Exhibit 99.1
POLYPID LTD.
AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
AS OF JUNE 30, 2024
U.S. DOLLARS IN THOUSANDS
UNAUDITED
INDEX
- - - - - - - - - - - - - - - - - - - - - - -
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POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
Unaudited | Audited | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted deposits | ||||||||
Short-term deposits | ||||||||
Prepaid expenses and other current assets | ||||||||
Total current assets | ||||||||
LONG-TERM ASSETS: | ||||||||
Property and equipment, net | ||||||||
Operating lease right-of-use assets | ||||||||
Other long-term assets | ||||||||
Total long-term assets | ||||||||
Total assets | $ | $ |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
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POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
Unaudited | Audited | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||
CURRENT LIABILITIES: | ||||||||
Current maturities of long-term debt | $ | $ | ||||||
Accrued expenses and other current liabilities | ||||||||
Trade payables | ||||||||
Current maturities of operating lease liabilities | ||||||||
Total current liabilities | ||||||||
LONG-TERM LIABILITIES: | ||||||||
Long-term debt | ||||||||
Deferred revenues | ||||||||
Long-term operating lease liabilities | ||||||||
Other liabilities | ||||||||
Total long-term liabilities | ||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||
SHAREHOLDERS’ EQUITY (DEFICIT): | ||||||||
Ordinary shares with | ||||||||
Additional paid-in capital | ||||||||
Accumulated deficit | ( | ) | ( | ) | ||||
Total shareholders’ equity (deficit) | ( | ) | ||||||
Total liabilities and shareholders’ equity |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
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POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
Six Months Ended | Three Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | $ | $ | $ | $ | ||||||||||||
Marketing and business development | ||||||||||||||||
General and administrative | ||||||||||||||||
Operating loss | ||||||||||||||||
Financial expense, net | ||||||||||||||||
Loss before income tax | ||||||||||||||||
Income tax expenses | ||||||||||||||||
Net loss | $ | $ | $ | $ | ||||||||||||
$ | $ | $ | $ | |||||||||||||
*) | Prior period results have been retroactively adjusted to reflect the 1-for-30 reverse share split effected on September 18, 2023 (see Note 1b). |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
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POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT)
U.S. dollars in thousands (except share and per share data)
Three Months Ended June 30, 2024 | Number
of ordinary shares | Additional
paid-in capital | Accumulated
deficit | Total
shareholders’ equity | ||||||||||||
Balances as of March 31, 2024 | $ | $ | ( | ) | $ | |||||||||||
Share-based compensation | - | - | ||||||||||||||
Net loss | - | ( | ) | ( | ) | |||||||||||
Balances as of June 30, 2024 (unaudited) | $ | $ | ( | ) | $ |
Three Months Ended June 30, 2023 | Number
of ordinary shares *) | Additional
paid-in capital | Accumulated deficit | Total shareholders’ equity | ||||||||||||
Balances as of March 31, 2023 | $ | $ | ( | ) | $ | |||||||||||
Share-based compensation | - | - | ||||||||||||||
Modification of warrants | - | - | ||||||||||||||
Reclassification of pre-funded warrants to Equity | - | |||||||||||||||
Cashless exercise of pre-funded warrants | - | - | - | |||||||||||||
Net loss | - | ( | ) | ( | ) | |||||||||||
Balances as of June 30, 2023 (unaudited) | $ | $ | ( | ) | $ |
*) |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
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POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT)
U.S. dollars in thousands (except share and per share data)
Six Months Ended June 30, 2024 | Number
of ordinary shares | Additional
paid-in capital | Accumulated
deficit | Total shareholders’ equity | ||||||||||||
Balances as of January 1, 2024 | $ | $ | ( | ) | $ | ( | ) | |||||||||
Share-based compensation | - | - | ||||||||||||||
Issuance of Ordinary shares, warrants and pre-funded warrants, net (1) | ||||||||||||||||
Net loss | - | ( | ) | ( | ) | |||||||||||
Balances as of June 30, 2024 (unaudited) | $ | $ | ( | ) | $ |
(1) |
Six Months Ended June 30, 2023 | Number
of ordinary shares *) | Additional
paid-in capital | Accumulated
deficit | Total shareholders’ equity | ||||||||||||
Balances as of January 1, 2023 | $ | $ | ( | ) | $ | |||||||||||
Share-based compensation | - | - | ||||||||||||||
Issuance of Ordinary shares, net (2) | ||||||||||||||||
Issuance of pre-funded warrants, net (3) | ||||||||||||||||
Modification of warrants | - | - | ||||||||||||||
Reclassification of pre-funded warrants to Liabilities | - | ( | ) | ( | ) | |||||||||||
Reclassification of pre-funded warrants to Equity | - | |||||||||||||||
Cashless exercise of pre-funded warrants | - | - | - | |||||||||||||
Exercise of options | ||||||||||||||||
Net loss | - | ( | ) | ( | ) | |||||||||||
Balances as of June 30, 2023 (unaudited) | $ | $ | ( | ) | $ |
(2) |
(3) |
*) | Prior period results have been retroactively adjusted to reflect the 1-for-30 reverse share split effected on September 18, 2023 (see Note 1b). |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
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POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT)
U.S. dollars in thousands (except share and per share data)
Year Ended December 31, 2023 | Number
of ordinary shares |
Additional
paid-in capital |
Accumulated
deficit |
Total
shareholders’ equity (deficit) |
||||||||||||
Balances as of January 1, 2023 | $ | $ | ( |
) | $ | |||||||||||
Share-based compensation | - | - | ||||||||||||||
Issuance of Ordinary shares, net (1) | ||||||||||||||||
Issuance of pre-funded warrants, net (2) | ||||||||||||||||
Modification of warrants | - | - | ||||||||||||||
Reclassification of pre-funded warrants into liabilities | - | ( |
) | ( |
) | |||||||||||
Reclassification of pre-funded warrants into equity | - | |||||||||||||||
Cashless exercise of pre-funded warrants | - | - | - | |||||||||||||
Exercise of options | ||||||||||||||||
Net loss | - | ( |
) | ( |
) | |||||||||||
Balances as of December 31, 2023 | $ | $ | ( |
) | $ | ( |
) |
(1) |
(2) |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
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POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Six
Months Ended June 30, | ||||||||
2024 | 2023 | |||||||
Unaudited | ||||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | ( | ) | $ | ( | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation of property and equipment | ||||||||
Non-cash financial expenses, net | ||||||||
Remeasurement of warrants classified as a liability | ( | ) | ||||||
Share-based compensation expenses | ||||||||
Changes in assets and liabilities: | ||||||||
Prepaid expenses and other assets | ||||||||
Operating lease right-of-use-assets | ||||||||
Operating lease liabilities | ( | ) | ( | ) | ||||
Trade payables | ( | ) | ||||||
Accrued expenses and other liabilities | ( | ) | ||||||
Net cash used in operating activities | ( | ) | ( | ) | ||||
Cash flows from investing activities: | ||||||||
Investment in bank deposits | ( | ) | ( | ) | ||||
Proceeds from bank deposits | ||||||||
Purchase of property and equipment | ( | ) | ( | ) | ||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of Ordinary shares, warrants and pre-funded warrants, net | ||||||||
Payments due to long-term debt | ( | ) | ( | ) | ||||
Payment of fees due to modification of debt | ( | ) | ||||||
Proceeds from exercise of options | ||||||||
Net cash provided by financing activities | ||||||||
Decrease in cash, cash equivalents and restricted deposits | ( | ) | ( | ) | ||||
Cash, cash equivalents and restricted deposits at the beginning of the period | ||||||||
Cash, cash equivalents and restricted deposits at the end of the period | $ | $ |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
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POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Six
Months Ended June 30, | ||||||||
2024 | 2023 | |||||||
Unaudited | ||||||||
Non-cash activities: | ||||||||
Modification of warrants | $ | $ | ||||||
Credit line derivative | $ | $ | ||||||
Issuance costs | $ | $ | ||||||
Right-of-use asset recognized with corresponding lease liability | $ | $ | ||||||
Supplemental disclosures of cash flows: | ||||||||
Interest paid | $ | $ | ||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted deposits | ||||||||
Restricted deposits included in other long-term assets | ||||||||
Cash, cash equivalents and restricted deposits at the end of the period | $ | $ |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
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POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
NOTE 1:- | GENERAL |
a. | PolyPid Ltd. (the “Company”) was incorporated under the laws of Israel and commenced operations on February 28, 2008. The Company is a Phase 3 biopharmaceutical company focused on developing targeted, locally administered, and prolonged-release therapeutics using its proprietary PLEX (Polymer-Lipid Encapsulation matriX) technology. The Company’s product candidates are designed to address unmet medical needs by delivering active pharmaceutical ingredients, locally at predetermined release rates and durations over extended periods ranging from days to several months. The Company is initially focused on the development of its lead product candidate, D-PLEX100, which incorporates an antibiotic for the prevention of surgical site infections (“SSIs”) in bone and soft tissue. Through June 30, 2024, the Company has been primarily engaged in research and development. |
The Company’s wholly owned subsidiaries include a subsidiary in the United States (the “US Subsidiary”) and a subsidiary in Romania. The US Subsidiary’s operation focuses on marketing and business development of the Company’s operation in the United States.
b. | On September 18, 2023, the Company’s board of directors approved 1-for-30 reverse share split. No fractional shares were issued, and no cash or other consideration was paid as a result of the reverse share split. Instead, the Company issued one additional whole share of the post-reverse share split Ordinary share to any shareholder who otherwise would have received a fractional share as a result of the reverse share split. The amount of authorized Ordinary shares was not affected. All issued and outstanding share and per share amounts included in the accompanying consolidated financial statements have been adjusted to reflect this reverse share split for all periods presented. |
c. | The Company’s activities since inception have consisted of performing research and development activities. Successful completion of the Company’s development programs and, ultimately, the attainment of profitable operations is dependent on future events, including, among other things, its ability to secure financing; obtain marketing approval from regulatory authorities; access potential markets; build a sustainable customer base; attract, retain and motivate qualified personnel; and develop strategic alliances. The Company’s operations are funded by its shareholders and research and development grants and the Company intends to seek further private or public financing as well as make applications for further research and development grants for continuing its operations. Although management believes that the Company will be able to successfully fund its operations, there can be no assurance that the Company will be able to do so or that the Company will ever operate profitably. |
In
September 2022,
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POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
NOTE 1:- | GENERAL (CONT.) |
d. | The Company expects to continue to incur substantial losses over the next several years during its clinical development phase. To fully execute its business plan, the Company will need to complete Phase 3 clinical studies and certain development activities as well as manufacture the required clinical and commercial production batches in the pilot manufacturing plant. Further, the Company’s product candidates will require regulatory approval prior to commercialization, and the Company will need to establish sales, marketing and logistic infrastructures. These activities may span many years and require substantial expenditures to complete and may ultimately be unsuccessful. Any delays in completing these activities could adversely impact the Company. |
As
of June 30, 2024, the Company’s cash, cash equivalents and short-term deposits amounted to a total of $
Management plans to seek additional equity financing through private and public offerings or strategic partnerships and, in the longer term, by generating revenues from product sales.
The Company’s future operations are highly dependent on a combination of factors, including (i) completion of all required clinical studies; (ii) the success of its research and development activities; (iii) manufacture of all required clinical and commercial production batches; (iv) marketing approval by the relevant regulatory authorities; and (v) market acceptance of the Company’s product candidates.
There can be no assurance that the Company will succeed in achieving the clinical, scientific and commercial milestones as detailed above.
Based on the abovementioned, as of the approval date of these interim consolidated financial statements, the Company has not raised the necessary funding in order to continue its activity for a period of at least one year. Therefore, these factors raise a substantial doubt about the Company’s ability to continue as a going concern. The interim condensed consolidated financial statements do not include any adjustments to the carrying amounts and classifications of assets and liabilities that might result should the Company be unable to continue as a going concern.
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES |
a. | Basis of presentation and summary of significant accounting policies: |
The accompanying interim condensed consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States and are consistent in all material respects with those applied in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission on March 6, 2024.
The preparation of interim condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and judgments that affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions, but are not limited to, the fair value of financial assets and liabilities, the useful lives of property and equipment and the determination of the fair value of the Company’s share-based compensation. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.
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POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (CONT.) |
a. | Basis of presentation and summary of significant accounting policies: (Cont.) |
The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023 (the “2023 Consolidated Financial Statements”). Interim results are not necessarily indicative of the results for a full year.
There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023.
b. | Basic and diluted loss per share: |
The Company’s basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method or the if-converted method based on the nature of such securities. Diluted loss per share is the same as basic loss per share in periods when the effects of potentially dilutive shares of ordinary shares are anti-dilutive.
c. | Fair value of financial instruments: |
Under U.S. GAAP, fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and requires that assets and liabilities carried at fair value are classified and disclosed in the following three categories:
Level 1 - | Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets and liabilities. | |
Level 2 - | Include other inputs that are directly or indirectly observable in the marketplace. | |
Level 3 - | Unobservable inputs which are supported by little or no market activity. |
The carrying amounts of cash and cash equivalents, restricted deposits, short-term deposits, long-term debt, other current assets, trade payables, accrued expenses and other current and non-current liabilities approximate their fair value due to the short-term maturity of such instruments.
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates.
d. | Recently adopted accounting pronouncements: |
As an “Emerging Growth Company”, the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to its business or that no material effect is expected on the condensed consolidated financial statements as a result of their future adoption.
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POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (CONT.) |
e. | Recently issued accounting pronouncements, not yet adopted: |
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in Accounting Standards Codification (“ASC”) 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09.
NOTE 3:- | LEASES |
The Company leases substantially all of its office space and vehicles under operating leases. The Company’s leases have original lease periods expiring between 2024 and 2027.
On January 14, 2024, the Company entered into a new lease agreement for one of its premises, with the lease term extending through July 2027.
The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably certain. Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods, where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early.
Weighted average remaining lease term (years) | ||||
Weighted average discount rates | % |
Operating lease cost | $ | |||
Cash payments for operating leases | $ |
The remainder of 2024 | $ | |||
2025 | ||||
2026 | ||||
2027 | ||||
Total undiscounted lease payments | ||||
Less - imputed interest | ( | ) | ||
Present value of lease liabilities | $ |
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POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
NOTE 4:- | LINE OF CREDIT ARRANGEMENT |
Further to the discussion in Note 7 in the 2023 Consolidated Financial Statements regarding the secured line of credit agreement signed on April 5, 2022, with Kreos Capital VI (Expert Fund) LP (“Kreos”) (the “Credit Line” or “debt”), the Company entered into an amendment to the Credit Line on March 29, 2023 (the “Amendment”).
On
January 9, 2024, the Company repaid $
During
the six-month periods ended on June 30, 2024 and 2023, the Company recognized $
NOTE 5:- | COMMITMENTS AND CONTINGENT LIABILITIES |
In
connection with its research and development programs, through June 30, 2024, the Company received participation payments from the Israel
Innovation Authority of the Ministry of Economy in Israel (“IIA”) in the aggregate amount of $
For the six-month period ended June 30, 2024, no new participation payments were received.
Through June 30, 2024, no royalties have been paid or accrued.
NOTE 6:- | SHAREHOLDERS’ EQUITY (DEFICIT) |
a. |
June 30, 2024 | December 31, 2023 | |||||||||||||||
Unaudited | Audited | |||||||||||||||
Authorized | Issued
and outstanding | Authorized | Issued
and outstanding | |||||||||||||
Number of shares | ||||||||||||||||
Ordinary shares |
b. | Financing rounds: |
On
March 29, 2023, the Company entered into a private placement of unregistered pre-funded warrants to purchase up to
On
March 31, 2023, the Company closed a public offering which was comprised of
Following
the Public Offering, the Company did not have a sufficient number of authorized Ordinary shares to cover
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POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
NOTE 6:- | SHAREHOLDERS’ EQUITY (DEFICIT) (CONT.) |
b. | Financing rounds: (Cont.) |
On
May 5, 2023, the shareholders of the Company approved to increase the Company’s authorized share capital by
On
May 11, 2023, all of the PFWs were exercised into
On
January 4, 2024, the Company entered into a definitive securities purchase agreement for a private placement financing, led by leading
U.S. life sciences-focused investors and certain existing investors. Under the securities purchase agreement, the investors purchased
In
accordance with ASC 480 and ASC 815, the pre-funded warrants and the warrants were qualified for equity accounting. The fair value for
warrant to purchase an ordinary share is $
Dividend yield (%) | ||||
Expected volatility (%) | ||||
Risk-free interest rate (%) | ||||
Expected term (in years) |
c. | Share option plan: |
The Company’s board of directors authorizes option grants through its 2012 Share Option Plan to officers, directors, advisors, management and other key employees. The options granted generally have a four-year vesting period and expire ten years after the date of grant. Options granted under the Company’s option plan that are canceled or forfeited before expiration become available for future grant.
On
May 6, 2024, the Company’s board of directors approved to increase the Company’s options pool by an additional
As
of June 30, 2024,
During
the first quarter of 2023, the Company decreased the exercise price of
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POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
NOTE 6:- | SHAREHOLDERS’ EQUITY (DEFICIT) (CONT.) |
c. | Share option plan: (Cont.) |
On
May 5, 2023, the Company’s board of directors also approved a similar exercise price decrease of
Number of options | Weighted average exercise price | Aggregate intrinsic value | Weighted contractual | |||||||||||||
Outstanding at beginning of period | $ | $ | ||||||||||||||
Granted | $ | |||||||||||||||
Forfeited and expired | ( | ) | $ | |||||||||||||
Outstanding at end of period | $ | $ | ||||||||||||||
Exercisable options | $ | $ | ||||||||||||||
Vested and expected to vest | $ | $ |
Dividend yield (%) | ||||
Expected volatility (%) | ||||
Risk-free interest rate (%) | ||||
Expected term (in years) |
Six Months Ended June 30, | ||||||||
2024 | 2023 | |||||||
Unaudited | ||||||||
Research and development | $ | $ | ||||||
Marketing and business development | ||||||||
General and administrative | ||||||||
$ | $ |
As
of June 30, 2024, there were unrecognized compensation costs of $
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POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
NOTE 6:- | SHAREHOLDERS’ EQUITY (DEFICIT) (CONT.) |
c. | Share option plan: (Cont.) |
On
May 6, 2024, the Board of directors granted a total of
The
average exercise price for Milestone-Based Options is $
As of June 30, 2024, the milestone condition is not probable of being achieved; therefore, no compensation costs were recognized.
d. | Warrants and pre-funded warrants: |
Grant date | Warrants outstanding as of June 30, 2024 | Average Exercise price per share ($) | Warrants exercisable as of June 30, 2024 | Exercisable through | ||||||||||
September 2020 | $ | |||||||||||||
April 2022 | $ | |||||||||||||
July 2022 | $ | |||||||||||||
January 2024 | $ | |||||||||||||
January 2024 | $ | |||||||||||||
No Warrants were exercised during the six-month period ended June 30, 2024.
*)
NOTE 7:- | BASIC AND DILUTED LOSS PER SHARE |
Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Unaudited | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of loss attributable to ordinary shareholders | $ | $ | $ | $ | ||||||||||||
Denominator: | ||||||||||||||||
Weighted average Ordinary shares outstanding | ||||||||||||||||
$ | $ | $ | $ |
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POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
NOTE 7:- | BASIC AND DILUTED LOSS PER SHARE (CONT.) |
Three
and Six Months Ended June 30, | ||||||||
2024 | 2023 | |||||||
Unaudited | ||||||||
Ordinary share options | ||||||||
Warrants | ||||||||
NOTE 8:- | SUBSEQUENT EVENTS |
1. | On July 2, 2024, the shareholders meeting approved a grant of |
2. | On August 1, 2024, the Company entered into a definitive securities purchase agreement for a private placement financing. Under the securities purchase agreement, the investors have agreed to purchase |
3. | Further to the discussed in Note 4, on August 1, 2024, the Company entered into a second amendment (the “Second Amendment”) to the Credit Line. Pursuant to the Second Amendment, |
As
part of the Second Amendment, the Company issued to Kreos a warrant to purchase
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