Full Press Release Details
TECHNOLOGIES OXY B.H.N. LTD.
CONDENSED FINANCIAL STATEMENTS
_______________________
TECHNOLOGIES OXY B.H.N. LTD.
| Page | ||
| Interim condensed balance sheets | 1-2 | |
| Interim condensed statements of comprehensive loss | 3 | |
| Interim condensed statements of changes in shareholders' equity | 4 | |
| Interim condensed statements of cash flows | 5 | |
| Notes to the unaudited interim condensed financial statements | 6 -17 |
TECHNOLOGIES OXY B.H.N. LTD.
INTERIM CONDENSED BALANCE SHEETS
dollars in thousands)
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | 3,550 | 5,041 | ||||||
| Deposits | 3,708 | 2,320 | ||||||
| Other current assets | 450 | 432 | ||||||
| Inventory | 376 | - | ||||||
| Total current assets | $ | 8,084 | $ | 7,793 | ||||
| Non-Current Assets: | ||||||||
| Right of use assets, net | 897 | 1,011 | ||||||
| Property, plant and equipment, net | 441 | 506 | ||||||
| Total non-current assets | $ | 1,338 | $ | 1,517 | ||||
| Total Assets | $ | 9,422 | $ | 9,310 |
accompanying notes are an integral part of the financial statements.
TECHNOLOGIES OXY B.H.N. LTD.
INTERIM CONDENSED BALANCE SHEETS
dollars in thousands)
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Trade accounts payable | 179 | 198 | ||||||
| Other accounts payable | 1,138 | 1,026 | ||||||
| Lease liabilities | 298 | 290 | ||||||
| Financial liabilities at fair market value | 2,009 | 1,470 | ||||||
| Total current liabilities | $ | 3,624 | $ | 2,984 | ||||
| Non-Current Liabilities: | ||||||||
| Lease liabilities | 455 | 588 | ||||||
| Total non- current liabilities | $ | 455 | $ | 588 | ||||
| Shareholders' Equity: | ||||||||
| Ordinary shares, no par value: Authorized 100,000,000 as of June 30, 2024 and December 31, 2023; issued and outstanding 18,438,917 shares as of June 30, 2024 and 15,652,176 shares as of December 31, 2023 | - | - | ||||||
| Share capital and additional paid-in capital | 67,104 | 61,259 | ||||||
| Accumulated losses | ( 61,761 | ) | ( 55,521 | ) | ||||
| Total Shareholders' Equity | $ | 5,343 | $ | 5,738 | ||||
| Total Liabilities and Shareholders' Equity | $ | 9,422 | $ | 9,310 |
accompanying notes are an integral part of the financial statements.
TECHNOLOGIES OXY B.H.N. LTD.
INTERIM CONDENSED STATEMENTS OF COMPREHENSIVE LOSS
dollars in thousands)
| Six months ended June 30, | Six months ended June 30, | |||||||
| 2024 | 2023 | |||||||
| Research and development expenses | 3,270 | 4,022 | ||||||
| Sales and marketing expenses | 349 | 398 | ||||||
| General and administrative expenses | 2,182 | 2,089 | ||||||
| Other expenses | 5 | 4 | ||||||
| Operating loss | 5,806 | 6,513 | ||||||
| Interest income from deposits | ( 83 | ) | ( 191 | ) | ||||
| Finance expenses (income), net | 517 | ( 138 | ) | |||||
| Loss before tax | 6,240 | 6,184 | ||||||
| Taxes on income | - | - | ||||||
| Total comprehensive and net loss | 6,240 | 6,184 | ||||||
| Net loss per ordinary share, basic and diluted | ( 0.38 | ) | ( 0.53 | ) | ||||
| Weighted average number of ordinary shares | 16,628,582 | 11,692,017 |
accompanying notes are an integral part of the financial statements.
TECHNOLOGIES OXY B.H.N. LTD.
INTERIM CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
dollars in thousands)
the six months ended June 30, 2024:
| Ordinary Share Capital | ||||||||||||||||
| Number of shares | Share capital and Additional Paid in Capital | Accumulated deficit | Total | |||||||||||||
| Balance at January 1, 2024: | 15,652,176 | 61,259 | ( 55,521 | ) | 5,738 | |||||||||||
| Changes during the six months ended June 30, 2024: | ||||||||||||||||
| Issuance of ordinary shares and pre-funded warrants, net | 2,280,826 | 4,753 | - | 4,753 | ||||||||||||
| Exercise of options | 19,048 | 2 | - | 2 | ||||||||||||
| Restricted share unit ("RSU") vesting | 441,867 | - | - | - | ||||||||||||
| Issuance of ordinary shares- Advisor fees | 45,000 | 62 | - | 62 | ||||||||||||
| Share-based compensation | - | 1,028 | - | 1,028 | ||||||||||||
| Comprehensive and net loss | - | - | ( 6,240 | ) | ( 6,240 | ) | ||||||||||
| Balance at June 30, 2024 | 18,438,917 | 67,104 | ( 61,761 | ) | 5,343 |
the six months ended June 30, 2023:
| Ordinary Share Capital | ||||||||||||||||
| Number of shares | Share capital and Additional Paid in Capital | Accumulated deficit | Total | |||||||||||||
| Balance at January 1, 2023: | 11,338,940 | 57,866 | ( 44,235 | ) | 13,631 | |||||||||||
| Changes during the six months ended June 30, 2023: | ||||||||||||||||
| Share-based compensation | - | 1,017 | - | 1,017 | ||||||||||||
| Restricted share unit vesting | 654,359 | - | - | - | ||||||||||||
| Comprehensive and net loss | - | - | ( 6,184 | ) | ( 6,184 | ) | ||||||||||
| Balance at June 30, 2023 | 11,993,299 | 58,883 | ( 50,419 | ) | 8,464 |
accompanying notes are an integral part of the financial statements.
TECHNOLOGIES OXY B.H.N. LTD.
INTERIM CONDENSED STATEMENTS OF CASH FLOWS
dollars in thousands)
| Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | ( 6,240 | ) | ( 6,184 | ) | ||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation | 67 | 25 | ||||||
| Increase (decrease) in other current assets | ( 19 | ) | 237 | |||||
| Increase (decrease) in trade accounts payable | ( 19 | ) | ( 3 | ) | ||||
| Increase (decrease) in other accounts payable | 112 | 156 | ||||||
| Increase (decrease) in inventory | ( 376 | ) | - | |||||
| Share based compensation | 1,028 | 1,017 | ||||||
| Issuance of ordinary shares - advisor fees | 62 | - | ||||||
| Change in fair market value of financial liabilities at fair market value | 539 | 3 | ||||||
| Decrease (increase) in right of use assets | ( 5 | ) | ( 40 | ) | ||||
| Prepayments of lease liabilities | ( 6 | ) | ( 7 | ) | ||||
| Net cash used in operating activities | ( 4,857 | ) | ( 4,796 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property, plant and equipment | ( 2 | ) | ( 199 | ) | ||||
| Change in deposits, net | ( 1,388 | ) | 1,538 | |||||
| Change in restricted deposits | 1 | ( 2 | ) | |||||
| Net cash provided by (used in) investing activities | ( 1,389 | ) | 1,337 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Issuance of ordinary shares and pre-funded warrants, net | 4,753 | - | ||||||
| Exercise of option | 2 | - | ||||||
| Net cash provided by financing activities | 4,755 | - | ||||||
| Net decrease in cash and cash equivalents and restricted cash | ( 1,491 | ) | ( 3,459 | ) | ||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 5,130 | 6,839 | ||||||
| Cash, cash equivalents and restricted cash at the end of the period | 3,639 | 3,380 |
A - NON-CASH TRANSACTIONS:
| Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||
| Share based compensation- placement agent warrants against additional paid in capital (Note 5) | 202 | - |
B - AMOUNT PAID DURING THE PERIOD:
| Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||
| Interest paid | 38 | 50 |
accompanying notes are an integral part of the financial statements.
TECHNOLOGIES OXY B.H.N. LTD.
TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
dollars in thousands)
| The INSPIRA ART (Gen 2) (Augmented Respiratory Technology), which is a respiratory support technology targeted toward utilizing direct blood oxygenation to boost patient saturation levels within minutes while the patient is awake and spontaneously breathing. The aim is to reduce the need for invasive mechanical ventilation, with the potential to reduce risks, complications and high costs. | |
| The HYLA blood sensor, which is a non-invasive optical blood sensor designed to perform real-time and continuous blood measurements, potentially minimizing the need to take actual blood samples from patients. | |
| The INSPIRA ART100 Device, an advanced form of life support system better known by the medical industry as a cardiopulmonary bypass system is being designed for use in surgical procedures requiring cardiopulmonary bypass for six hours or less. |
TECHNOLOGIES OXY B.H.N. LTD.
TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
dollars in thousands)
1 - GENERAL (Cont.):
TECHNOLOGIES OXY B.H.N. LTD.
TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
dollars in thousands)
2 - SIGNIFICANT ACCOUNTING POLICIES:
accompanying unaudited condensed financial statements have been prepared on the same basis as the annual financial statements. In the
opinion of management, the financial statements reflect all normal and recurring adjustments necessary to fairly state the financial
position and results of operations of the Company. The information included in this report should be read in conjunction with the financial
statements and accompanying notes included in the Company's Annual Report on Form 20-F for the year ended December 31, 2023, as
filed with the Securities and Exchange Commission ("SEC") on March 25, 2024. The year-end balance sheet data was derived
from the audited financial statements as of December 31, 2023, but not all disclosures required by generally accepted accounting principles
in the United States ("U.S. GAAP") are included in this interim report.
of Estimates in the Preparation of Financial Statements
preparation of the Company's financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions
that may affect the reported amounts of assets, liabilities, equity, expenses and related disclosure of contingent assets and liabilities.
On an ongoing basis, the Company evaluates its estimates, judgments and methodologies. The Company bases its estimates on historical
experience and on various other assumptions that it believes are reasonable, the results of which form the basis for making judgments
about the carrying values of assets, liabilities and equity (including share-based compensation) and the amount of expenses. Actual results
could differ from those estimates.
of accounting standards to be applied in future periods
November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting
(Topic 280): Improvements to Reportable Segment Disclosures. This ASU expands public entities' segment disclosures by requiring
disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment
profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment's
profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable
segment. The ASU's amendments are effective for all public entities for fiscal years beginning after December 15, 2023, and interim
periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact
of this pronouncement on our Financial Statements.
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Under this ASU, public
entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling
items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount
computed by multiplying pretax income or loss by the applicable statutory income tax rate). This ASU's amendments are effective
for all entities that are subject to Topic 740, Income Taxes, for annual periods beginning after December 15, 2024, with early adoption
permitted. We are currently evaluating the impact of this pronouncement on our disclosures.
TECHNOLOGIES OXY B.H.N. LTD.
TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
dollars in thousands)
3 - FINACIAL LIABILITIES AT FAIR MARKET VALUE:
| June 30, 2024 | December 31, 2023 | |||||||
| Financial liability (1) | 11 | 11 | ||||||
| Non-tradable warrants (2) | 1,998 | 1,459 | ||||||
| Total | 2,009 | 1,470 |
liability to pay 7% fees on the fundings that will be received from exercises of tradable warrants. The financial liability is to be
measured at fair market value through profit or loss. The financial liability fair value as of December 31, 2023, and as of June 30,
2024 is $11 in the both periods.
December 26, 2023, the Company entered into the December Purchase Agreement (Note 1 and Note 5), pursuant to which it issued unregistered
warrants, to purchase up to an aggregate of 3,031,250 Ordinary Shares at an exercise of $1.28 per share. The Private Warrants were exercisable
immediately upon issuance and will expire three and a half years following their issuance. The Private Warrants include cashless exercise
mechanism, according to the terms specified in the agreement. The Private Warrants may create obligation to transfer cash to the investors
at fundamental transactions according to fair value of the Black-Scholes model that includes various inputs. Therefore, the Company assesses
the Private Warrants as financial liability instruments that are measured at fair value and recognized financial expenses or income through
Private Warrants fair value as of the issuance date and December 31, 2023, were $1,750 and $1,459 respectively. The warrants fair value
as of the June 30, 2024, was $1,998.
key inputs that were used in the Private Warrants fair value were:
| As of June 30, 2024 | As of December 31, 2023 | |||||||
| Risk-free interest rate | 4.52 | % | 4 | % | ||||
| Expected volatility | 62.23 | % | 66.63 | % | ||||
| Expected dividend yield of | 0 | % | 0 | % | ||||
| Expected term of warrants | 3 years | 3.5 years |
following transactions arose with related parties:
and balances with related parties:
| June 30, 2024 | June 30, 2023 | |||||||
| Salary and related expenses - officers and directors | 881 | 907 | ||||||
| Share based payment - officers and directors | 652 | 712 |
TECHNOLOGIES OXY B.H.N. LTD.