.56 NIS/USD for the six-month period ended June 30, 2018)
Six months ended
June 30,
Three months ended
June 30,
Year ended
December 31,
2018
2017
2018
2017
2017
Unaudited
Audited
USD in thousands
Cash flows from operating activities:
Net loss
(3,262)
(2,499)
(1,214)
(1,863)
(6,244)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization
6
2
3
1
5
Gain from sale of equipment
-
-
-
-
1
Share-based payment expense
376
135
138
71
862
Finance expenses (incomes), net
(512)
446
(422)
453
525
(130)
583
(281)
525
1,393
Working capital adjustments:
Increase in accounts receivable
(189)
(110)
(50)
(102)
(143)
Decrease (increase) in trade payables
113
(101)
(101)
(406)
349
Decrease (increase) in other accounts payable
3
33
(189)
(54)
66
(73)
(178)
(340)
(562)
272
Net cash used in operating activities
(3,465)
(2,094)
(1,835)
(1,900)
(4,579)
Cash flows from investing activities:
Increase in restricted cash
-
(2)
-
(2)
(11)
Proceed from sale of equipment
-
-
-
-
2
Purchase of equipment
(12)
(7)
(3)
(7)
(44)
Grant of convertible loan
(500)
-
(500)
-
-
Net cash used in investing activities
(512)
(9)
(503)
(9)
(53)
Cash flows from financing activities:
Prepaid public offering costs
(36)
-
1
-
(18)
Proceeds from issuance of share capital (net of issuance expenses)
-
13,167
-
1,943
13,193
Net cash provided by (used in) financing activities
(36)
13,167
1
1,943
13,175
Exchange rate differences on cash and cash equivalents in foreign currency
308
(446)
218
(453)
(527)
Translation differences on cash and cash equivalents
(387)
490
(287)
149
503
Increase (decrease) in cash
(4,092)
11,108
(2,406)
(270)
8,519
Cash at the beginning of the period
9,195
676
7,509
12,054
676
Cash at the end of the period
5,103
11,784
5,103
11,784
9,195
R&D AND G&A DETAIL |
||||||||||
(Based on the average exchange rate of 3.56 NIS/USD for the six-month period ended June 30, 2018) |
||||||||||
Six months ended |
Three months ended |
Year ended |
||||||||
2018 |
2017 |
2018 |
2017 |
2017 |
||||||
Unaudited |
Audited |
|||||||||
USD in thousands |
||||||||||
Research and Development Expenses: |
||||||||||
Clinical studies |
372 |
256 |
118 |
163 |
511 |
|||||
R&D and preclinical studies |
423 |
158 |
268 |
119 |
362 |
|||||
Wages and related expenses |
335 |
140 |
127 |
57 |
321 |
|||||
Share-based payment |
80 |
24 |
33 |
11 |
103 |
|||||
Regulatory and other expenses |
384 |
117 |
104 |
105 |
276 |
|||||
Chemistry and formulation studies |
51 |
- |
- |
- |
330 |
|||||
1,645 |
695 |
650 |
455 |
1,943 |
||||||
General and Administrative Expenses: |
||||||||||
Investor relations and business expenses |
164 |
388 |
55 |
340 |
871 |
|||||
Professional and director fees |
713 |
394 |
259 |
302 |
1,007 |
|||||
Regulatory expenses |
35 |
53 |
20 |
29 |
80 |
|||||
Business development |
484 |
- |
393 |
- |
74 |
|||||
Wages and related expenses |
347 |
343 |
120 |
185 |
808 |
|||||
Office, maintenance, rent and other expenses |
100 |
87 |
48 |
55 |
211 |
|||||
Share-based payment |
296 |
111 |
105 |
60 |
759 |
|||||
2,139 |
1,376 |
1,000 |
971 |
3,810 |
Subsequent events:
On July 31,
2018, the Company entered into an Agreement for Convertible
Equity (the "Convertible Equity Agreement") with Therapix
Healthcare Resources, Inc. ("THR"), which is a company incorporated
in Delaware and an unaffiliated third party. Under the
Convertible Equity Agreement, the Company loaned an aggregate of
$1,300,000 (the "Loan") to THR. The maturity date of
the Loan, which accrues interest at a rate of nine percent (9%) per
annum, will be upon demand of the Company at any time after
August 1, 2018, the closing date (the "Maturity
Date"). At the election of the Company, the entire Loan shall be
converted into that number of shares of the most senior class of
shares of THR existing at the time of such conversion, at a price
per share equal to the fair market value of such shares as shall be
determined by THR's Board of Directors, it being acknowledged that,
following the exercise of such conversion right, the Company shall
hold 20.96% of THR. In addition, the Company shall have the right
to appoint 50% of the members of the THR Board of Directors. The
proceeds of the Loan were used by THR to acquire eight pain
clinics, seven of which are located in Tennessee and
one in Arkansas, as well as a fully equipped
laboratory in Tennessee from Anesthesia Services
Associates PLLC. (d/b/a Comprehensive Pain Specialist) on
August 1, 2018.
About Therapix Biosciences
Ltd.:
Therapix Biosciences Ltd. is a specialty
clinical-stage pharmaceutical company led by an experienced team of
Senior Executives and Scientists. Our focus is creating and
enhancing a portfolio of technologies and assets based on
cannabinoid pharmaceuticals. With this focus, the company is
currently engaged in the following drug development programs based
on repurposing an FDA-approved cannabinoid (Dronabinol): THX-110
for the treatment of Tourette syndrome (TS), for the treatment of
Obstructive Sleep Apnea (OSA), and the treatment of pain; THX-130
for the treatment of Mild Cognitive Impairment (MCI) and Traumatic
Brain Injury (TBI); THX-150 for the treatment of infectious
diseases; and THX-160 for the treatment of pain. Please visit our
website for more information at www.therapixbio.com.
About TXH-110 (Previously referred to as
THX-TS01 and THX-OSA01):
THX-110 is a combination drug
candidate for the treatment of Tourette syndrome, Obstructive Sleep
Apnea and pain. It is composed of two components: (1) dronabinol
(an FDA approved analog of ∆9-tetrahydracannabinol, or "THC"), and
(2) palmitoylethanolamide ("PEA"), which is an endogenous fatty
acid amide that belongs to the class of nuclear factor agonists,
which are molecules that regulate the expression of genes. The
combination of THC and PEA may induce a reaction known as the
"Entourage Effect". The basic tenet of the entourage effect is that
cannabinoids work together, or possess synergy, and affect the body
in a mechanism similar to the body's own endocannabinoid system,
which is a group of molecules and receptors in the brain that
mediates the psychoactive effects of cannabis. This entourage
effect may account for the pharmacological actions of PEA. Based on
an activity enhancement of other physiological compounds, PEA may
indirectly stimulate the cannabinoid receptors by potentiating
their affinity for a receptor or by inhibiting their metabolic
degradation, and by doing so, may increase the uptake of
cannabinoid compounds, such as THC. Thus, it is speculated that the
presence of the PEA molecule could increase the efficacy of THC,
while reducing the required dosage and decreasing associated
deleterious adverse events.
About THX-130:
THX-130 is a
proprietary, innovative, formulation of ultra-low dose dronabinol,
which is intended to provide a treatment for Mild Cognitive
Impairment (MCI). Recent pre-clinical animal studies have found
that an ultra-low dose of THC could potentially protect the brain
from long-term cognitive impairment, which may be caused by aging,
lack of oxygen supply, seizures or use of drugs. Certain
pre-clinical studies also suggest that ultra-low doses of THC cause
animals to improve performance in behavioral tests that measure
learning and memory.
About THX-150:
THX-150 is a drug
candidate intended for the treatment of infectious diseases. It
consists of dronabinol or dronabinol with PEA and a selected
antibacterial agent, which possesses antimicrobial synergy
potential.
About THX-160:
THX-160 is a drug
candidate intended for the treatment of pain. It consists of a CB2
receptor agonist with or without the opioid.
Forward-Looking Statements:
This
press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and other Federal securities laws.
Because such statements deal with future events and are based on
Therapix's current expectations, they are subject to various risks
and uncertainties and actual results, performance or achievements
of Therapix could differ materially from those described in or
implied by the statements in this press release. For example,
forward-looking statements include statements regarding the
Company's plans with respect to its clinical trials and its intent
to report material developments and information regarding such
trials. In addition, historic results of scientific research and
clinical and preclinical trials do not guarantee that the
conclusions of future research or trials will suggest identical or
even similar conclusions. The forward-looking statements contained
or implied in this press release are subject to other risks and
uncertainties, including those discussed under the heading "Risk
Factors" in Therapix Biosciences Ltd.'s Annual Report on Form 20-F
filed with the Securities and Exchange Commission (SEC) on
April 30, 2018 and in subsequent filings with the SEC.
Except as otherwise required by law, Therapix disclaims any
intention or obligation to update or revise any forward-looking
statements, which speak only as of the date they were made, whether
as a result of new information, future events or circumstances or
otherwise.
For further information:
Oz Adler,
CFO
Oz@therapixbio.com
Investor
Contact:
Investor Relations
IR@therapixbio.com