in the longer term, revenues. There are no assurances, however, that the Company will be successful in obtaining the financing necessary for its long-term development. The Company’s ability to continue to operate in the long term is dependent upon additional financial support.
F-6
ENLIVEX THERAPEUTICS LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED)
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
These unaudited condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made.
These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited annual financial statements and notes thereto included in the Company’s 2021 Annual Report on Form 20-F, as filed with the SEC on April 29, 2022. The results of operations for these interim periods are not necessarily indicative of the operating results for any future period. The December 31, 2021 financial information has been derived from the Company’s audited financial statements.
Use of Estimates
The preparation of interim financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts in the consolidated balance sheets and statements of operations, it also requires that management exercise its judgment in applying the Company’s accounting policies. On an ongoing basis, management evaluates its estimates, including estimates related to its stock-based compensation expense and implicit interest rate on new lease liabilities. Significant estimates in these interim financial statements include estimates made for accrued research and development expenses and stock-based compensation expenses.
Functional Currency and Translation to The Reporting Currency
The functional currency of the Company is the U.S. dollar because the U.S. dollar is the currency of the primary economic environment in which the Company operates and expects to continue to operate in the foreseeable future.
Until September 30, 2021, the functional currency of Enlivex R&D was the New Israeli Shekel (“NIS”).
Balances related to non-monetary assets and liabilities are based on translated amounts as of the date of the change, and non-monetary assets acquired and liabilities incurred after September 30, 2021 were translated at the approximate exchange rate prevailing at the date of the transaction. Transactions included in the statement of income for the three and six month periods ended June 30, 2022 were translated at the approximate exchange rate in effect at the respective times of the transactions. Transactions included in the statement of income for the three and six month periods ended June 30, 2021 were translated at average exchange rates during the applicable period. Gains or losses resulting from translation adjustments for the three and six month periods ended June 30, 2021 are reported in other comprehensive income (loss).
one
U.S. dollar =
The
U.S. dollar increased (decreased) against the NIS:
Reclassification of Prior Year Presentation
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
Recently Adopted Accounting Standards
In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging: Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”). ASU 2020-06 simplifies the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity by removing certain accounting models which separate the embedded conversion features from the host contract for convertible instruments. The standard also enhances the consistency of earnings-per-share calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted earnings-per-share calculations. ASU 2020-06 became effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2021. The Company evaluated ASU 2020-06 and determined that its adoption did not have an impact on the Company’s condensed consolidated financial statements and related disclosures.
F-7
ENLIVEX THERAPEUTICS LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED)
Recently Issued Accounting Pronouncements Not Yet Adopted
The Company has evaluated other recently issued accounting pronouncements and does not currently believe that any of these pronouncements will have a material impact on its condensed consolidated financial statements and related disclosures.
Significant Accounting Policies
There have been no material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 20-F for the year ended December 31, 2021.
Marketable Securities.
The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters, and concentration and diversification. The Company invests its excess cash primarily in mutual funds that are classified based on the nature of their underlying securities and their availability for use in current operations. The Company’s marketable equity securities are measured at fair value with gains and losses recognized in other income/(expense), net.
Net
(loss) income recognized on equity securities for the three and six month periods ended June 30, 2022 and 2021 was $
NOTE 3 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH
| June 30, | December 31, | |||||||
| (in thousands) | 2022 | 2021 | ||||||
| Cash held in banks | $ | $ | ||||||
| Bank deposits in U.S.$ (annual average interest rates | ||||||||
| Total cash and cash equivalents | ||||||||
| Cash held with respect to CVR Agreement | ||||||||
| Restricted cash – noncurrent – Other assets | ||||||||
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ | $ | ||||||
NOTE 4 – SHORT TERM DEPOSITS
| June 30, | December 31, | |||||||
| (in thousands) | 2022 | 2021 | ||||||
| Bank deposits in U.S.$ and NIS (average annual interest rates | $ | $ | ||||||
| Total short-term deposits | $ | $ | ||||||
F-8
ENLIVEX THERAPEUTICS LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED)
NOTE 5 – PROPERTY AND EQUIPMENT
| Property and equipment, net consists of the following: | ||||||||
| June 30, | December 31, | |||||||
| (in thousands) | 2022 | 2021 | ||||||
| Cost: | ||||||||
| Laboratory equipment | $ | $ | ||||||
| Computers | ||||||||
| Office furniture & equipment | ||||||||
| Leasehold improvements | ||||||||
| Accumulated depreciation: | ||||||||
| Laboratory equipment | ||||||||
| Computers | ||||||||
| Office furniture & equipment | ||||||||
| Leasehold improvements | ||||||||
| Depreciated cost | $ | $ | ||||||
Depreciation
expenses for the three and six month periods ended June 30, 2022 and 2021 were $
NOTE 6 – OTHER ASSETS
| June 30, | December 31, | |||||||
| (in thousands) | 2022 | 2021 | ||||||
| Restricted cash | $ | $ | ||||||
| Long-term prepaid expenses | ||||||||
| Right-of-Use assets, net | ||||||||
| $ | $ | |||||||
NOTE 7 – ACCRUED EXPENSES AND OTHER LIABILITIES
| June 30, | December 31, | |||||||
| (in thousands) | 2022 | 2021 | ||||||
| Vacation, convalescence and bonus accruals | $ | $ | ||||||
| Employees and payroll related | ||||||||
| Short term operating lease liabilities | ||||||||
| Accrued expenses and other | ||||||||
| $ | $ | |||||||
NOTE 8 – LEASES
The
Company is a party to operating leases for its corporate offices, laboratory space and vehicles. The Company’s real property operating
leases have remaining lease terms of up to
| Six months ended June 30, | ||||||||
| (in thousands) | 2022 | 2021 | ||||||
| The components of lease expense were as follows: | ||||||||
| Operating leases expenses | $ | $ | ||||||
| Supplemental consolidated cash flow information related to operating leases follows: | ||||||||
| Cash used in operating activities | $ | $ | ||||||
| Non-cash activity: | ||||||||
| Right of use assets obtained in exchange for new operating lease liabilities | $ | $ | ||||||
F-9
ENLIVEX THERAPEUTICS LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED)
| June 30, | December 31, | |||||||
| (in thousands) | 2022 | 2021 | ||||||
| Supplemental information related to operating leases, including location of amounts reported in the accompanying consolidated balance sheets, follows: | ||||||||
| Other assets - Right-of-Use assets | $ | $ | ||||||
| Accumulated amortization | ||||||||
| Operating lease Right-of-Use assets, net | $ | $ | ||||||
| Lease liabilities – current - Accounts payable and accrued liabilities | $ | $ | ||||||
| Lease liabilities – noncurrent | ||||||||
| Total operating lease liabilities | $ | $ | ||||||
| Weighted average remaining lease term in years | ||||||||
| Weighted average annual discount rate | % | % | ||||||
| Maturities of operating lease liabilities as of June 30, 2022, were as follows: | ||||
| 2022 (after June 30) | $ | |||
| 2023 | ||||
| 2024 | ||||
| 2025 | ||||
| 2026 and onwards | ||||
| Total undiscounted lease liability | $ | |||
| Less: Imputed interest | $ | ( | ) | |
| Present value of lease liabilities | $ | |||
NOTE 9 – COMMITMENTS AND CONTINGENT LIABILITIES
The
Company is required to pay royalties to the State of Israel (represented by the Israeli Innovation Authority (the “IIA”)),
computed on the basis of proceeds from the sale or license of products for which development was supported by IIA grants. These royalties
are generally
The
gross amount of grants received by the Company from the IIA, including accrued interest as of June 30, 2022, was approximately $
In January 2022, the Company submitted a new grant application to the IIA to approve the expenditure of $4.8 million of its clinical development program for the prevention of cytokine storms and organ dysfunction associated with sepsis for a period commencing January 1, 2022 and ending December 31, 2022 (the “2022 Sepsis Grant Application”). In May 2020, the IIA selected this program to receive a non-dilutive grant of approximately $1.0 million for expenses associated with the Company’s ongoing sepsis clinical Phase II trial.
F-10
ENLIVEX THERAPEUTICS LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED)
NOTE 10 – EQUITY
All Company warrants are classified as a component of shareholders’ equity because such warrants are free standing financial instruments that are legally detachable, separately exercisable, do not embody an obligation for the Company to repurchase its own shares, and permit the holders to receive a fixed number of Ordinary Shares upon exercise, requires physical settlement and do not provide any guarantee of value or return.
Number of | Weighted average exercise | |||||||
| Outstanding January 1, 2022 | $ | |||||||
| Forfeited and expired | ( | ) | $ | |||||
| Outstanding and exercisable June 30, 2022 | $ | |||||||
Comprised as follows:
| Number of Warrants | Exercise Price Per Share | Issuance date | Expiration date | |||||||
| $ | ||||||||||
| $ | ||||||||||
| $ | ||||||||||
NOTE 11 – SHARE-BASED COMPENSATION
| a) | As of June 30, 2022, |
| b) | The following table contains information concerning options granted under the existing equity incentive plans: |
| Three months ended June 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Number
of options | Weighted
average exercise price | Number
of options | Weighted
average exercise price | |||||||||||||
| Outstanding at beginning of period | $ | $ | ||||||||||||||
| Granted | - | $ | - | $ | ||||||||||||
| Forfeited and expired | ( | ) | $ | ( | ) | $ | ||||||||||
| Exercised | ( | ) | $ | ( | ) | $ | ||||||||||
| Outstanding at end of period | $ | $ | ||||||||||||||
| Exercisable at end of period | $ | $ | ||||||||||||||
| Non-vested at beginning of period | $ | $ | ||||||||||||||
| Granted | - | $ | - | $ | ||||||||||||
| Vested | ( | ) | $ | ( | ( | ) | $ | |||||||||
| Forfeited) | ( | ) | $ | ( | ( | ) | $ | |||||||||
| Non-vested at the end of period | $ | $ | ||||||||||||||
F-11
ENLIVEX THERAPEUTICS LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED)
| Six months ended June 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Number of options | Weighted average exercise price | Number of options | Weighted average exercise price | |||||||||||||
| Outstanding at beginning of period | $ | $ | ||||||||||||||
| Granted | $ | $ | ||||||||||||||
| Forfeited and expired | ( | ) | $ | ( | ) | $ | ||||||||||
| Exercised | ( | ) | $ | ( | ) | $ | ||||||||||
| Outstanding at end of period | $ | $ | ||||||||||||||
| Exercisable at end of period | $ | $ | ||||||||||||||
| Non vested at beginning of period | $ | $ | ||||||||||||||
| Granted | $ | $ | ||||||||||||||
| Forfeited and expired | ( | ) | $ | ( | ) | $ | ||||||||||
| vested | ( | ) | $ | ( | ) | $ | ||||||||||
| Outstanding at end of period | $ | $ | ||||||||||||||
During
the three and six month periods ended June 30, 2022 and 2021, the Company recognized $
| c) | Set forth below is data regarding the range of exercise prices and remaining contractual life for all options outstanding at June 30, 2022: |
| Exercise price | Number outstanding | Remaining
| Intrinsic Value of Options Outstanding | No. of options exercisable | ||||||||||||||
| (in thousands) | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
| $ | ||||||||||||||||||
F-12
ENLIVEX THERAPEUTICS LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED)
| d) | The following table contains information concerning restricted stock units granted under the existing equity incentive plans: |
| Three months ended June 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Number of shares | Weighted average grant date fair value | Number of shares | Weighted average grant date fair value | |||||||||||||
| Nonvested at beginning of period | $ | $ | ||||||||||||||
| Granted | - | $ | - | $ | ||||||||||||
| Vested | ( | ) | $ | $ | ||||||||||||
| Forfeited | - | - | ( | ) | $ | |||||||||||
| Nonvested at end of period | $ | $ | ||||||||||||||
| Six months ended June 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Number of shares | Weighted average grant date fair value | Number of shares | Weighted average grant date fair value | |||||||||||||
| Nonvested at beginning of period | $ | $ | ||||||||||||||
| Granted | - | $ | - | $ | ||||||||||||
| Vested | ( | ) | $ | $ | ||||||||||||
| Forfeited | - | $ | - | ( | ) | $ | ||||||||||
| Nonvested at end of period | $ | $ | ||||||||||||||
The
Company estimates the fair value of restricted stock units based on the closing sales price of the Ordinary Shares on the date of grant
(or the closing bid price, if no sales were reported). For the three and six month periods ended June 30, 2022 and 2021, the Company
recognized $
| e) | The following table summarizes share-based compensation expenses related to grants under the existing equity incentive plans included in the statements of operations: |
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Research & development | $ | $ | $ | $ | ||||||||||||
| General & administrative | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
F-13
ENLIVEX THERAPEUTICS LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED)
NOTE 12 – FAIR VALUE MEASUREMENT
The Company’s financial assets and liabilities measured at fair value on a recurring basis consisted of the following types of instruments as of June 30, 2022 and December 31, 2021:
| June 30, 2022 | ||||||||||||||||
| (in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | ||||||||||||
| Short term deposits | ||||||||||||||||
| Cash held with respect to CVR Agreement | ||||||||||||||||
| Restricted cash | ||||||||||||||||
| Total financial assets | $ | $ | $ | $ | ||||||||||||
| December 31, 2021 | ||||||||||||||||
| (in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | ||||||||||||
| Short term deposits | ||||||||||||||||
| Cash held with respect to CVR Agreement | ||||||||||||||||
| Marketable securities | ||||||||||||||||
| Restricted cash | ||||||||||||||||
| Total financial assets | $ | $ | $ | $ | ||||||||||||
NOTE 13 – EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE
The Company evaluated all events and transactions that occurred subsequent to the balance sheet date and prior to the date on which these unaudited condensed consolidated financial statements were issued and determined that there were no events that necessitated disclosure:
F-14