NOTES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S.
Dollars in thousands (except share and per share data)
(UNAUDITED)
NOTE
1 - GENERAL:
|
a. |
Incorporation
and Operations |
Oramed
Pharmaceuticals Inc. (collectively with its subsidiaries, the “Company”, unless the context indicates otherwise), a Delaware
corporation, was incorporated on April 12, 2002.
On
February 17, 2006, the Company entered into an agreement with Hadasit Medical Services and Development Ltd. to acquire the provisional
patent related to an orally ingestible insulin capsule to be used for the treatment of individuals with diabetes.
On
May 14, 2007, the Company incorporated a wholly-owned subsidiary in Israel, Oramed Ltd. (the “Subsidiary”), which is engaged
in research and development.
On
July 30, 2019, the Subsidiary incorporated a wholly-owned subsidiary in Hong Kong, Oramed HK Limited (the “Hong Kong Subsidiary”).
As of March 31, 2023, the Hong Kong Subsidiary has no operations.
On
March 18, 2021, the Company entered into a license agreement (the “Oravax License Agreement”) with Oravax Medical Inc. (“Oravax”)
and into a stockholders agreement (the “Stockholders Agreement”) with Akers Biosciences Inc. (“Akers”), Premas
Biotech Pvt. Ltd. (“Premas”), Cutter Mill Capital LLC (“Cutter Mill”) and Run Ridge LLC (“Run Ridge”).
According to the Stockholders Agreement, Oravax issued 1,890,000 shares of its capital stock to the Company, representing 63% of the
issued and outstanding share capital of Oravax, on a fully diluted basis, as of the date of issuance. Consequently, Oramed consolidates
Oravax in its consolidated financial statements since that time.
On
November 23, 2021, Oravax incorporated a wholly-owned subsidiary in Israel, Oravax Medical Ltd., which is engaged in research and development.
Effective January 1, 2022, Oravax transferred its rights and obligations under the Oravax License Agreement to Oravax Medical Ltd.
On January 11, 2023, the Company announced that the ORA-D-013-1 Phase
3 trial did not meet its primary and secondary endpoints. As a result, the Company terminated this trial and a parallel Phase
3, ORA-D-013-2 clinical trial. The Company has also initiated a comprehensive analysis of the data to understand
if there is a path forward for its oral insulin candidate. Concurrently, the Company is examining its existing pipeline and has commenced
an evaluation process of potential strategic opportunities, with the goal of enhancing value for the Company’s stockholders. As
these results are considered a triggering event, the Company evaluated all of its long lived assets which include fixed assets and operating
lease right-of-use assets in the first quarter of 2023 and concluded that no impairment is required.
|
b. |
Development and Liquidity Risks |
The
Company is engaged in research and development in the biotechnology field for innovative pharmaceutical solutions, including an orally
ingestible insulin capsule to be used for the treatment of individuals with diabetes, and the use of orally ingestible capsules for delivery
of other polypeptides, and has not generated significant revenues from its operations. Based on the Company’s current cash resources
and commitments, the Company believes it will be able to maintain its current planned development activities and the corresponding level
of expenditures for at least the next 12 months, although no assurance can be given that the Company will not need additional funds prior
to such time. If there are unexpected increases in its operating expenses, the Company may need to seek additional financing during the
next 12 months. Successful completion of the Company’s development programs and its transition to normal operations is dependent
upon obtaining necessary regulatory approvals from the U.S. Food and Drug Administration prior to selling its products within the United
States, obtaining foreign regulatory approvals to sell its products internationally, or entering into licensing agreements with third
parties. There can be no assurance that the Company will receive regulatory approval of any of its product candidates, and a substantial
amount of time may pass before the Company achieves a level of revenues adequate to support its operations, if at all. The Company also
expects to incur substantial expenditures in connection with the regulatory approval process for each of its product candidates during
their respective developmental periods. Obtaining marketing approval will be directly dependent on the Company’s ability to implement
the necessary regulatory steps required to obtain marketing approval in the United States and in other countries. The Company may also
need additional funds to realize the decisions made as part of its strategic review process. The Company cannot predict the outcome of
these activities.
ORAMED
PHARMACEUTICALS INC.
NOTES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S.
Dollars in thousands (except share and per share data)
(UNAUDITED)
NOTE
2 - SIGNIFICANT ACCOUNTING POLICIES:
| a. | Condensed consolidated financial statements preparation |
The
condensed consolidated financial statements included herein have been prepared in accordance with United States generally accepted accounting
principles (“U.S. GAAP”) and, on the same basis as the audited consolidated financial statements included in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “2022 Form 10-K”). These condensed consolidated
financial statements reflect all adjustments that are of a normal recurring nature and that are considered necessary for a fair statement
of the results of the periods presented. Certain information and disclosures normally included in annual consolidated financial statements
have been omitted in this interim period report pursuant to the rules and regulations of the Securities and Exchange Commission. Because
the condensed consolidated interim financial statements do not include all of the information and disclosures required by U.S. GAAP for
annual financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included
in the 2022 Form 10-K. The results for interim periods are not necessarily indicative of a full fiscal year’s results.
Basic
and diluted net loss per share of common stock are computed by dividing the net loss attributable to stockholders for the period by the
weighted average number of shares of common stock outstanding for each period, including vested restricted stock units (“RSUs”).
Outstanding stock options, warrants and unvested RSUs have been excluded from the calculation of the diluted loss per share because all
such securities are anti-dilutive for all periods presented. The weighted average number of common stock options, warrants and RSUs excluded
from the calculation of diluted net loss was 3,357,911 and 3,463,525 for the three month periods ended March 31, 2023 and March 31, 2022,
respectively.
HTIT
On
November 30, 2015, the Company entered into a Technology License Agreement (the “TLA”), with Hefei Tianhui Incubator of Technologies
Co. Ltd. (“HTIT”) and on December 21, 2015, the parties entered into an Amended and Restated Technology License Agreement
that was further amended by the parties on June 3, 2016 and July 24, 2016 (the “HTIT License Agreement”). The HTIT License
Agreement and a Stock Purchase Agreement, dated November 30, 2015, between the Company and HTIT (the “SPA”) were considered
a single arrangement with multiple deliverables. The Company allocated the total consideration of $49,500 between the HTIT License Agreement
and the SPA according to their fair value, as follows: $10,617 was allocated to the issuance of common stock (less issuance expenses
of $23), based on the quoted price of the Company’s shares on the closing date of the SPA on December 28, 2015, and $38,883 was
allocated to the HTIT License Agreement.
Under
Accounting Standard Codification, (“ASC”) 606, the Company identified a single performance obligation in the agreement and
determined that the license and services are not distinct as the license and services are highly dependent on each other. In other words,
HTIT cannot benefit from the license without the related services, and vice versa.
Since
the customer benefits from the services as the entity performs, revenue is recognized over time through the expected product submission
date in June 2023, using the input method. The Company used the input method to measure the process for the purpose of recognizing revenue,
which approximates the straight line attribution. The Company used significant judgment when it determined the product submission date.
Under
ASC 606, the consideration that the Company would be entitled to upon the achievement of contractual milestones, which are contingent
upon the occurrence of future events, are a form of variable consideration. When assessing the portion, if any, of such milestones-related
consideration to be included in the transaction price, the Company first assesses the most likely outcome for each milestone and excludes
the consideration related to milestones of which the occurrence is not considered the most likely outcome.
ORAMED
PHARMACEUTICALS INC.
NOTES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S.
Dollars in thousands (except share and per share data)
(UNAUDITED)
NOTE
2 - SIGNIFICANT ACCOUNTING POLICIES (continued):
The
Company then evaluates if any of the variable consideration determined in the first step is constrained by including in the transaction
price variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized
will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company used significant
judgment when it determined the first step of variable consideration.
The
potential future royalty consideration is also considered a form of variable consideration under ASC 606 as it is based on a percentage
of potential future sales of the Company’s products. However, the Company applies the sales-based royalty exception and accordingly
will recognize the sales-based royalty amounts when the related sale has occurred. To date, the Company has not recognized any royalty-related
revenue.
As
of March 31, 2023, an aggregate amount of $22,382 was allocated to the HTIT License Agreement, all of which were received through the
balance sheet date. Through March 31, 2023, the Company recognized revenue associated with this agreement in the aggregate amount of
$19,708, of which $666 was recognized in the quarter ended March 31, 2023, and deferred the remaining amount of $2,674, which is presented
as a contract liability on the condensed consolidated balance sheet.
Medicox
On
November 13, 2022, the Company entered into a distribution license agreement (“Medicox License Agreement”) with Medicox Co.,
Ltd. (“Medicox”). The Medicox License Agreement grants Medicox an exclusive license to apply for regulatory approval and
distribute ORMD-0801 in the Republic of Korea. For further details, see note 3c.
Under
ASC 606, the Company identified Medicox as a customer and the Medicox License Agreement as a contract with a customer.
The
Company identified a performance obligation in the Medicox License Agreement to stand-ready and provide Medicox with support in its commercialization
efforts in the Republic of Korea. This performance obligation includes a non-distinct distribution license for ORMD-0801, which the Company
views a predominant item in the combined performance obligation. The Company concluded that the license is not distinct, as no party
other than the Company is capable of providing related services to Medicox, and both the license and related services are necessary for
the customer to obtain a regulatory approval in the Republic of Korea. In addition, the agreement covers the terms of future manufacturing
services, that are contingent on the completion and success of the commercialization efforts.
The
Medicox License Agreement contains a fixed consideration of $2,000, which was received by the Company in fiscal year 2022 and is presented
under long-term deferred revenues as of March 31, 2023. It also contains variable consideration of contractual milestone payments and
sales-based royalties.
The
Company’s obligation to stand-ready and support Medicox will be recognized on a straight-line basis over the period the Company
expects to provide support to Medicox. As of March 31, 2023, this support has not commenced, and no revenue was recognized from the Medicox
License Agreement.
If
Medicox proceeds with the regulatory approval process in the Republic of Korea, the Company expects most of the revenue to be recognized
in 2024, going forward. The Company notes that its Phase 3 trial did not meet its primary and secondary endpoints. If Medicox chooses
to terminate the agreement as a result of the outcome of the applicable Phase 3 trials, the Company expects to accelerate revenue recognition
and recognize it at such time.
ORAMED
PHARMACEUTICALS INC.
NOTES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S.
Dollars in thousands (except share and per share data)
(UNAUDITED)
NOTE
2 - SIGNIFICANT ACCOUNTING POLICIES (continued):
| d. | Recently adopted accounting pronouncements |
Financial
instruments – credit losses
In
June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13 “Financial Instruments—Credit
Losses—Measurement of Credit Losses on Financial Instruments.” This guidance replaces the current incurred loss impairment
methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable
information to inform credit loss estimates. The guidance became effective for the fiscal year beginning after December 15, 2022, including
interim periods within that year. The Company adopted the provisions of this update as of January 1, 2023, with no material impact on
its consolidated financial statements.
The
Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a
fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which
are described as follows:
|
Level 1: |
Quoted prices (unadjusted) in active
markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority
to Level 1 inputs. |
| Level 2: | Observable prices that are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly. |
|
Level 3: |
Unobservable inputs are used when
little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
As
of March 31, 2023, the assets measured at fair value are comprised of equity securities (Level 1). The fair value of held to maturity
bonds as presented in note 4 was based on a Level 2 measurement.
As
of March 31, 2023, the carrying amounts of cash equivalents, short-term deposits and accounts payable approximate their fair values due
to the short-term maturities of these instruments.
The
amounts funded in respect of employee rights are stated at cash surrender value which approximates its fair value.
ORAMED
PHARMACEUTICALS INC.
NOTES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S.
Dollars in thousands (except share and per share data)
(UNAUDITED)
NOTE
3 - COMMITMENTS:
| a. | On September 2, 2020 (effective as of January 15, 2020), the Subsidiary entered into a CRO Services Agreement with a third party to retain it as a clinical research organization (“CRO”) for the Subsidiary’s phase 3 clinical trial for its oral insulin. The CRO Services Agreement was amended effective May 26, 2022 and as consideration for its services, the Subsidiary will pay the CRO a total amended amount up to $22,684 during the term of the engagement and based on achievement of certain milestones, of which $16,600 was recognized in research and development expenses through March 31, 2023.
On January 11, 2023, the Company announced that the ORA-D-013-1 Phase
3 trial did not meet its primary and secondary endpoints. As a result, the Company terminated this trial.
|
| b. | On September 16, 2020 (effective as of January 15, 2020), the Subsidiary entered into a CRO Services Agreement with a third party to retain it as a CRO for the Subsidiary’s phase 3 clinical trial for its oral insulin. The CRO Services Agreement was amended effective May 26, 2022 and as consideration for its services, the Subsidiary will pay the CRO a total amended amount up to $15,796 during the term of the engagement and based on achievement of certain milestones, of which $7,972 was recognized in research and development expenses through March 31, 2023.
On January 11, 2023, the Company announced that the ORA-D-013-1 Phase
3 trial did not meet its primary and secondary endpoints. As a result, the Company terminated this trial and a parallel Phase 3, ORA-D-013-2
clinical trial.
|
| c. | On November 13, 2022, the Company entered the Medicox License Agreement with Medicox. The Medicox License Agreement grants Medicox an exclusive license to apply for regulatory approval and distribute ORMD-0801 in the Republic of Korea. The Medicox License Agreement is for ten years, but the parties have the right to terminate it upon 180 days’ notice. Medicox will comply with agreed distribution targets and will purchase ORMD-0801 at an agreed upon transfer price per capsule. In addition, Medicox will pay the Company up to $15,000 in developmental milestones, $2,000 of which have already been received by the Company, and up to 15% royalties on gross sales. Medicox will also be responsible for obtaining a regulatory approval in the Republic of Korea. The Company is currently evaluating with Medicox a path forward to continue its collaboration, following the results of the ORA-D-013-1 Phase 3 trial. For the Company’s revenue recognition policy, see note 2c. |
|
d. |
Grants from the Israel Innovation Authority (“IIA”) |
Under
the terms of the Company’s funding from the IIA, royalties of 3% are payable on sales of products developed from a project so funded,
up to a maximum amount equaling 100%-150% of the grants received (dollar linked) with the addition of interest at an annual rate based
on LIBOR.
At
the time the grants were received, successful development of the related projects was not assured. The total amount received through
March 31, 2023 was $2,208 ($2,542 including interest).
As
of March 31, 2023, the liability to the IIA was $96.
The
royalty expenses which are related to the funded project were recognized in cost of revenues in the relevant periods.
ORAMED
PHARMACEUTICALS INC.
NOTES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S.
Dollars in thousands (except share and per share data)
(UNAUDITED)
NOTE
4 - MARKETABLE SECURITIES:
The
Company’s marketable securities include investments in equity securities of DNA GROUP (T.R.) Ltd. (formerly D.N.A Biomedical Solutions
Ltd.) (“DNA”), Entera Bio Ltd. (“Entera”) and in held to maturity securities.
| |
March 31,
2023 | | |
December 31, 2022 | |
Short-term: | |
| | |
| |
DNA (see b below) | |
$ | 366 | | |
$ | 352 | |
Entera (see c below) | |
| 136 | | |
| 85 | |
Held to maturity securities (see d below) | |
| 1,765 | | |
| 3,306 | |
| |
$ | 2,267 | | |
$ | 3,743 | |
The
DNA ordinary shares are traded on the Tel Aviv Stock Exchange. The fair value of those securities is measured at the quoted prices of
the securities on the measurement date.
During
the three month period ended March 31, 2023, the Company did not sell any of DNA’s ordinary shares. As of March 31, 2023, the Company
owns approximately 1.4% of DNA’s outstanding ordinary shares.
The
cost of the securities as of both March 31, 2023 and December 31, 2022 was $595.
ORAMED
PHARMACEUTICALS INC.
NOTES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S.
Dollars in thousands (except share and per share data)
(UNAUDITED)
NOTE
4 - MARKETABLE SECURITIES (continued):
Entera
ordinary shares have been traded on The Nasdaq Capital Market since June 28, 2018. The Company measures the investment at fair value
from such date, since it has a readily determinable fair value (prior to such date the investment was accounted for as a cost method
investment (amounting to $1)).
|
d. |
Held to maturity securities |
The
amortized cost and estimated fair value of held to maturity securities as of March 31, 2023, were as follows:
| |
March 31, 2023 | |
| |
Amortized cost | | |
Gross unrealized gains (losses) | | |
Estimated fair value | | |
Average yield to maturity rate | |
Short-term: | |
| | |
| | |
| | |
| |
Commercial bonds | |
$ | 1,738 | | |
$ | (40 | ) | |
$ | 1,698 | | |
| 0.84 | % |
Accrued interest | |
| 27 | | |
| - | | |
| 27 | | |
| | |
| |
$ | 1,765 | | |
$ | (40 | ) | |
$ | 1,725 | | |
| | |
The
amortized cost and estimated fair value of held to maturity securities as of December 31, 2022, were as follows:
| |
December 31, 2022 | |
| |
Amortized cost | | |
Gross unrealized gains (losses) | | |
Estimated fair value | | |
Average yield to maturity rate | |
Short-term: | |
| | |
| | |
| | |
| |
Commercial bonds | |
$ | 3,258 | | |
$ | (82 | ) | |
$ | 3,176 | | |
| 1.07 | % |
Accrued interest | |
| 48 | | |
| - | | |
| 48 | | |
| | |
| |
$ | 3,306 | | |
$ | (82 | ) | |
$ | 3,224 | | |
| | |
Held
to maturity securities which will mature during the 12 months from the balance sheet date are included in short-term marketable securities.
ORAMED
PHARMACEUTICALS INC.
NOTES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S.
Dollars in thousands (except share and per share data)
(UNAUDITED)
NOTE
5 - STOCKHOLDERS’ EQUITY:
On
September 1, 2021, the Company entered into a controlled equity offering agreement (the “Cantor Equity Distribution Agreement”)
with Cantor Fitzgerald & Co., as agent, pursuant to which the Company may issue and sell shares of its common stock having an aggregate
offering price of up to $100,000, through a sales agent, subject to certain terms and conditions. Any shares sold will be sold pursuant
to the Company’s effective shelf registration statement on Form S-3 including a prospectus dated July 26, 2021 and prospectus supplement
dated September 1, 2021. The Company paid the sales agent a cash commission of 3.0% of the gross proceeds of the sale of any shares sold
through the sales agent under the Cantor Equity Distribution Agreement. As of March 31, 2023 and May 11, 2023, 1,971,447 shares were
issued under the Cantor Equity Distribution Agreement for aggregate net proceeds of $26,253.
NOTE
6 - LEASES:
The
Company has various operating leases for office space and vehicles that expire through 2027. Below is a summary of the Company’s
operating right-of-use assets and operating lease liabilities as of March 31, 2023 and December 31, 2022:
| |
March 31, 2023 | | |
December 31, 2022 | |
Operating right-of-use assets | |
$ | 915 | | |
$ | 987 | |
| |
| | | |
| | |
Operating lease liabilities, current | |
| 242 | | |
| 247 | |
Operating lease liabilities long-term | |
| 564 | | |
| 647 | |
Total operating lease liabilities | |
$ | 806 | | |
$ | 894 | |
Lease
payments for the Company’s right-of-use assets over the remaining lease periods as of March 31, 2023 and December 31, 2022 are
as follows:
| |
March 31, 2023 | | |
December 31, 2022 | |
2023 | |
| 212 | | |
| 291 | |
2024 | |
| 283 | | |
| 291 | |
2025 | |
| 222 | | |
| 228 | |
2026 | |
| 120 | | |
| 124 | |
2027 | |
| 10 | | |
| 10 | |
Total undiscounted lease payments | |
| 847 | | |
| 944 | |
Less: Interest* | |
| (41 | ) | |
| (50 | ) |
Present value of lease liabilities | |
$ | 806 | | |
$ | 894 | |
| * | Future lease payments were discounted by 3%-5.75% interest rate. |
ORAMED
PHARMACEUTICALS INC.
NOTES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S.
Dollars in thousands (except share and per share data)
(UNAUDITED)
NOTE
7 - RELATED PARTY TRANSACTIONS:
On
July 1, 2008, the Subsidiary entered into two consulting agreements with KNRY Ltd. (“KNRY”), an Israeli company owned by
the Chief Scientific Officer, whereby the President and Chief Executive Officer and the Chief Scientific Officer, through KNRY, provide
services to the Company (the “Consulting Agreements”). The Consulting Agreements are both terminable by either party upon
140 days prior written notice. The Consulting Agreements, as amended, provide that KNRY will be reimbursed for reasonable expenses incurred
in connection with the performance of the Consulting Agreements and that the monthly consulting fee paid to the President and Chief Executive
Officer and the Chief Scientific Officer is NIS 146,705 ($41) and NIS 106,400 ($29), respectively.
In
addition to the Consulting Agreements, based on a relocation cost analysis, the Company paid for certain direct costs, related taxes
and expenses incurred in connection with the relocation of the President and Chief Executive Officer to the U.S. During the three months
ended March 31, 2023, there were no such relocation expenses, compared to $143 for the three months ended March 31, 2022.
Following
the relocation of the President and Chief Executive Officer to the State of Israel, the Company entered into two agreements with the
President and Chief Executive Officer, replacing his above-mentioned consulting agreement through KNRY, substantially on the same terms,
in order to allocate his time and services between the Company and the Subsidiary.
Effective
November 1, 2022, the Company entered into a consulting agreement with Shnida Ltd., whereby the President and Chief Executive Officer,
through Shnida Ltd., provides services as President and Chief Executive Officer of the Company. The agreement is terminable by either
party upon 140 days prior written notice. The agreement provides that Shnida Ltd. will be reimbursed for reasonable expenses incurred
in connection with performance of the agreement and that the President and Chief Executive Officer will receive a monthly consulting
fee of NIS 88,023 ($24), plus value added tax. Pursuant to the agreement, Shnida Ltd. and the President and Chief Executive Officer each
agree that during the term of the agreement and for a 12-month period thereafter, none of them will compete with the Company nor solicit
employees of the Company.
In
addition, the Company, through the Subsidiary, has entered into an employment agreement with the President and Chief Executive Officer,
effective as of November 1, 2022, pursuant to which the President and Chief Executive Officer receives gross monthly salary of NIS 46,901
($13) in consideration for his services as President and Chief Executive Officer of the Subsidiary. In addition, the President and Chief
Executive Officer is provided with a cellular phone and a company car pursuant to the terms of his agreement.
NOTE
8 - SUBSEQUENT EVENTS:
| 1. | On April 17, 2023, the Company granted an aggregate of 868,500 RSUs representing a right to receive shares of the Company’s common stock to executive officers and board members of the Company. The RSUs will vest in twelve equal quarterly installments starting May 1, 2023. The total fair value of these RSUs on the date of grant was $1,980, using the quoted closing market share price of $2.28 on the Nasdaq Capital Market on the date of grant. |
| | |
| 2. | On April 17, 2023, the Company granted an aggregate of 245,500 performance based RSUs (“PSUs”) representing a right to receive shares of the Company’s common stock to executive officers of the Company. The PSUs will vest upon the Company’s common stock achieving and maintaining a specified price per share. The total fair value of these PSUs on the date of grant was $550, using the Monte-Carlo model. |
| | |
| 3. | On May 1, 2023, the Company granted an aggregate of 20,000 RSUs representing a right to receive shares of the Company’s common stock to a board member. The RSUs will vest in twelve quarterly installments starting May 1, 2023. The total fair value of these RSUs on the date of grant was $49, using the quoted closing market share price of $2.45 on the Nasdaq Capital Market on the date of grant. |