Full Press Release Details
AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
| Page | |
| Interim Condensed Consolidated Balance Sheets | 2 - 3 |
| Interim Condensed Consolidated Statements of Operations | 4 |
| Interim Condensed Consolidated Statements of Shareholders' Equity | 5-6 |
| Interim Condensed Consolidated Statements of Cash Flows | 7 |
| Notes to Interim Condensed Consolidated Financial Statements | 8 - 17 |
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POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED
U.S. dollars in thousands
| June 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 11,640 | $ | 9,819 | ||||
| Restricted cash | 576 | 397 | ||||||
| Short-term deposits | 12,139 | 22,384 | ||||||
| Prepaid expenses and other current assets | 661 | 2,211 | ||||||
| Total current assets | 25,016 | 34,811 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Property and equipment, net | 9,183 | 8,761 | ||||||
| Other long-term assets | 618 | 663 | ||||||
| Total long-term assets | 9,801 | 9,424 | ||||||
| Total assets | $ | 34,817 | $ | 44,235 |
The accompanying notes are an integral
part of the interim condensed consolidated financial statements.
POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED
U.S. dollars in thousands (except share and
| June 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Unaudited | Audited | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Current maturities of long-term debt | $ | 2,168 | $ | - | ||||
| Trade payables | 2,430 | 4,136 | ||||||
| Accrued expenses and other current liabilities | 4,106 | 3,940 | ||||||
| Total current liabilities | 8,704 | 8,076 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term debt | 6,919 | - | ||||||
| Other liabilities | 84 | 199 | ||||||
| Total long-term liabilities | 7,003 | 199 | ||||||
| COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Ordinary shares with no par value - Authorized: 47,800,000 shares at June 30, 2022 (unaudited) and December 31, 2021 (audited); Issued and outstanding: 19,551,173 and 18,756,570 shares at June 30, 2022 (unaudited) and December 31, 2021 (audited), respectively | - | - | ||||||
| Additional paid-in capital | 217,716 | 210,847 | ||||||
| Accumulated deficit | ( 198,606 | ) | ( 174,887 | ) | ||||
| Total shareholders' equity | 19,110 | 35,960 | ||||||
| Total liabilities and shareholders' equity | $ | 34,817 | $ | 44,235 |
The accompanying notes are an integral part of
the interim condensed consolidated financial statements.
POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and
| Six Months Ended | Three Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development, net | $ | 17,095 | $ | 13,460 | $ | 8,398 | $ | 7,442 | ||||||||
| Marketing and business development | 1,698 | 1,391 | 923 | 739 | ||||||||||||
| General and administrative | 4,723 | 4,576 | 2,243 | 2,449 | ||||||||||||
| Operating loss | 23,516 | 19,427 | 11,564 | 10,630 | ||||||||||||
| Financial expense (income), net | 203 | ( 263 | ) | 281 | ( 153 | ) | ||||||||||
| Loss | $ | 23,719 | $ | 19,164 | $ | 11,845 | $ | 10,477 | ||||||||
| Basic and diluted loss per Ordinary share | $ | 1.23 | $ | 1.03 | $ | 0.61 | $ | 0.56 | ||||||||
| Weighted average number of Ordinary shares used in computing basic and diluted loss per share | 19,222,423 | 18,685,906 | 19,505,246 | 18,747,967 |
The accompanying notes are
an integral part of the interim condensed consolidated financial statements.
POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF SHAREHOLDERS' EQUITY
U.S. dollars in thousands (except share and
| Three Months Ended June 30, 2022 | Number of Ordinary shares | Additional paid-in capital | Accumulated deficit | Total shareholders' equity | ||||||||||||
| Balances as of March 31, 2022 | 19,470,757 | $ | 215,606 | $ | ( 186,761 | ) | $ | 28,845 | ||||||||
| Share-based compensation | - | 1,266 | - | 1,266 | ||||||||||||
| Issuance of shares, net (1) | 57,722 | 285 | - | 285 | ||||||||||||
| Issuance of warrants | - | 468 | - | 468 | ||||||||||||
| Exercise of options | 22,694 | 91 | - | 91 | ||||||||||||
| Loss | - | - | ( 11,845 | ) | ( 11,845 | ) | ||||||||||
| Balances as of June 30, 2022 (unaudited) | 19,551,173 | $ | 217,716 | $ | ( 198,606 | ) | $ | 19,110 |
| Three Months Ended June 30, 2021 | Number of Ordinary shares | Additional paid-in capital | Accumulated deficit | Total shareholders' equity | ||||||||||||
| Balances as of March 31, 2021 | 18,745,142 | $ | 207,120 | $ | ( 140,973 | ) | $ | 66,147 | ||||||||
| Share-based compensation | - | 1,153 | - | 1,153 | ||||||||||||
| Exercise of options | 11,428 | 62 | - | 62 | ||||||||||||
| Loss | - | - | ( 10,477 | ) | ( 10,477 | ) | ||||||||||
| Balances as of June 30, 2021 (unaudited) | 18,756,570 | $ | 208,335 | $ | ( 151,450 | ) | $ | 56,885 |
The accompanying notes are an integral part of
the interim condensed consolidated financial statements.
POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF SHAREHOLDERS' EQUITY
U.S. dollars in thousands (except share and
| Six Months Ended June 30, 2022 | Number of Ordinary shares | Additional paid-in capital | Accumulated deficit | Total shareholders' equity | ||||||||||||
| Balances as of January 1, 2022 | 18,756,570 | $ | 210,847 | $ | ( 174,887 | ) | $ | 35,960 | ||||||||
| Share-based compensation | - | 2,539 | - | 2,539 | ||||||||||||
| Issuance of shares, net (1) | 768,622 | 3,754 | - | 3,754 | ||||||||||||
| Issuance of warrants | - | 468 | - | 468 | ||||||||||||
| Exercise of options | 25,981 | 108 | - | 108 | ||||||||||||
| Loss | - | - | ( 23,719 | ) | ( 23,719 | ) | ||||||||||
| Balances as of June 30, 2022 (unaudited) | 19,551,173 | $ | 217,716 | $ | ( 198,606 | ) | $ | 19,110 |
| Six Months Ended June 30, 2021 | Number of Ordinary shares | Additional paid-in capital | Accumulated deficit | Total shareholders' equity | ||||||||||||
| Balances as of January 1, 2021 | 18,494,739 | $ | 205,063 | $ | ( 132,286 | ) | $ | 72,777 | ||||||||
| Share-based compensation | - | 2,238 | - | 2,238 | ||||||||||||
| Exercise of warrants | 184,473 | 632 | - | 632 | ||||||||||||
| Exercise of options | 77,358 | 402 | - | 402 | ||||||||||||
| Loss | - | - | ( 19,164 | ) | ( 19,164 | ) | ||||||||||
| Balances as of June 30, 2021 (unaudited) | 18,756,570 | $ | 208,335 | $ | ( 151,450 | ) | $ | 56,885 |
| Year Ended December 31, 2021 | Number of Ordinary shares | Additional paid-in capital | Accumulated deficit | Total shareholders' equity | ||||||||||||
| Balances as of January 1, 2021 | 18,494,739 | $ | 205,063 | $ | ( 132,286 | ) | $ | 72,777 | ||||||||
| Share-based compensation | - | 4,750 | - | 4,750 | ||||||||||||
| Exercise of warrants | 184,473 | 632 | - | 632 | ||||||||||||
| Exercise of options | 77,358 | 402 | - | 402 | ||||||||||||
| Loss | - | - | ( 42,601 | ) | ( 42,601 | ) | ||||||||||
| Balances as of December 31, 2021 (audited) | 18,756,570 | $ | 210,847 | $ | ( 174,887 | ) | $ | 35,960 |
The accompanying notes are an integral part of
the interim condensed consolidated financial statements.
POLYPID LTD. AND ITS SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
| Six Months Ended June 30, | ||||||||
| 2022 | 2021 | |||||||
| Unaudited | ||||||||
| Cash flows from operating activities: | ||||||||
| Loss | $ | ( 23,719 | ) | $ | ( 19,164 | ) | ||
| Adjustments to reconcile loss to net cash used in operating activities: | ||||||||
| Depreciation of property and equipment | 805 | 547 | ||||||
| Non-cash financial expenses, net | 146 | - | ||||||
| Share-based compensation expenses | 2,539 | 2,238 | ||||||
| Changes in assets and liabilities: | ||||||||
| Prepaid expenses and other assets | 1,584 | 1,387 | ||||||
| Trade payables | ( 1,748 | ) | 782 | |||||
| Accrued expenses and other liabilities | 51 | 659 | ||||||
| Net cash used in operating activities | ( 20,342 | ) | ( 13,551 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Short-term and long-term deposits, net | 10,245 | 16,819 | ||||||
| Purchase of property and equipment | ( 1,185 | ) | ( 391 | ) | ||||
| Pre-payments for equipment | - | ( 787 | ) | |||||
| Net cash provided by investing activities | 9,060 | 15,641 | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of Ordinary shares, net | 3,754 | - | ||||||
| Proceeds from long-term debt, net | 9,331 | - | ||||||
| Payments due to long-term debt | ( 406 | ) | - | |||||
| Proceeds from issuance of warrants | 468 | - | ||||||
| Proceeds from exercise of options | 108 | 402 | ||||||
| Proceeds from exercise of warrants | - | 632 | ||||||
| Net cash provided by financing activities | 13,255 | 1,034 | ||||||
| Increase in cash, cash equivalents and restricted cash | 1,973 | 3,124 | ||||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 10,456 | 4,908 | ||||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 12,429 | $ | 8,032 | ||||
| Non-cash activities: | ||||||||
| Property and equipment acquired by credit | $ | 42 | $ | - | ||||
| Supplemental disclosures of cash flows: | ||||||||
| Interest paid | $ | 77 | $ | - | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash and cash equivalents | $ | 11,640 | $ | 7,448 | ||||
| Restricted cash | 789 | 584 | ||||||
| $ | 12,429 | $ | 8,032 |
The accompanying notes are an integral part of
the interim condensed consolidated financial statements.
POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and
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.
no assurance that the Company will be successful in obtaining additional financing on favorable terms, or at all, or will succeed in achieving
the clinical, scientific and commercial milestones as detailed above.
As of June 30, 2022,
the Company's cash, cash equivalents and short-term deposits amounted to a total of $23,779. During the six-month period ended June 30,
2022, the Company incurred a loss of $23,719 and had negative cash flows from operating activities of $20,342. In addition, the Company
had an accumulated deficit of $198,606 as of June 30, 2022.
to seek additional equity financing through private and public offerings or strategic partnerships and, in the longer term, by generating
revenues from product sales.
Based on the abovementioned,
as of the approval date of these interim condensed 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
POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and
NOTE 2:- SIGNIFICANT
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, 2021, filed with the Securities and Exchange Commission (the "SEC") on February
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.
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,
2021. Interim results are not necessarily indicative of the results for a full year.
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, 2021.
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.
US 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 . |
POLYPID LTD. AND ITS SUBSIDIARY
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and
NOTE 2:- SIGNIFICANT
ACCOUNTING POLICIES (CONT.)