Full Press Release Details
CONSOLIDATED FINANCIAL STATEMENTS
DOLLARS IN THOUSANDS
| Page | ||
| Interim Consolidated Balance Sheets | 2 - 3 | |
| Interim Consolidated Statements of Operations | 4 | |
| Interim Consolidated Statements of Changes in Shareholders' Equity | 5 | |
| Interim Consolidated Statements of Cash Flows | 6 | |
| Notes to Interim Consolidated Financial Statements | 7 - 19 |
ALPHA TAU MEDICAL LTD.
CONSOLIDATED BALANCE SHEETS
| December 31, | June 30, | |||||||||||
| 2022 | 2023 | |||||||||||
| Note | Audited | Unaudited | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | $ | 5,836 | $ | 855 | ||||||||
| Restricted cash | 850 | 834 | ||||||||||
| Short-term deposits | 98,694 | 92,672 | ||||||||||
| Prepaid expenses and other receivables | 1,097 | 1,698 | ||||||||||
| Total current assets | 106,477 | 96,059 | ||||||||||
| LONG-TERM ASSETS: | ||||||||||||
| Long term prepaid expenses | 391 | 441 | ||||||||||
| Property and equipment, net | 7,471 | 7,549 | ||||||||||
| Right-of-use asset | 3 | 5,810 | 7,157 | |||||||||
| Total long-term assets | 13,672 | 15,147 | ||||||||||
| Total assets | $ | 120,149 | $ | 111,206 |
accompanying notes are an integral part of the interim consolidated financial statements.
ALPHA TAU MEDICAL LTD.
CONSOLIDATED BALANCE SHEETS
| December 31, | June 30, | |||||||||||
| 2022 | 2023 | |||||||||||
| Note | Audited | Unaudited | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Trade payables | 1,423 | 1,789 | ||||||||||
| Other payables and accrued expenses | 2,246 | 2,781 | ||||||||||
| Current maturities of operating lease liabilities | 3 | 669 | 846 | |||||||||
| Total current liabilities | 4,338 | 5,416 | ||||||||||
| LONG-TERM LIABILITIES: | ||||||||||||
| Warrants liability | 5 | 5,630 | 7,794 | |||||||||
| Operating lease liabilities | 3 | 4,524 | 5,433 | |||||||||
| Total long-term liabilities | 10,154 | 13,227 | ||||||||||
| Total liabilities | 14,492 | 18,643 | ||||||||||
| COMMITMENTS AND CONTINGENCIES | 6 | |||||||||||
| SHAREHOLDERS' EQUITY: | 7 | |||||||||||
| Ordinary shares of no -par value per share - Authorized: 362,116,800 shares as of December 31, 2022 and June 30, 2023; Issued and outstanding: 69,105,000 and 69,373,135 shares as of December 31, 2022 and June 30, 2023, respectively | - | - | ||||||||||
| Additional paid-in capital | 192,259 | 196,045 | ||||||||||
| Accumulated deficit | ( 86,602 | ) | ( 103,482 | ) | ||||||||
| Total shareholders' equity | 105,657 | 92,563 | ||||||||||
| Total liabilities and shareholders' equity | $ | 120,149 | $ | 111,206 |
accompanying notes are an integral part of the interim consolidated financial statements.
ALPHA TAU MEDICAL LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
in thousands (except share and per share data)
| Six months ended June 30, | ||||||||||||
| Note | 2022 | 2023 | ||||||||||
| Unaudited | ||||||||||||
| Research and development, net | $ | 10,683 | $ | 12,261 | ||||||||
| Marketing expenses | 329 | 920 | ||||||||||
| General and administrative | 5,781 | 3,631 | ||||||||||
| Total operating loss | 16,793 | 16,812 | ||||||||||
| Financial expenses, net | 8 | 10,942 | 21 | |||||||||
| Loss before taxes on income | 27,735 | 16,833 | ||||||||||
| Tax on income | 8 | 47 | ||||||||||
| Net loss | 27,743 | 16,880 | ||||||||||
| Net comprehensive loss | $ | 27,743 | $ | 16,880 | ||||||||
| Net loss per share, basic and diluted | $ | ( 0.48 | ) | $ | ( 0.24 | ) | ||||||
| Weighted-average shares used in computing net loss per share, basic and diluted | 58,023,875 | 69,262,381 |
accompanying notes are an integral part of the interim consolidated financial statements.
ALPHA TAU MEDICAL LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
in thousands (except share and per share data)
| Convertible | Additional | Total | ||||||||||||||||||||||||||
| Preferred shares | Ordinary shares | paid-in | Accumulated | shareholders' | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | capital | deficit | equity | ||||||||||||||||||||||
| Balances as of January 1, 2022 | 13,739,186 | $ | 53,964 | 40,528,913 | $ | - | $ | 18,063 | $ | ( 52,840 | ) | $ | ( 34,777 | ) | ||||||||||||||
| Issuance of ordinary shares upon exercise of warrants | - | - | 1,269,213 | - | 3,257 | - | 3,257 | |||||||||||||||||||||
| Issuance of ordinary shares in connection with SPAC merger and PIPE financing | - | - | 12,435,849 | - | 74,952 | - | 74,952 | |||||||||||||||||||||
| Conversion of convertible preferred shares in connection with SPAC merger | ( 13,739,186 | ) | ( 53,964 | ) | 14,270,797 | - | 53,964 | - | 53,964 | |||||||||||||||||||
| Conversion of Warrants to Convertible Preferred shares in connection with SPAC merger | - | - | - | - | 35,170 | - | 35,170 | |||||||||||||||||||||
| Vesting of RSUs | - | - | 70,625 | - | - | - | - | |||||||||||||||||||||
| Share-based compensation | - | - | - | - | 3,445 | - | 3,445 | |||||||||||||||||||||
| Net loss | - | - | - | - | - | ( 27,743 | ) | ( 27,743 | ) | |||||||||||||||||||
| Balances as of June 30, 2022 (unaudited) | - | $ | - | 68,575,397 | $ | - | $ | 188,851 | $ | ( 80,583 | ) | $ | 108,268 |
| Convertible | Additional | Total | ||||||||||||||||||||||||||
| Preferred shares | Ordinary shares | paid-in | Accumulated | shareholders' | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | capital | deficit | equity | ||||||||||||||||||||||
| Balances as of January 1, 2023 | - | $ | - | 69,105,000 | $ | - | $ | 192,259 | $ | ( 86,602 | ) | $ | 105,657 | |||||||||||||||
| - | ||||||||||||||||||||||||||||
| Issuance of ordinary shares upon exercise of warrants | - | - | 67,897 | - | - | - | - | |||||||||||||||||||||
| Issuance of ordinary shares upon exercise of share options | - | - | 2,500 | - | 2 | - | 2 | |||||||||||||||||||||
| Vesting of RSUs | - | - | 197,738 | - | - | - | ||||||||||||||||||||||
| Share-based compensation | - | - | - | - | 3,784 | - | 3,784 | |||||||||||||||||||||
| Net loss | - | - | - | - | - | ( 16,880 | ) | ( 16,880 | ) | |||||||||||||||||||
| Balances as of June 30, 2023 (unaudited) | - | $ | - | 69,373,135 | $ | - | $ | 196,045 | $ | ( 103,482 | ) | $ | 92,563 |
accompanying notes are an integral part of the interim consolidated unaudited financial statements.
ALPHA TAU MEDICAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six months ended June 30, | ||||||||
| 2022 | 2023 | |||||||
| Unaudited | ||||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | ( 27,743 | ) | $ | ( 16,880 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 475 | 512 | ||||||
| Share-based compensation | 3,445 | 3,784 | ||||||
| Non-cash financial expenses (income), net | ( 97 | ) | 509 | |||||
| Change in the fair value of Warrants Liabilities | 11,105 | 2,164 | ||||||
| Increase in prepaid expenses and other receivables | ( 2,443 | ) | ( 601 | ) | ||||
| Decrease (increase) in long term prepaid expenses | 1,821 | ( 50 | ) | |||||
| (Decrease) increase in trade payables | ( 6 | ) | 366 | |||||
| (Decrease) increase in other payables and accrued expenses | ( 1,885 | ) | 535 | |||||
| Change in operating lease liabilities | - | ( 633 | ) | |||||
| Change in operating lease right-of-use assets | - | 372 | ||||||
| Net cash used in operating activities | ( 15,328 | ) | ( 9,922 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Investment in short-term deposits | ( 100,000 | ) | ( 98,431 | ) | ||||
| Redemption of short-term deposits | 8,000 | 103,995 | ||||||
| Purchase of property and equipment | ( 675 | ) | ( 590 | ) | ||||
| Net cash (used in) provided by investing activities | ( 92,675 | ) | 4,974 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of warrants | 3,257 | - | ||||||
| Proceeds from exercise of options | - | 2 | ||||||
| Proceeds from SPAC merger and PIPE financing, net of transaction cost | 93,543 | - | ||||||
| Net cash provided by financing activities | 96,800 | 2 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( 288 | ) | ( 51 | ) | ||||
| Decrease in cash, cash equivalents and restricted cash | ( 11,491 | ) | ( 4,997 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 23,854 | 6,686 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 12,363 | $ | 1,689 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Income tax payments | $ | 2 | $ | 13 | ||||
| Interest received | $ | 50 | $ | 2,394 |
accompanying notes are an integral part of the interim consolidated financial statements.
ALPHA TAU MEDICAL LTD.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share
Tau Medical Ltd. ("the Company") is an Israeli clinical-stage oncology therapeutics company that focuses on research, development
and commercialization of Alpha DaRT (Diffusing Alpha-emitters Radiation Therapy) for the treatment of solid cancer. The Company was established
in November 2015 and began its operations in January 2016, and shortly thereafter acquired the full rights to the Alpha DaRT technology
from Althera Medical Ltd., ("Althera"), developed in 2003 at Tel Aviv University.
August 2017 the Company established a fully owned subsidiary in the United States - "Alpha Tau Medical Inc." ("ATM Inc").
ATM Inc began its activity in August 2018.
January 2018 the Company established a subsidiary in Japan "Alpha Tau Medical KK" (hereafter: ATM KK). ATM KK began its activity
in January 2018. Since July 2019, the Company holds 100% of ATM KK.
July 2019, the Company established a fully owned subsidiary in Canada "Alpha Tau Medical Canada Inc." (hereafter: ATM Canada
Inc). ATM Canada Inc began its activity in March 2020.
July 7, 2021, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Healthcare Capital
Corp., a Delaware corporation ("HCCC"), and Archery Merger Sub Inc., a Delaware corporation and wholly-owned subsidiary of
the Company ("Merger Sub"). As part of the completion of business combination on March 7, 2022 (the "Closing Date"),
the Merger Sub was merged with and into HCCC (the "Merger"), with HCCC surviving the merger as a wholly owned subsidiary of
the Company. In July 2022, HCCC was dissolved.
of HCCC's outstanding warrants to purchase one share of HCCC common stock, including both the HCCC warrants issued to public shareholders
in HCCC's initial public offering (the "Public Warrants") and the HCCC warrants issued in a private placement to HCCC's
sponsors in HCCC's initial public offering (the "Private Warrants") (together, the "Warrants liability"),
were converted into the right to receive an equal number of warrants to purchase one Ordinary Share of the Company. A total of 15,891,984
warrants to purchase one Ordinary Share were issued to holders of HCCC warrants.
July 7, 2021, the Company entered into Subscription Agreements, together with a number of subsequent agreements since with certain
investors (the "PIPE Investors") pursuant to which, among other things, the PIPE Investors agreed to purchase on the Closing
Date the Company's ordinary shares at a price equal to $10.00 per share on the terms and subject to the conditions set forth in
the Subscription Agreements (the "PIPE Financing"). In connection with the closing of the Business Combination, the Company
consummated the sale of 9,251,006 ordinary shares for gross proceeds of $92,510 pursuant to the PIPE Financing.
gross proceeds resulted from the Merger transaction were approximately $104,052 out of which total transaction costs amounted to approximately
$5,713. The transaction costs related to the Warrants liability in the amount of $817 were recognized as expenses in the Company's
statement of operations for the period ended June 30, 2022. The residual amount was deducted of additional paid in capital.
ALPHA TAU MEDICAL LTD.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
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 registrational clinical studies and certain development activities as well as manufacture
the required clinical and commercial products in its manufacturing plants. Further, the Company will seek further regulatory approvals
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.
of June 30, 2023, the Company had cash, cash equivalents, short-term deposits and restricted cash of $94,361. During the six months ended
June 30, 2023, the Company incurred a net loss of $16,880 and had negative cash flows from operating activities of $9,922. In addition,
the Company had an accumulated deficit of $103,482 on June 30, 2023. The Company believes that its existing capital resources will be
adequate to satisfy its expected liquidity requirements for at least two years.
2:- SIGNIFICANT ACCOUNTING POLICIES
accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting
principles ("U.S. GAAP") for interim financial information. In the opinion of management, the unaudited interim consolidated
financial statements include all adjustments necessary for a fair presentation.
balance sheet as of December 31, 2022 has been derived from the audited consolidated financial statements of the Company at that date
but does not include all information and footnotes required by U.S. GAAP for complete financial statements.
accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial
statements and accompanying notes for the year ended December 31, 2022.
significant accounting policies disclosed in the Company's audited 2022 consolidated financial statements and notes thereto have been
applied consistently to these unaudited interim consolidated financial statements. Results for the six months ended June 30, 2023 are
not necessarily indicative of results that may be expected for the year ending December 31, 2023.
ALPHA TAU MEDICAL LTD.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.)
preparation of the unaudited interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates,
judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the interim consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available
at the time they are made. Actual results could differ from those estimates.
cash is primarily invested in bank deposit and is used as security for the Company's lease commitments. The following table provides
a reconciliation of the cash and cash equivalents balances reported on the balance sheets and the cash, cash equivalents and restricted
cash balances reported in the statements of cash flows:
| June 30, | ||||||||
| 2022 | 2023 | |||||||
| Unaudited | ||||||||
| Cash and cash equivalents, as reported on the balance sheets | $ | 11,571 | $ | 855 | ||||
| Restricted cash, as reported on the balance sheets | 792 | 834 | ||||||
| Cash, cash equivalents, and restricted cash, as reported in the statements of cash flows | $ | 12,263 | $ | 1,689 |
Company determines if an arrangement meets the definition of a lease at the inception of the lease.
("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company's
obligation to make lease payments arising from the lease agreement. ROU assets are initially measured at amounts, which represents the
discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially
measured at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit
rate within the operating leases is generally not determinable, therefore the Company uses the Incremental Borrowing Rate ("IBR")