Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-38762

BiomX Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		82-3364020
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

22 Einstein St., 4th Floor, Ness Ziona, Israel		7414003
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: +972 723942377

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units, each consisting of one share of common stock, $0.0001 par value, and one warrant exercisable for one-half of one share of common stock	PHGE.U	NYSE American
Common stock, $0.0001 par value	PHGE	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the Registrant’s shares of Common Stock as of May 17, 2024 was 69,806,440.

BIOMX INC.

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2024

TABLE OF CONTENTS

		Page
Part I. Financial Information		1
Item 1. Financial Statements		1
Condensed Consolidated Balance Sheets (unaudited)		F-1
Condensed Consolidated Statements of Operations (unaudited)		F-3
Condensed Consolidated Statements of Stockholders’ Equity (unaudited)		F-4
Condensed Consolidated Statements of Cash Flows (unaudited)		F-6
Notes to Condensed Consolidated Financial Statements (unaudited)		F-7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		2
Item 3. Quantitative and Qualitative Disclosures About Market Risk		9
Item 4. Controls and Procedures		9
Part II. Other Information		10
Item 6. Exhibits.		10
Part III. Signatures		11

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This Quarterly Report on Form 10-Q, or the Quarterly Report, includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and other securities laws. The statements contained herein that are not purely historical, are forward-looking statements. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Words or phrases such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “will” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. For example, we are making forward-looking statements when we discuss our business strategy and plans, our clinical and pre-clinical development program, including timing, milestones and the design thereof, including acceptance of regulatory agencies of such design, the potential opportunities for and benefits of the BacteriOphage Lead to Treatment, or BOLT, platform, the potential of our product candidates and the sufficiency of financial resources and financial needs and ability to continue as a going concern. However, you should understand that these statements are not guarantees of performance or results, and there are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from those expressed in the forward-looking statements, including, among others:

●

the ability to generate revenues, and raise sufficient financing to meet working capital requirements;

●

the integration of the operations of Adaptive Phage Therapeutics LLC, a Delaware limited liability company, or APT, into the Company;

●

the receipt of our stockholders’ approval to certain proposals relating to the acquisition of APT by BiomX Inc., pursuant to an agreement and plan of merger, or the Merger Agreement, by and among BiomX Inc., APT, BTX Merger Sub I, Inc., a Delaware corporation, and BTX Merger Sub II, LLC, a Delaware limited liability company, or the Acquisition and related private investment transaction;

●

the unpredictable timing and cost associated with our approach to developing product candidates using phage technology;

●

political and economic instability, including, without limitation, due to natural disasters or other catastrophic events, such as the Russian invasion of Ukraine and world sanctions on Russia, Belarus, and related parties, terrorist attacks, hurricanes, fire, floods, pollution and earthquakes;

●

obtaining U.S. Food and Drug Administration, or FDA, acceptance of any non-U.S. clinical trials of product candidates;

●

our ability to enroll patients in clinical trials and achieve anticipated development milestones when expected;

●

the ability to pursue and effectively develop new product opportunities and acquisitions and to obtain value from such product opportunities and acquisitions;

●

penalties and market withdrawal associated with any unanticipated problems with product candidates and failure to comply with labeling and other restrictions;

	●	general economic conditions, our current low stock price and other factors on our operations, the continuity of our business, including our preclinical and clinical trials, and our ability to raise additional capital;

	●	expenses associated with compliance with ongoing regulatory obligations and successful continuing regulatory review;

●

market acceptance of our product candidates and ability to identify or discover additional product candidates;

●

our ability to obtain high titers for specific phage cocktails necessary for preclinical and clinical testing;

●

the availability of specialty raw materials and global supply chain challenges;

●

the ability of our product candidates to demonstrate requisite, safety and efficacy for drug products, or safety, purity and potency for biologics without causing adverse effects;

●

the success of expected future advanced clinical trials of our product candidates;

●

our ability to obtain required regulatory approvals;

●

delays in developing manufacturing processes for our product candidates;

●

competition from similar technologies, products that are more effective, safer or more affordable than our product candidates or products that obtain marketing approval before our product candidates;

●

the impact of unfavorable pricing regulations, third-party reimbursement practices or healthcare reform initiatives on our ability to sell product candidates or therapies profitably;

●

protection of our intellectual property rights and compliance with the terms and conditions of current and future licenses with third parties;

●

infringement on the intellectual property rights of third parties and claims for remuneration or royalties for assigned service invention rights;

●

our ability to acquire, in-license or use proprietary rights held by third parties necessary to our product candidates or future development candidates;

●

ethical, legal and social concerns about synthetic biology and genetic engineering that may adversely affect market acceptance of our product candidates;

●

reliance on third-party collaborators;

●

political, economic and military instability in the State of Israel, and in particular, the war in Gaza following the October 7 attack, additional potential conflicts with other middle eastern countries and the continuation of the proposed judicial and other legislation reform by the Israeli government;

●

our ability to attract and retain key employees or to enforce the terms of noncompetition agreements with employees;

●

the failure to comply with applicable laws and regulations other than drug manufacturing compliance; and

●

potential security breaches, including cybersecurity incidents.

For a detailed discussion of these and other risks, uncertainties and factors, see Part I, Item 1A “Risk Factors” of our 2023 Annual Report. All forward-looking statements contained in this Quarterly Report speak only as of the date hereof. Except as required by law, we are under no duty to (and expressly disclaim any such obligation to) update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this Quarterly Report. Comparisons of results between current and prior periods are not intended to express any future trends, or indications of future performance, and should be viewed only as historical data.

iii

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

INDEX TO FINANCIAL STATEMENTS

		Page

Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (unaudited)		F-1-F-2

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (unaudited)		F-3

Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Shares and in Stockholders’ Equity (Capital Deficiency) for the Three Months ended March 31, 2024 and 2023 (unaudited)		F-4-F-5

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (unaudited)		F-6

Notes to Condensed Consolidated Financial Statements (unaudited)		F-7-F-22

BIOMX INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(USD in thousands, except share and per share data)

(unaudited)

	As of
	March 31, 2024		December 31, 2023
ASSETS

Current assets

Cash and cash equivalents		43,007		14,907
Restricted cash		1,108		957
Other current assets		2,986		1,768
Total current assets		47,101		17,632

Non-current assets
Operating lease right-of-use assets		11,279		3,495
Property and equipment, net		7,438		3,902
In-process Research and development (“IPR&D”) assets and Goodwill		15,788		-
Total non-current assets		34,505		7,397
		81,606		25,029

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-1

BIOMX INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(USD in thousands, except share and per share data)

(unaudited)

	As of
	March 31, 2024			December 31, 2023

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities
Trade accounts payable		3,686			1,381
Current portion of lease liabilities		985			666
Other accounts payable		6,036			3,344
Current portion of long-term debt		-			5,785
Total current liabilities		10,707			11,176

Non-current liabilities
Contract liability		1,976			1,976
Long-term debt, net of current portion		-			5,402
Operating lease liabilities, net of current portion		9,139			3,239
Other liabilities		153			155
Private Placement Warrants		36,755			-
Total non-current liabilities		48,023			10,772

Commitments and Contingencies (Note 7)

Redeemable Convertible Preferred Shares					-

Preferred Stock, $0.0001 par value; Authorized - 1,000,000 shares as of March 31, 2024 and December 31, 2023. Issued and outstanding- 256,887 as of March 31, 2024. No shares issued and outstanding as of December 31, 2023.		32,420			-

Stockholders’ equity (Capital Deficiency)

Common Stock, $0.0001 par value; Authorized - 120,000,000 shares as of March 31, 2024 and December 31, 2023. Issued and outstanding-59,998,342 shares as of March 31, 2024 and 45,979,930 shares as of December 31, 2023.		4			3

Additional paid in capital		170,749			166,048
Accumulated deficit		(180,297	)		(162,970	)
Total stockholders’ equity (Capital Deficiency)		(9,544	)		3,081
		81,606			25,029

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-2

BIOMX INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(USD in thousands, except share and per share data)

(unaudited)

	Three Months Ended March 31,
	2024			2023

Research and development (“R&D”) expenses, net		4,105			4,564
General and administrative expenses		2,680			1,644

Operating loss		6,785			6,208

Other income		(88	)		(91	)
Interest expenses		850			565
Loss from change in fair value of Private Placement Warrants		8,010			-
Finance expense (income), net		1,765			(327	)

Loss before tax		17,322			6,355

Tax expenses		5			6

Net loss		17,327			6,361

Basic and diluted loss per share of Common Stock		0.28			0.20

Weighted average number of shares of Common Stock outstanding, basic and diluted		62,292,277			32,125,227

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-3

BIOMX INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE

PREFERRED SHARES AND IN STOCKHOLDERS’ EQUITY (CAPITAL DEFICIENCY)

(USD in thousands, except share and per share data)

(unaudited)

	Redeemable Convertible Preferred Shares				Common Stock				Additional Paid-in		Accumulated			Total Stockholders’ Equity (Capital
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficiency)

Balance as of January 1, 2024		-		-		45,979,930		3		166,048		(162,970	)		3,081

Issuance of Common Stock, Merger Warrants and Redeemable Convertible Preferred Shares upon the APT acquisition, net of issuance cost (***)		40,470		12,561		9,164,968		1		3,227		-			3,228
Exercise of Pre-Funded Warrants into shares of Common Stock (**)						4,778,265		*		5		-			5
Issuance of Common Stock under Open Market Sales Agreement, net of $1 issuance costs (**)						75,179		*		19		-			19
Stock-based compensation expenses						-		-		909		-			909
Issuance of Redeemable Convertible Preferred Shares upon March 2024 PIPE, net of issuance costs (**)		216,417		19,859						541					541
Net loss												(17,327	)		(17,327	)
Balance as of March 31, 2024		256,887		32,420		59,998,342		4		170,749		(180,297	)		(9,544	)

*()**	Less than $1.
()**	See Note 9A.
()*	See Note 1D.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-4

BIOMX INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(USD in thousands, except share and per share data)

(unaudited)

	Common Stock				Additional Paid-in		Accumulated			Total Stockholders’
	Shares		Amount		Capital		Deficit			Equity

Balance as of January 1, 2023		29,976,582		2		157,838		(136,801	)		21,039

Issuance of Common Stock and warrants under Private Investment in Public Equity (“PIPE”), net of $176 issuance costs (**)		3,199,491		*		1,293		-			1,293
Stock-based compensation expenses		-		-		175		-			175
Net loss		-		-		-		(6,361	)		(6,361	)

Balance as of March 31, 2023		33,176,073		2		159,306		(143,162	)		16,146

(*)	Less than $1.

(**)

See Note 9A.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-5

BIOMX INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(USD in thousands, except share and per share data)

(unaudited)

	For the Three Months Ended March 31,
	2024			2023
CASH FLOWS – OPERATING ACTIVITIES
Net loss		(17,327	)		(6,361	)

Adjustments required to reconcile cash flows used in operating activities:
Depreciation and amortization		229			223
Stock-based compensation		177			175
Amortization of debt issuance costs		-			68
Finance expense (income), net		(456	)		(123	)
Changes in other liabilities		(2	)		4
Loss from change in fair value of Private Placement Warrants		8,010			-
Private Placement Warrants issuance cost		732			-

Changes in operating assets and liabilities:
Other current and non-current assets		562			(174	)
Trade accounts payable		(1,775	)		363
Other accounts payable		(122	)		806
Net change in operating leases		(1,384	)		(26	)
Net cash used in operating activities		(11,356	)		(5,045	)

CASH FLOWS – INVESTING ACTIVITIES
Cash and Restricted Cash acquired from the APT acquisition		663			-
Proceeds from short-term deposits		-			2,000
Purchases of property and equipment		-			(10	)
Net cash provided by investing activities		663			1,990

CASH FLOWS – FINANCING ACTIVITIES
Issuance of Private Placement Warrants under March 2024 PIPE		28,745			-
Issuance of Redeemable Convertible Preferred Shares under March 2024 PIPE		21,269			-
March 2024 PIPE issuance costs		(316	)		-
Issuance of Common Stock and Warrants under PIPE		-			1,469
Pre-Funded Warrants exercise		5			-
Issuance of Common Stock under Open Market Sales Agreement, net of issuance costs		19			-
Repayment of long-term debt		(10,747	)		(419	)
Net cash provided by financing activities		38,975			1,050

Increase(decrease) in cash and cash equivalents and restricted cash		28,282			(2,005	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(31	)		13
Cash and cash equivalents and restricted cash at the beginning of the period		15,864			32,294
Cash and cash equivalents and restricted cash at the end of the period		44,115			30,302

RECONCILIATION OF AMOUNTS ON CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents		43,007			29,346
Restricted cash		1,108			956
Total cash and cash equivalents and restricted cash		44,115			30,302

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest		1,419			495
Taxes paid		3			6

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:
Issuance costs from PIPE included in trade accounts payable		-			176
Property and equipment purchases included in accounts payable and Trade payable		17			-
Issuance cost from March 2024 PIPE		1,826			-
Issuance cost from the APT acquisition		62
Issuance of Common Stock under the APT acquisition		3,041			-
Issuance of Redeemable Convertible Preferred Shares under the APT acquisition		12,610			-
Issuance of Merger Warrants under the APT acquisition		200			-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-6

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 1 – GENERAL

General information

BiomX Inc. (individually, and together with its subsidiaries, BiomX Ltd. (“BiomX Israel”), RondinX Ltd. and Adaptive Phage Therapeutics LLC,(“APT”), the “Company” or “BiomX”) was incorporated in 2017. The Company’s shares of Common Stock and units are traded on the NYSE American under the symbols PHGE and PHGE.U, respectively. Certain warrants are currently quoted on OTC Pink under the symbol “PHGEW”.

BiomX is developing both natural and engineered phage cocktails designed to target and destroy harmful bacteria in chronic diseases, focusing its efforts, at this point, on cystic fibrosis and on diabetic foot osteomyelitis. BiomX discovers and validates proprietary bacterial targets and customizes phage compositions against these targets. The Company’s headquarters are located in Ness Ziona, Israel.

On March 6, 2024, the Company entered into an agreement and plan of merger (the “Merger Agreement”) with APT and certain other parties, as a result of which APT became a wholly-owned subsidiary of the Company (the “Acquisition”), as further defined below. Additionally, on March 15, 2024, concurrently with the consummation of the Acquisition, the Company consummated a private placement (the “March 2024 PIPE”) with certain investors pursuant to which such investors purchased an aggregate of 216,417 shares of our Series X non-voting convertible preferred share, par value $0.0001 per share (the “Redeemable Convertible Preferred Shares”), with each share of Redeemable Convertible Preferred Shares being convertible into 1,000 shares of the Company’s Common Stock, and warrants (the “Private Placement Warrants”) to purchase up to an aggregate of 108,208,500 shares of the Company’s Common Stock, for aggregate gross proceeds of approximately $50,000. See note 1D for further information regarding the Acquisition.

Israel-Hamas war

On October 7, 2023, an unprecedented attack was launched against Israel by terrorists from the Hamas terrorist organization that infiltrated Israel’s southern border from the Gaza Strip and in other areas within the state of Israel attacking civilians and military targets while simultaneously launching extensive rocket attacks on the Israeli population. These attacks resulted in extensive deaths, injuries and kidnapping of civilians and soldiers. In response, the Security Cabinet of the State of Israel declared war against Hamas and a military campaign against these terrorist organizations commenced in parallel to their continued rocket and terror attacks. In addition, Hezbollah, an Islamist terrorist group that controls large portions of southern Lebanon, has attacked military and civilian targets in Northern Israel, to which Israel has responded.

To date, the State of Israel continues to be at war with Hamas and in an armed conflict with Hezbollah.

BiomX headquarters and principal offices and most of its operations are located in the State of Israel. In addition, most of the key employees and officers are residents of Israel. Accordingly, political, economic and military conditions in Israel and the surrounding region may directly affect its business.

While a few employees of the Company were called to reserve duty in the Israel Defense Forces, the ongoing war with Hamas has not, since its inception, materially impacted BiomX’s business or operations. Furthermore, BiomX does not expect any delays to its programs as a result of the situation. However, at this time, it is not possible to predict the intensity or duration of Israel’s war against Hamas, nor predict how this war will ultimately affect BiomX business and operations or Israel’s economy in general.

F-7

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 1 – GENERAL (Cont.)

Going concern

The Company has incurred significant losses and negative cash flows from operations and incurred an accumulated deficit of $180,297 as of March 31, 2024. The Company expects to continue to incur additional losses and negative cash flows from operations for the foreseeable future. The Company plans to continue to fund its current operations, as well as other development activities relating to additional product candidates, through future issuances of debt and/or equity securities, loans and possibly additional grants from the Israel Innovation Authority (“IIA”) (see note 7A) and other government institutions. The Company’s ability to raise additional capital in the equity and debt markets is dependent on a number of factors including, but not limited to, the market demand for the Company’s Common Stock, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are favorable to it. If the Company is unable to raise capital when needed or on attractive terms, it may be forced to delay or reduce its research and development programs. On March 15, 2024, the Company raised approximately $50,000 under the March 2024 PIPE. Management believes that its available funds as of the issuance date of the financial statements, which include the funds received under the March 2024 PIPE, will be sufficient to fund its operations for at least one year from the issuance date of these financial statements. However, the conversion of the Redeemable Convertible Preferred Shares that was issued in connection with the March 2024 PIPE and the Acquisition is subject to stockholder approval and obtaining such approval is not guaranteed. If such approval is not received, the Company may be required to redeem the Redeemable Convertible Preferred Shares at its fair value. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed consolidated financial statements have been prepared on a going concern basis and do not include any adjustments that may result from the outcome of such circumstances.

Merger Agreement

On March 6, 2024, the Company, entered into the Merger Agreement with BTX Merger Sub I, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“First Merger Sub”), BTX Merger Sub II, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (“Second Merger Sub”), and APT. Pursuant to the Merger Agreement, First Merger Sub merged with and into APT, with APT being the surviving corporation and becoming a wholly owned subsidiary of the Company (the “First Merger”). Immediately following the First Merger, APT merged with and into Second Merger Sub, pursuant to which Second Merger Sub was the surviving entity. APT was a U.S.-based privately-held, clinical-stage biotechnology company pioneering the development of phage-based therapies to combat bacterial infection. As a result of the Acquisition, the Company is expected to have a pipeline that includes two Phase 2 assets each aimed at treating serious infections with unmet medical needs.

On March 15, 2024, the effective time of the Acquisition (the “Closing Date”), APT’s former stockholders were issued an aggregate of 9,164,968 shares of the Company’s Common Stock, 40,470 Redeemable Convertible Preferred Shares and Warrants to purchase up to an aggregate of 2,166,497 shares of the Company Common Stock (“Merger Warrants”). Each share of Redeemable Convertible Preferred Shares is convertible into an aggregate of 1,000 shares of Common Stock. The Merger Warrants will be exercisable at any time after the date of the receipt of BiomX stockholder approval at an exercise price of $5.00 per share and will expire on January 28, 2027. In the event the Redeemable Convertible Preferred Shares are not converted by the earlier to occur of (i) the time that meeting of BiomX stockholders is ultimately concluded or (ii) five months after the initial issuance of the Redeemable Convertible Preferred Shares, the Company may be required to pay to each holder of the Redeemable Convertible Preferred Shares an amount in cash equal to the fair value of the Redeemable Convertible Preferred Shares.

F-8

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 1 – GENERAL (Cont.)

The Redeemable Convertible Preferred Shares are classified as temporary equity in accordance with the provisions of ASC 480-10-S99, as they include clauses that could constitute redemption clauses that are outside of the Company’s control. The Merger Warrants are classified as equity, as they are indexed to the Company’s own shares and meet the classification requirements for stockholders’ equity classification under ASC 815-40.

Concurrently with the consummation of the Acquisition, the Company entered into a securities purchase agreement with certain investors, for aggregate gross proceeds of $50,000. See note 9A for further information.

Immediately following the Acquisition, and without taking into account the PIPE Preferred Shares and the Private Placement Warrants as described in note 9A, the Company’s stockholders prior to the Acquisition owned approximately 55% of the Company and APT’s stockholders prior to the Acquisition owned approximately 45% of the Company on a diluted basis

The Acquisition was accounted in accordance with Accounting Standards Codification (“ASC”) Topic 805, “Business Combinations,” using the acquisition method of accounting. The Company was identified as the accounting acquirer, based on the evaluation of the following facts and circumstances:

●

Pursuant to the Merger Agreement, the post- Acquisition board of directors of the Company consisted of seven directors, out of which the Company designated four board seats, with the Company’s chair of the board prior to the Acquisition continuing in his position, i.e. the majority of the post-closing board was designated by the Company.

●

The Chief Executive Officer and the majority of management roles are held by individuals who were affiliated with the Company prior to the Acquisition.

The Acquisition-related transaction costs are accounted for as expenses in the period in which the costs are incurred. The Company incurred transaction costs of $741 during the three months ended March 31, 2024, which were included in general and administrative expenses in the condensed consolidated statements of operations.

Purchase Price Allocation

The following sets forth the fair value of acquired identifiable assets and assumed liabilities of APT which includes preliminary adjustments to reflect the fair value of intangible assets acquired as of March 15, 2024:

	Amounts
Cash and cash equivalents		509
Restricted cash		154
Other current assets		1,780
Property, plant and equipment		3,748
Operating lease right-of-use asset		7,953
IPR&D assets and Goodwill		15,788
Total assets		29,932

Trade accounts payable		(3,667	)
Other accounts payable		(2,595	)
Operating lease liability		(7,819	)
Total liabilities		(14,081	)
Total consideration		15,851

The following table summarizes the fair value of the consideration transferred to APT shareholders for the Acquisition:

	Amounts
Common Stock		3,041
Redeemable Convertible Preferred Shares		12,610
Merger Warrants		200
		15,851

F-9

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 1 – GENERAL (Cont.)

The fair value of shares of Common Stock issued by the Company was determined using the Company’s closing trading price on the Closing Date adjusted by a discount for lack of marketability (“DLOM”) of 9.4% as a registration statement will be filed within 45 days. The fair value of Redeemable Convertible Preferred Shares was determined using the Company’s closing trading price on the Closing Date adjusted by a DLOM of 14.9% as the conversion of the Redeemable Convertible Preferred Shares to shares of Common Stock is subject to the stockholder approval which is expected take place in July 2024. The Company determined the fair value of the Merger Warrants using the Black-Scholes model as of the Closing Date. The main assumptions used are as follows:

	Three Months Ended March 31,
	2024		2023
Underlying value of Common Stock ($)		0.37		-
Exercise price ($)		5.0		-
Expected volatility (%)		117.7		-
Expected terms (years)		2.87		-
Risk-free interest rate (%)		4.5		-

The fair value estimate for all identifiable assets and liabilities assumed is preliminary and is based on assumptions that market participants would use in pricing an asset, based on the most advantageous market for the asset (i.e., its highest and best use). This preliminary fair value estimate could include assets that are not intended to be used, may be sold, or are intended to be used in a manner other than their best use. Such estimates are subject to change during the measurement period, which is not expected to exceed one year. Any adjustments identified during the measurement period will be recognized in the period in which the adjustments are determined.

The Company recognized intangible assets related to the Acquisition, which consist of IPR&D valued at $15,287 using the Multi-Period Excess Earnings Method valuation method and of goodwill valued at $501. The goodwill is primarily attributed to the expected synergies from combining the operations of APT with the Company’s operations and to the assembled workforce of APT. The Company considered the criteria in ASC 350-30-35 and determined the estimated useful life of the IPR&D to be 20 years and will be amortized on a straight-line basis over its estimated useful life. The basis of amortization approximates the pattern in which the assets are utilized, over their estimated useful life. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. In case the Company reduces the estimated useful life for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life.

These intangible assets are classified as Level 3 measurements within the fair value hierarchy.

The actual APT net loss included in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2024, is as follows:

		March 31, 2024
Net loss attributable to APT			855

The unaudited pro forma financial information below summarizes the combined results of operations for BiomX Inc. (including its wholly owned subsidiaries, BiomX Ltd. and RondinX Ltd.) and APT. The unaudited pro forma financial information includes adjustments to reflect certain business combination effects, including: acquisition-related costs incurred by both parties and reversal of certain costs incurred by BiomX Inc. which would not have been incurred had the acquisition occurred on January 1, 2023. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the Acquisition had taken place at the beginning of fiscal 2023.

The following unaudited table provides certain pro forma financial information for the Company as if the Acquisition occurred on January 1, 2023:

		March 31, 2024*
Net loss			16,720

*	The pro forma amounts above are derived from historical numbers of the Company and APT.

F-10

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

Unaudited Condensed Financial Statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for condensed financial information. They do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair statement have been included (consisting only of normal recurring adjustments except as otherwise discussed).

The financial information contained in this report should be read in conjunction with the annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, that the Company filed with the U.S. Securities and Exchange Committee (the “SEC”) on April 4, 2024. The year-end balance sheet data was derived from the audited consolidated financial statements as of December 31, 2023.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities in the financial statements and the amounts of expenses during the reported years. The most significant estimates in the Company’s financial statements relate to accruals for research and development expenses, valuation of stock-based compensation awards, purchase price allocation related to the Acquisition and the Private Placement Warrants fair value revaluation. These estimates and assumptions are based on current facts, future expectations, and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates.

The full extent to which the Israel-Hamas war may directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are uncertain, as well as the economic impact on local, regional, national and international markets.

Business Acquisition

The Company allocates the fair value of consideration transferred in a business acquisition to the assets acquired, liabilities assumed based on their fair values at the acquisition date. Acquisition-related expenses are recognized separately from the business Acquisition and are expensed as incurred. The excess of the fair value of the consideration transferred over the fair value of the assets acquired, liabilities assumed in the acquired business is recorded as IPR&D and goodwill. The fair value of the consideration transferred may include equity securities. The allocation of the consideration transferred in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. The cumulative impact of revisions during the measurement period is recognized in the reporting period in which the revisions are identified. The Company includes the results of operations of the businesses that it has acquired in its consolidated results prospectively from the respective dates of Acquisition.

F-11

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Cont.)

Financial instruments

When the Company issues freestanding instruments, it first analyzes the provisions of ASC 480, “Distinguishing Liabilities From Equity” (“ASC 480”) in order to determine whether the instrument should be classified as a liability, with subsequent changes in fair value recognized in the consolidated statements of operations in each period. If the instrument is not within the scope of ASC 480, the Company further analyzes the provisions of ASC 815-10 in order to determine whether the instrument is considered indexed to the entity’s own stock and qualifies for classification within equity.

When the Company issues preferred shares, it first considers the provisions of ASC 480, in order to determine whether the preferred shares should be classified as a liability. If the instrument is not within the scope of ASC 480, the Company further analyzes the instrument’s characteristics in order to determine whether it should be classified within temporary equity (mezzanine) or within permanent equity in accordance with the provisions of ASC 480-10-S99. The Company’s Redeemable Convertible Preferred Shares are not mandatorily or currently redeemable. However, they include clauses that could constitute as redemption clauses that are outside of the Company’s control. As such, all Redeemable Convertible Preferred Shares have been presented outside of permanent equity. See note 1D and 9A for further information regarding the Redeemable Convertible Preferred Shares.

When the Company issues warrants, it first considers the provisions of ASC 815-40, “Contracts in Entity’s Own Equity” (“ASC 815-40”) in order to determine whether the warrants should be classified as equity. Equity classification is permitted when warrants are indexed to the Company’s own shares and meet the classification requirements for stockholders’ equity classification under ASC 815-40. If the warrants are not within the scope of ASC 815-40, the Company accounts for the warrants in accordance with the guidance contained in Accounting Standards Codification 815 (“ASC 815”), “Derivatives and Hedging”, under which the warrants do not meet the criteria for equity treatment and must be recorded as derivative liabilities. Accordingly, the Company classifies the Private Placement Warrants as liabilities at their fair value and adjusts the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until the warrants are exercised or expire, and any change in fair value is recognized in the condensed consolidated statements of operations. See note 9A for further information regarding the Private Placement Warrants.

Basic and diluted loss per share

Basic loss per share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the period, fully vested warrants with no exercise price for the Company’s Common Stock and fully vested Pre-Funded Warrants for the Company’s Common Stock at an exercise price of $0.001 per share, as the Company considers these shares to be exercised for little to no additional consideration. The calculation excludes shares of Common Stock purchased by the Company and held as treasury shares. Diluted loss per share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the year, plus the number of shares of Common Stock that would have been outstanding if all potentially dilutive shares of Common Stock had been issued, using the treasury stock method, in accordance with ASC 260-10, “Earnings per Share.” Potentially dilutive shares of Common Stock were excluded from the calculation of diluted loss per share for all periods presented due to their anti-dilutive effect due to losses in each period.

The Company computes net loss per share using the two-class method required for participating securities. The two-class method requires income available to common stockholders for the period to be allocated between shares of Common Stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considers its Redeemable Convertible Preferred Shares to be participating securities as the holders of the Redeemable Convertible Preferred Shares would be entitled to dividends that would be distributed to the holders of Common Stock, on a pro-rata basis assuming conversion of all Redeemable Convertible Preferred Shares into shares of Common Stock. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss for the periods presented was not allocated to the Company’s participating securities.

Intangible Assets

Goodwill

Goodwill reflects the excess of the consideration transferred at the business combination date over the fair values of the identifiable net assets acquired. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The primary items that generate goodwill include the value of the synergies between the acquired company and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. ASC 350, “Intangibles—Goodwill and Other” allows an entity to first assess qualitative factors to determine whether a quantitative goodwill impairment test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that the fair value is less than its carrying amount. Otherwise, no further impairment testing is required.

F-12

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Cont.)

The Company’s goodwill is tested for impairment at least on an annual basis, on the last day of the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate the carrying value of a reporting unit may not be recoverable. When necessary, the Company records charges for impairments of goodwill for the amount by which the carrying amount of the respective reporting unit exceeds its fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

Intangible assets

The definite life intangible asset is amortized using the straight-line method over its estimated period of useful life. Amortization of the technology acquired is recorded under research and development expenses in the condensed consolidated statements of operations.

Recent Accounting Standards

Recently issued accounting pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 “Segment Reporting: Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). This guidance expands public entities’ segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker 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 that are currently required annually. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280, “Segment Reporting”. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. The Company adopted the guidance on January 1, 2024, and concluded that its adoption did not have a material effect on the Company’s financial position or results of operations.

Recently issued accounting pronouncements, not yet adopted

In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.

NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company accounts for financial instruments in accordance with ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 – Quoted prices in non-active markets or in active markets for similar assets or liabilities, observable inputs other than quoted prices, and inputs that are not directly observable but are corroborated by observable market data.

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

There were no changes in the fair value hierarchy levelling during the three months ended March 31, 2024 and year ended December 31, 2023.

F-13

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS (Cont.)

The following table summarizes the fair value of our financial assets and liabilities that were accounted for at fair value on a recurring basis, by level within the fair value hierarchy:

	March 31, 2024
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents:
Money market funds		37,124		-		-		37,124
Foreign exchange contracts receivable				99		-		99
		37,124		99		-		37,223
Liabilities:
Contingent consideration						153		153
Private Placement Warrants						36,755		36,755
		-				36,908		36,908

	December 31, 2023
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents:
Money market funds		11,377		-		-		11,377
Foreign exchange contracts receivable				256		-		256
		11,377		256		-		11,633
Liabilities:
Contingent consideration		-		-		155		155
		-		-		155		155

The changes in the fair value of the Company’s Level 3 financial liabilities, which are measured on a recurring basis are as follows:

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Beginning balance	-		-
Private Placement Warrants		28,745		-
Revaluation recorded in financial expense		8,010		-
Ending balance		36,755		-

Financial instruments with carrying values approximating fair value include cash and cash equivalents, restricted cash, short-term deposits, other current assets, trade accounts payable and other accounts payable, due to their short-term nature.

F-14

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS (Cont.)

The Company determined the fair value of the liabilities for the contingent consideration based on a probability discounted cash flow analysis. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration is based on several factors, such as: the attainment of future clinical, developmental, regulatory, commercial and strategic milestones relating to product candidates for treatment of primary sclerosing cholangitis. The discount rate applied ranged from 3.60% to 4.4%. The contingent consideration is evaluated quarterly, or more frequently, if circumstances dictate. Changes in the fair value of contingent consideration are recorded in consolidated statements of operations. Significant changes in unobservable inputs, mainly the probability of success and cash flows projected, could result in material changes to the contingent consideration liability. Changes in contingent consideration for the three months ended March 31, 2024 and March 31, 2023, resulted from the passage of time and discount rate revaluation.

The Company uses foreign exchange contracts (mainly option and forward contracts) to hedge cash flows from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, the Company recognizes gains or losses that offset the revaluation of the cash flows also recorded under financial expenses (income), net in the condensed consolidated statements of operations. As of March 31, 2024, the Company had outstanding foreign exchange contracts for the exchange of USD to NIS in the amount of approximately $1,711 with a fair value asset of $99. As of December 31, 2023, the Company had outstanding foreign exchange contracts for the exchange of USD to NIS in the amount of approximately $4,136 with a fair value asset of $256.

The Company determined the fair value of the liabilities for the Private Placement Warrants using the Black-Scholes model, a Level 3 measurement, within the fair value hierarchy.

The main assumptions used are as follows:

	Three Months Ended March 31,
	2024		2023
Underlying value of Common Stock ($)		0.37-0.45		-
Exercise price ($)		0.23		-
Expected volatility (%)		117.7-117.8		-
Expected terms (years)		2.3-2.25		-
Risk-free interest rate (%)		4.5-4.6		-

F-15

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 4 – OTHER CURRENT ASSETS

	March 31, 2024		December 31, 2023
Government institutions		120		66
Prepaid insurance		119		505
Other prepaid expenses		362		128
Grants receivables		2,241		574
Other		144		495
Other current assets		2,986		1,768

NOTE 5 – OTHER ACCOUNTS PAYABLE

	March 31, 2024		December 31, 2023
Employees and related institutions		2,197		1,852
Accrued expenses		2,393		1,289
Government institutions		663		175
Prepaid sublease income		28		28
Severance related to former employees of APT		526		-
Other		229		-
		6,036		3,344

NOTE 6 – LEASES

On August 9, 2019, APT entered into a lease agreement (the “Lease Agreement”) with ARE-708 Quince Orchard, LLC (the “Landlord”), for office and lab spaces in Gaithersburg, Maryland starting on September 1, 2019. Over the course of years, APT and the Landlord amended the Lease Agreement in order to expand the square footage and to extend the lease period until November 28, 2034. The agreement included 49,625 square feet of area. The monthly lease payments under the lease agreement are approximately $255. On March 5, 2024, in connection with the Acquisition, APT and the Landlord, signed an amendment to the lease agreement. Pursuant to the amendment, the leased area will be decreased to 25,894 square feet (the “Remaining Area”), effective as of December 31, 2024. Following the amendment, the revised monthly lease payments will be approximately $134. In exchange, APT was required to pay a relinquished premises fee in an amount equal to $1,500 within 10 business days following March 15, 2024 (the “Amendment Effective Date”). In addition, the Company issued the Landlord 250,000 warrants to purchase up to an aggregate of 250,000 shares of the Company’s Common Stock at an exercise price of $5.00 per share. The warrants will become exercisable at any time after the date of the receipt of BiomX stockholder approval and will expire on January 28, 2027. The amendment also included a one-time option to early terminate the lease agreement on February 28, 2029 with respect to the Remaining Area under certain terms. The execution of the early termination will require APT to pay a termination fee of $3,000.

APT accounted for the decreased leased area and the termination option as a modification as it continues to use the area for a period of time after the termination. The modification occurred before the Acquisition as APT signed the amendment before the Closing Date but was contingent upon the Acquisition. The operating lease right-of-use assets and operating lease liabilities contemplate the termination option.

Lease expenses recorded in the condensed statements of operations were $593 and $315 for the three months ended March 31, 2024 and 2023, respectively.

F-16

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 7 – COMMITMENTS AND CONTINGENCIES

In March 2021, the IIA approved two new applications in relation to the Company’s cystic fibrosis product candidate for an aggregate budget of NIS 10,879 (approximately $3,286) and for the Company’s product candidate for Inflammatory Bowel Disease (“IBD”) and Primary Sclerosing Cholangitis for an aggregate revised budget of NIS 6,753 (approximately $2,118). The IIA committed to fund 30% of the approved budgets. The programs are for the period beginning January 2021 through December 2021. Through March 31, 2024, the Company received NIS 5,289 (approximately $1,622) from the IIA and does not expect to receive additional funds with respect to these programs.

In August 2021, the IIA approved an application that supports upgrading the Company’s manufacturing capabilities for an aggregate budget of NIS 5,737 (approximately $1,778). The IIA committed to fund 50% of the approved budget. The program was for the period beginning July 2021 through June 2022. The program does not bear royalties. Through March 31, 2024, the Company received NIS 1,912 (approximately $577) from the IIA with respect to this program.

In March 2022, the IIA approved an application for a total budget of NIS 13,004 (approximately $4,094) in relation to the Company’s cystic fibrosis product candidate. The IIA committed to fund 30% of the approved budget. The program was for the period beginning January 2022 through December 2022. Through March 31, 2024, the Company received NIS 1,365 (approximately $395) from the IIA with respect to this program.

In March 2023, the IIA approved an application for a total budget of NIS 11,283 (approximately $3,164) in relation to the Company’s cystic fibrosis product candidate. The IIA committed to fund 30% of the approved budget. The program was for the period beginning January 2023 through December 2023. Through March 31, 2024, the Company received NIS 2,783 (approximately $768) from the IIA with respect to this program.

According to the agreement with the IIA, excluding the August 2021 program, BiomX Israel will pay royalties of 3% to 3.5% of future sales up to an amount equal to the accumulated grant received including annual interest of LIBOR linked to the USD. Starting January 2024, the IIA has notified that the interest has changed to the 12-month Secured Overnight Financing Rate (“SOFR”) as published on the first trading day of each calendar year. BiomX Israel may be required to pay additional royalties upon the occurrence of certain events as determined by the IIA, that are within the control of BiomX Israel. No such events have occurred or were probable of occurrence as of the balance sheet date with respect to these royalties. Repayment of the grant is contingent upon the successful completion of the BiomX Israel’s R&D programs and generating sales. BiomX Israel has no obligation to repay these grants if the R&D program fails, is unsuccessful or aborted or if no sales are generated. The Company had not yet generated sales as of March 31, 2024; therefore, no liability was recorded in these condensed consolidated financial statements. IIA grants are recorded as a reduction of R&D expenses, net.

Through March 31, 2024, total grants approved from the IIA aggregated to approximately $9,353 (NIS 32,068). Through March 31, 2024, the Company had received an aggregate amount of $8,003 (NIS 27,423) in the form of grants from the IIA. Total grants subject to royalties’ payments aggregated to approximately $7,413. As of March 31, 2024, BiomX Israel had a contingent obligation to the IIA in the amount of approximately $8,033 including annual interest of SOFR applicable to dollar deposits.

F-17

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 7 – COMMITMENTS AND CONTINGENCIES (Cont.)

	B.	In August 2019, APT was awarded $9,638 from the U.S. Army Medical Research Acquisition Activity (“USAMRAA”) and the U.S. Army Medical Research & Development Command (“USAMRDC”) to advance personalized phage therapy from niche to broad use. This award is intended to lay the groundwork for rapid advancement of personalized phage therapy to commercialization for the variety of clinical indications and bacterial pathogens representing un-met needs with a focus on infections with significant military relevance. The competitive award was granted by USAMRAA and USAMRDC in collaboration with the Medical Technology Enterprise Consortium (“MTEC”), a 501(c)(3) biomedical technology consortium working in partnership with the Department of Defense. Under the cost reimbursement contract, MTEC reimburses APT for approved incurred costs that are based upon the achievement of certain milestones for conduct and completion of a Phase 1/2 study utilizing APT’s PhageBank to treat patients with urinary tract infections (“UTIs”). Over the course of years, APT entered into certain modifications to the contract to include additional activities for APT’s UTI program and perform pre-clinical activities to advance the Diabetic Foot Ulcer clinical program, as well as to include activities to advance potential bacteriophage-based vaccines against COVID-19, for a total contract value of $36,214. In conjunction with this agreement, APT is subject to a royalty assessment fee of an amount equal to 3% of the total funded value of the research project award. No liability was recorded in these condensed consolidated statements. During the period between the Acquisition and March 31, 2024, APT recorded $196 as a reduction of R&D expenses, net.

	C.	On June 23, 2022 (“Effective Date”), BiomX Israel entered into a research collaboration agreement with Boehringer Ingelheim International GmbH (“BI”) for a collaboration to identify biomarkers for IBD. Under the agreement, BiomX Israel is eligible to receive fees totaling $1,411 to cover costs to be incurred by BiomX Israel in conducting the research plan under the collaboration. The fees were paid in four installments according to certain activities under the agreement. In December 2023, the Company completed its obligations with respect to this agreement and the last installment of $211 was received on January 18, 2024. The consideration is recorded as a reduction of R&D expenses, net in the condensed consolidated statements of operations according to the input model method on a cost-to-cost basis.

NOTE 8 – LONG-TERM DEBT

On August 16, 2021 (the “Closing Date”), the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Hercules Capital, Inc. (“Hercules”), with respect to a venture debt facility. Under the Loan Agreement, $15,000 was advanced to the Company on the date the Loan Agreement was executed. The Company was required to make interest only payments through March 1, 2023, and started to then repay the principal balance and interest in equal monthly installments through September 1, 2025.

The Loan Agreement provided that the Company could prepay advances under the Loan Agreement, in whole or in part, at any time subject to a prepayment charge equal to 1.0% after 24 months but prior to 36 months following the Closing Date Upon prepayment or repayment of all or any of the term loans under the Term Loan Facility, the Company is required to pay an end of term charge (“End of Term Charge”) equal to 6.55% of the total aggregate amount of the term loans being prepaid or repaid. On March 19, 2024, the Company prepaid the entire balance under the Term Loan Facility in a total of $10,428. The prepayment included the End of Term Charge of $983 and accrued interest of $69. The Company received from Hercules a waiver regarding the prepayment charge that should have been 1% out of the prepaid principal amount that equals to $94.

Interest expense relating to the term loan, which is included in interest expense in the condensed statements of operations was $850 and $565 for the three months ended March 31, 2024 and March 31, 2023, respectively.

F-18

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 9 – STOCKHOLDERS EQUITY

Share Capital:

Private Investment in Public Equity:

On February 22, 2023, the Company entered into a Securities Purchase Agreement to issue and sell an aggregate of 15,997,448 shares of its Common Stock and 14,610,714 pre-funded warrants (the “Pre-Funded Warrants”) at a price of $0.245 per share and $0.244 per Pre-Funded Warrant in the PIPE. The net proceeds from the PIPE were approximately $7,152, after deducting issuance costs of $333. As of March 31, 2024, 4,778,265 Pre-Funded Warrants were exercised into 4,778,265 shares of Common Stock for total consideration of $5 at an exercise price of $0.001 per share of Common Stock.

On March 15, 2024, in connection with the Acquisition, the Company issued to APT’s former stockholders 9,164,968 shares of the Company’s Common Stock, 40,470 Redeemable Convertible Preferred Shares and 2,166,497 Merger Warrants. See note 1D for further information.

Concurrently with the consummation of the Acquisition as described in note 1D, the Company entered into the March 2024 PIPE, pursuant to which such investors purchased an aggregate of 216,417 Redeemable Convertible Preferred Shares (“PIPE Preferred Shares”) and Private Placement Warrants to purchase up to an aggregate of 108,208,500 shares of the Company’s Common Stock, at a combined price of $231.10 per share. The PIPE Preferred Shares and the Private Placement Warrants were issued in a private placement pursuant to an exemption from registration requirements under the Securities Act for aggregate gross proceeds of $50,000. Each Private Placement Warrant’s exercise price equals to $0.2311, subject to customary adjustments for stock dividends, stock splits, reclassifications and the like, will become exercisable at any time after the date of the receipt of BiomX stockholder approval and will expire within two years after the approval date. Under certain circumstances, the Company may be required to pay to each holder of the Private Placement Warrants (i) an amount in cash equal to the holder’s total purchase price for the shares of Common Stock purchased (the “Buy-In Price”) or credit such holder’s balance account with the Depository Trust Company (“DTC”) for such shares of Common Stock shall terminate, or (ii) promptly honor its obligation to deliver to such holder a certificate or certificates representing such shares of Common Stock or credit such holder’s balance account with DTC, as applicable, and pay cash to such holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) Weighted Average Price (as defined in the Private Placement Warrant) on the trading day immediately preceding the exercise date.

The Company accounted for the Private Placement Warrants as liabilities as the Private Placement Warrants are not considered indexed to the entity’s own stock based on the provision of ASC 815. The Private Placement Warrants will be measured at fair value at inception and in subsequent reporting periods with changes in fair value recognized in the condensed consolidated statements.

The terms of the PIPE Preferred Shares are substantially the same as those of the Redeemable Convertible Preferred Shares issued under the Acquisition and were accounted for as temporary equity. See note 1D for further information.

In connection therewith, the Company issued warrants to purchase shares of the Company’s Common Stock to the Placement Agents (the “Agents Warrants”). See Note 9B for further information.

The Company allocated the total consideration from the issuance of the 2024 March PIPE first to the fair value of the Private Placement Warrants and then to the PIPE Preferred Shares. The Company had transaction costs of approximately $3,317 out of which $1,273 are Stock-Based Compensation due to issuance of the Agents Warrants. The transaction costs were allocated in the same manner as the consideration. Issuance costs which were allocated to the PIPE Preferred Shares were $1,410 and deducted from Redeemable Convertible Preferred Shares, and issuance costs that were allocated to the Private Placement Warrants were $1,907 and were expensed immediately.

At-the-market Sales Agreement:

In December 2023, pursuant to a registration statement on Form S-3 declared effective by the SEC on January 2, 2024, the Company entered into an At the Market Offering Agreement with H.C. Wainwright & Co., LLC (“Wainwright”), pursuant to which the Company may issue and sell shares of Common Stock having an aggregate offering price of up to $7,500 from time to time through Wainwright. During the three months ended March 31, 2024, the Company sold 75,179 shares of Common Stock under this agreement, at an average price of $0.271 per share, raising aggregate net proceeds of approximately $19, after deducting an aggregate commission of $1.

F-19

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 9 – STOCKHOLDERS EQUITY (Cont.)

Preferred Stock:

The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s Board of Directors (the “Board”).

On March 15, 2024, the Company issued 40,470 and 216,417 Redeemable Convertible Preferred Shares, par value $0.0001 per share, as part of the Acquisition and the March 2024 PIPE, respectively. See note 1D and 9A for further information.

Warrants:

As of March 31, 2024, the Company had the following outstanding warrants to purchase Common Stock issued to stockholders:

Warrant	Issuance Date	Expiration Date	Exercise Price Per Share		Number of Shares of Common Stock Underlying Warrants
Public Warrants	IPO (December 13, 2018)	October 28, 2024		11.50		3,500,000
2021 Registered Direct Offering Warrants	SPA (July 28, 2021)	January 28, 2027		5.00		2,812,501
Pre-Funded Warrants	February 27, 2023	-		0.001		1,869,755
Pre-Funded Warrants	May 4, 2023	-		0.001		7,962,694
Merger Warrants	March 15, 2024	January 28, 2027		5.00		2,166,497
Private Placement Warrants	March 15, 2024	Two years after the stockholder approval		0.2311		108,208,500
Agents Warrants	March 15, 2024	Two years after the stockholder approval		0.2311		9,523,809
						136,043,756

Stock-based Compensation:

On March 15, 2024, the Company issued 9,523,809 Agents Warrants to purchase up to an aggregate of 9,523,809 shares of the Company’s Common Stock to the Placement Agents in connection with the March 2024 PIPE. The exercise price of the Agents Warrants is $0.2311 per share and will become exercisable at any time after the date of the receipt of BiomX stockholder approval and will expire within two years after the approval date.

The Company accounted for the Agents Warrants under the scope of ASC 718-10 “Stock-Based Payment”, (“ASC 718-10”), and treated them as issuance costs of the March 2024 PIPE as the Company considers these Warrants as consideration for receipt of Private Placement Services.

The Company determined the fair value of the Agents Warrants using the Black-Scholes model as of March 5, 2024. The main assumptions used are as follows:

	Three Months Ended March 31,
	2024		2023
Underlying value of Common Stock ($)		0.23		-
Exercise price ($)		0.23		-
Expected volatility (%)		100.6		-
Expected terms (years)		2.32		-
Risk-free interest rate (%)		4.4		-

F-20

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 9 – STOCKHOLDERS EQUITY (Cont.)

A summary of options granted to purchase the Company’s Common Stock under the Company’s share option plans is as follows:

	For the Three Months Ended March 31, 2024
	Number of Options			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at the beginning of period		5,280,711		$	0.54	$	72
Granted		-		$	-
Forfeited		(87,363	)	$	0.37
Expired		-			-
Exercised		-		$	-
Outstanding at the end of period		5,193,348			0.54	$	587
Exercisable at the end of period		3,249,620			0.57
Weighted average remaining contractual life of outstanding options – years as of March 31, 2024		6.42

Warrants:

As of March 31, 2024, the Company had the following outstanding compensation related warrants to purchase Common Stock:

Warrant

Issuance
Date

Expiration
Date

Exercise
Price
Per Share

Number of
Shares of
Common Stock
Underlying
Warrants

Private Warrants issued to scientific founders

November 27, 2017

2,974

Landlord Warrants*

March 15, 2024

January 28, 2027

5.00

250,000

252,974

(*)

See note 6.

F-21

BIOMX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(USD and NIS in thousands, except share and per share data)

(unaudited)

NOTE 9 – STOCKHOLDERS EQUITY (Cont.)

The following table sets forth the total stock-based payment expenses resulting from options granted, included in the statements of operations:

	Three Months Ended March 31,
	2024		2023
Research and development expenses, net		65		87
General and administrative		112		88
		177		175

NOTE 10 – BASIC AND DILUTED LOSS PER SHARE

Basic loss per share is computed on the basis of the net loss for the period divided by the weighted average number of shares of Common Stock outstanding during the period, fully vested warrants with no exercise price for the Company’s Common Stock and fully vested Pre-Funded Warrants for the Company’s Common Stock at an exercise price of $0.001 per share, as the Company considers these shares to be exercised for little to no additional consideration. As of March 31, 2024, the basic loss per share calculation included a weighted average number of 2,974 of fully vested warrants and 9,832,449 of fully vested Pre-Funded Warrants. As of March 31,2023, the basic loss per share calculation included a weighted average number of 2,776,429 of fully vested Pre-Funded Warrants.

Diluted loss per share is based upon the weighted average number of shares of Common Stock and of potential shares of Common Stock outstanding when dilutive. Potential shares of Common Stock equivalents include outstanding stock options and warrants, which are included under the treasury stock method when dilutive. The calculation of diluted loss per share for the three months ended March 31, 2024 does not include 5,193,348, 126,461,307, 2,000,000 and 256,887,000 of shares underlying options, shares underlying warrants, contingent shares and Redeemable Convertible Preferred Shares, respectively, because the effect would be anti-dilutive.

NOTE 11 – EVENTS DURING THE PERIOD

On March 21, 2024, RondinX signed an agreement with the Israeli tax authority in respect to an assessment for the years 2018-2022. The agreement concluded that RondinX’s IP and employees were transferred to BiomX Israel on the acquisition date. As a result, RondinX had a capital gain equal to its carryforward losses of $2,785 (NIS 10,036) and no further payment will be required.

NOTE 12 – SUBSEQUENT EVENTS

On May 9, 2024, the Company received a payment of $1,617 from MTEC as part of the reimbursement of approved incurred costs between December 2023 and February 2024.

F-22

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

References in this Quarterly Report to “the Company”, “BiomX”, “we”, “us” or “our”, mean BiomX Inc. and its consolidated subsidiaries unless otherwise expressly stated or the context indicates otherwise.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the notes thereto contained elsewhere in this Quarterly Report. The analysis of the financial condition and results of operations includes Adaptive Phage Therapeutics LLC, a Delaware limited liability company (formerly Adaptive Phage Therapeutics Inc., a Delaware corporation), or APT from the date that we acquired it March 15, 2024. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those discussed in any forward-looking statement because of various factors discussed in this Quarterly Report and in our other filings with the U.S. Securities and Exchange Committee, or the SEC.

General

We are a clinical stage product discovery company developing products using both natural and engineered phage technologies designed to target and kill specific harmful bacteria associated with chronic diseases, such as cystic fibrosis, or CF and diabetic foot osteomyelitis, or DFO. Bacteriophage or phage are bacterial, species-specific, strain-limited viruses that infect, amplify and kill the target bacteria and are considered inert to mammalian cells. By utilizing proprietary combinations of naturally occurring phage and by creating novel phage using synthetic biology, we develop phage-based therapies intended to address both large-market and orphan diseases.

Based on the urgency of treating the infection (whether acute or chronic), the susceptibility of the target bacteria to phage (e.g. the ability to identify a phage cocktail that would target a broad range of bacterial strains) and other considerations, we offer two phage-based product types:

(1)

Fixed cocktail therapy – in this approach a single product containing a fixed number of selected phage is developed to cover a wide range of bacterial strains, thus allowing treatment of broad patient populations with the same product. Fixed cocktails are developed using our proprietary BOLT platform, in which high throughput screening, directed evolution, and bioinformatic approaches are leveraged to produce an optimal phage cocktail.

(2)

Personalized therapy – in this approach a large library of phage is developed, of which a single optimal phage is personally matched to treat specific patients. Matching optimal phage with patients is carried out using a proprietary phage susceptibility testing, where multiple considerations are analyzed simultaneously – allowing for an efficient screen of the phage library while maintaining short

turnaround times.

In our therapeutic programs, we focus on using phage therapy to target specific strains of pathogenic bacteria that are associated with diseases. Our phage-based product candidates are developed utilizing our proprietary research and development platform named BOLT. The BOLT platform is unique, employing cutting edge methodologies and capabilities across disciplines including computational biology, microbiology, synthetic engineering of phage and their production bacterial hosts, bioanalytical assay development, manufacturing and formulation, to allow agile and efficient development of natural or engineered phage combinations, or cocktails. The cocktail contains phage with complementary features and is optimized for multiple characteristics such as broad target host range, ability to prevent resistance, biofilm penetration, stability and ease of manufacturing.

Our goal is to develop multiple products based on the ability of phage to precisely target harmful bacteria and on our ability to screen, identify and combine different phage, both naturally occurring and created using synthetic engineering, to develop these treatments.

On March 6, 2024, we entered into a merger agreement with APT and certain other parties, as a result of which APT became our wholly-owned subsidiary, effective as of March 15, 2024, or the Acquisition. The Acquisition was structured as a stock-for-stock transaction whereby all outstanding equity interests of APT were exchanged in a merger for an aggregate of 9,164,968 shares of BiomX common stock, 40,470 shares of Series X Preferred Stock, or Redeemable Convertible Preferred Shares, convertible upon stockholder approval into 40,470,000 shares of BiomX common stock, and warrants, or the Merger Warrants, exercisable for 2,166,497 shares of BiomX common stock. Upon the consummation of the Acquisition, a successor-in-interest of APT became a wholly-owned subsidiary of BiomX. The Merger Warrants will be exercisable at any time after the date of the receipt of BiomX stockholder approval of their exercise at an exercise price of $5.00 per share and will expire on January 28, 2027.

Concurrently with the consummation of the Acquisition, we entered into a securities purchase agreement or the March 2024 PIPE with certain investors, pursuant to which such investors purchased an aggregate of 216,417 Redeemable Convertible Preferred Shares and warrants to purchase up to an aggregate of 108,208,500 shares of Common Stock, or the Private Placement Warrants, for aggregate gross proceeds of approximately $50 million.

Immediately following the Acquisition, and without taking into account the Redeemable Convertible Preferred Shares issued in the March 2024 PIPE, and assuming conversion of all of the Redeemable Convertible Preferred Shares into Common Stock, our stockholders (including holders of the Pre-Funded Warrants, as defined below) prior to the Acquisition owned approximately 55% of the share capital of the Company and APT’s stockholders prior to the Acquisition owned approximately 45% of the share capital of the Company.

Clinical and Pre-Clinical Developments

Ongoing Programs

Cystic Fibrosis

BX004 is our therapeutic phage product candidate under development for chronic pulmonary infections caused by Pseudomonas aeruginosa, or P. aeruginosa, a main contributor to morbidity and mortality in patients with CF. Enhanced resistance to antibiotics develops, particularly in CF patients, due to extensive drug use consisting of prolonged and repeated broad-spectrum antibiotic courses often beginning in childhood, and leading to the appearance of multidrug-resistant strains. In preclinical in vitro studies, BX004 was shown to be active against antibiotic resistant strains of P. aeruginosa and demonstrated the ability to penetrate biofilm, an assemblage of surface-associated microbial cells enclosed in an extracellular polymeric substance and one of the leading causes for antibiotic resistance.

The Phase 1b/2a trial in CF patients with chronic respiratory infections caused by P. aeruginosa. is comprised of two parts. The study design is based on recommendations from the Cystic Fibrosis Therapeutic Development Network.

In February 2023, we announced positive results from Part 1 of the Phase 1b/2a trial evaluating BX004. Part 1 evaluated the safety, tolerability, pharmacokinetics, and microbiologic activity of BX004 over a 7-day ascending treatment period in nine CF patients (7 on BX004, 2 on placebo) with chronic P. aeruginosa pulmonary infection in a single ascending dose and multiple dose design.

Results from Part 1 of the Phase 1b/2a trial included the following findings: No safety events related to treatment with BX004 occurred; Mean P. aeruginosa colony forming units, at Day 15 (compared to baseline): -1.42 log (BX004) vs. -0.28 log (placebo). This reduction was seen on top of standard of care inhaled antibiotics; Phage were detected in all patients treated with BX004 during the dosing period, including in several patients up to Day 15 (one week after end of therapy); no phage were detected in patients receiving placebo; there was no evidence of treatment-related resistance to BX004 during or after treatment , compared to placebo; and as expected due to the short duration of treatment, there was no detectable effect on % predicted forced expiratory volume in 1 second, or FEV1.

In November 2023, we announced positive topline results from Part 2 of the Phase 1b/2a trial evaluating BX004. The objectives of Part 2 of the Phase 1b/2a trial were to evaluate the safety and tolerability of BX004 in a larger number of CF patients dosed for a longer treatment duration than Part 1 of the study. In Part 2, 34 CF patients were randomized in a 2:1 ratio with 23 CF patients receiving BX004 and 11 patients receiving placebo via nebulization twice daily for 10 days.

Highlights from the Part 2 data of the Phase 1b/2a study included:

●

Study drug was safe and well-tolerated, with no related SAEs (serious adverse events) or related APEs (acute pulmonary exacerbations) to study drug.

●

In the BX004 arm, 3 out of 21 (14.3%) patients converted to sputum culture negative for P. aeruginosa after 10 days of treatment (including 2 patients after 4 days) compared to 0 out of 10 (0%) in the placebo arm (In patients that had quantitative colony-forming unit levels at study baseline).

●

BX004 vs. placebo showed a clinical effect in a predefined subgroup of patients with reduced baseline lung function (FEV1<70%). Difference between groups at Day 17: relative FEV1 improvement of 5.67% (change from baseline +1.46 vs. -4.21) and +8.87 points in CFQR respiratory symptom scale (change from baseline +2.52 vs. -6.35).

In August 2023, the FDA granted BX004 Fast Track designation for the treatment of chronic respiratory infections caused by P. aeruginosa bacterial strains in patients with CF. In addition, in December 2023, BX004 received orphan drug designation from the FDA.

BiomX expects to initiate a randomized, double blind, placebo-controlled, multi-center Phase 2b study in CF patients with chronic P. aeruginosa pulmonary infections in the fourth quarter of 2024. The study is designed to enroll approximately 60 patients randomized at a 2:1 ratio to BX004 or placebo. Treatment is expected to be administered via inhalation twice daily for a duration of 8 weeks. The study is designed to monitor the safety and tolerability of BX004 and is designed to demonstrate improvement in microbiological reduction of P. aeruginosa burden and evaluation of effects on clinical parameters such as lung function measured by FEV1 and patient reported outcomes. Study results are expected in the third quarter 2025.

BX211 – Treatment of Diabetic Foot Osteomyelitis, or DFO

BX211 is a personalized phage therapy for the treatment of DFO associated with Staphylococcus aureus, or S. aureus, a bacterium associated with the development and exacerbation of inflammation in atopic dermatitis. The personalized phage treatment tailors a specific phage selected from a proprietary phage-bank according to the specific strain of S. aureus biopsied and isolated from each patient. DFO is a bacterial infection of the bone that usually develops from an infected foot ulcer and is a leading cause of amputation in patients with diabetes. We believe that scientific literature demonstrating the potential benefit in treating osteomyelitis using phage in animal models as well as numerous successful compassionate cases using phage therapy to treat DFO patient support our approach of using phage therapy to treat DFO.

The ongoing randomized, double-blind, placebo-controlled, multi-center phase 2 study investigating the safety, tolerability, and efficacy of BX211 for subjects with DFO associated with S. aureus is expected to enroll approximately 45 subjects randomized at a 2:1 ratio to BX211 or placebo. BX211 or placebo is designed to be administered weekly, by topical and intravenous, or IV route at week 1 and by the topical route only at each of weeks 2-12. Over the 12-week treatment period, all subjects are expected to continue to be treated in accordance with standard of care which will include antibiotic treatment as appropriate. A first readout of study topline results is expected at week 13 evaluating healing of the wound associated with osteomyelitis, followed by a second readout at week 52 evaluating amputation rates and resolution of osteomyelitis based on X-ray, clinical assessments, and established biomarkers (Erythrocyte Sedimentation Rate, or ESR, and C-Reactive Protein, or CRP). These readouts are expected in the first quarter of 2025 and the first quarter of 2026, respectively.

National Institutes of Health, or NIH, study in Cystic Fibrosis

We are supporting a study conducted by the NIH and The Antibacterial Resistance Leadership Group targeting P. Aeruginosa infections in CF patients under FDA emergency Investigational New Drug allowance. The Phase 1b/2, multi-centered, randomized, double-blind, placebo-controlled trial is assessing the safety and microbiological activity of a single IV dose of bacteriophage therapy in cystic fibrosis subjects colonized with P. aeruginosa.

Programs on hold

BX005 – Treatment of Atopic Dermatitis

BX005 is our topical phage product candidate targeting S. aureus. S. aureus is more abundant on the skin of atopic dermatitis patients than on the skin of healthy individuals and on lesional skin than non-lesional skin. It also increases in abundance, becoming the dominant bacteria, when patients experience flares. By reducing the load of S. aureus, BX005 is designed to shift the skin microbiome composition to its ‘pre-flare’ state and potentially provide a clinical benefit. In preclinical in vitro studies, BX005 was shown to eradicate over 90% of strains, including antibiotic resistant strains, from a panel of S. aureus strains (120 strains isolated from skin of subjects from the U.S. and Europe). On April 8, 2022, the FDA approved the Company’s IND application for BX005.

As of the date of this Quarterly Report, we have paused development efforts for BX005 due to prioritizing resources towards our CF and DFO programs, and we cannot provide guidance on resuming its development.

Prosthetic Joint Infections, or PJI

Our personalized phage therapy for treating PJI targets multiple bacterial organisms such as Staphylococcus aureus, Staphylococcus epidermidis and Enterococcus faecium. This treatment was granted Orphan-drug designation by the FDA in July 2020. As of the date of this Quarterly Report, we have paused development efforts of this program due to prioritizing resources towards our CF and DFO programs, and we cannot provide guidance on resuming its development.

Consolidated Results of Operations

Comparison of the Three Months Ended March 31, 2024 and 2023

The following table summarizes our consolidated results of operations for the three months ended March 31, 2024 and 2023:

	Three Months ended March 31,
	2024			2023
	USD in thousands
Research and development (“R&D”) expenses, net		4,105			4,564
General and administrative expenses		2,680			1,644
Operating loss		6,785			6,208
Other income		(88	)		(91	)
Interest expenses		850			565
Loss from change in fair value of Private Placement Warrants		8,010			-
Finance expense (income), net		1,765			(327	)
Loss before tax		17,322			6,355
Tax expenses		5			6
Net loss		17,327			6,361
Basic and diluted loss per share of Common Stock		0.28			0.20
Weighted average number of shares of Common Stock outstanding, basic and diluted		62,292,277			32,125,227

R&D expenses, net (net of grants received from the Israel Innovation Authority (“IIA”), and consideration from research collaborations) were $4.1 million for the three months ended March 31, 2024, compared to $4.6 million for the three months ended March 31, 2023. The decrease of $0.5 million, or 11%, is primarily due to the end of the enrollment and follow-up period of patients in the clinical trial of our CF product candidate, BX004, which resulted in lower expenses. Such decrease was partly offset by lower IIA grants and by R&D expenses that were incurred in APT after the Acquisition. The Company did not record any IIA grants during the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company recorded $0.3 million of IIA grants.

General and administrative expenses were $2.7 million for the three months ended March 31, 2024, compared to $1.6 million for the three months ended March 31, 2023. The increase of $1.1 million, or 69%, is primarily due to issuance costs incurred under the Acquisition and the March 2024 PIPE agreement.

There was no material change to other income that impacted earnings for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Interest expenses were $0.9 million for the three months ended March 31, 2024, compared to $0.6 million for the three months ended March 31, 2023. The increase of $0.3 million, or 50%, is due to the acceleration of the effective interest expenses which resulted from the prepayment of the loan under the Loan and Security Agreement, or the Hercules Loan Agreement, with Hercules Capital, Inc., or Hercules.

Loss from change in fair value of Private Placement Warrants consisted of the changes in the Private Placement Warrants fair value issued under the March 2024 PIPE as a result of revaluation.

Finance expense, net was $1.8 million for the three months ended March 31, 2024, compared to Finance income, net of $0.3 million for the three months ended March 31, 2023. The increase of $2.1 million resulted mainly from the Private Placement Warrants transaction costs.

Basic and diluted loss per share of Common Stock was $0.28 for the three months ended March 31, 2024, compared to $0.20 for the three months ended March 31, 2023. The increase in loss per share of $0.08, or 40%, is due to an increase in our operating loss, partially offset by the increase in outstanding shares resulting from the Acquisition.

Liquidity and Capital Resources

We believe our cash and cash equivalents and short-term deposits on hand will be sufficient to meet our working capital and capital expenditure requirements for at least one year from the date of this Quarterly Report. We currently plan to continue to focus primarily on development of BX004, our product candidate for CF and BX211, our product candidate for DFO. Although we recently completed the 2024 March PIPE, in the future we will likely require or desire additional funds to support our operating expenses and capital requirements. In addition, the conversion of the Series X Non-Voting Convertible Preferred Shares (as described below) that was issued in connection with the March 2024 PIPE and the Acquisition is subject to stockholder approval and there is no assurance that such approval will be received. If such approval is not received, the Company may be required to redeem the Redeemable Convertible Preferred Shares at its fair value. Accordingly, we are exploring and expect to further explore, raising such additional funds through public or private equity, debt financings, loans, governmental or other grants or collaborative agreements or from other sources, as well as under the 2023 ATM Agreement discussed below. If we are unable to obtain adequate financing or financing on terms satisfactory to us, when we require it, our ability to continue to grow or support our business and to respond to business challenges could be significantly limited. If there are increases in operating costs for facilities expansion, research and development and clinical activity, we will need to use mitigating actions such as to seek additional financing or postpone expenses that are not based on firm commitments. If certain disruptions due to, for instance, the Israel-Hamas War, or Israeli political instability persists and deepens, we could experience an inability to access additional capital, which could in the future negatively affect our capacity to support our operating expenses and capital requirements. As a result of these factors, management believes that there is substantial doubt as to the Company’s ability to continue as a going concern.

Cash Flows

The following table summarizes our sources and uses of cash for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
	2024			2023
	USD in thousands
Net cash used in operating activities		(11,356	)		(5,045	)
Net cash provided by (used in) investing activities		663			1,990
Net cash provided by financing activities		38,975			1,050
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(31	)		13
Net increase (decrease) in cash and cash equivalents		28,251			(1,992	)

Operating Activities

Net cash used in operating activities for the three months ended March 31, 2024 was $11.4 million, primarily due to a net loss of $17.3 million, mostly due to our R&D, general and administrative expenses, and due to changes in our operating assets and liabilities of $2.7 million. This was partly offset by non-cash charges of $8.7 million. Non-cash charges for the three months ended March 31, 2024 consisted primarily of loss from change in fair value of Private Placement Warrants of $8.0 million and Private Placement Warrants issuance cost in amount of $0.7 million. Net changes in our operating assets and liabilities consisted primarily of a decrease in trade accounts payable of $1.8 million and net change in operating lease of $1.4 million. Such decrease was partly offset by the change in other current and non-current assets of $0.6 million.

Net cash used in operating activities for the three months ended March 31, 2023 was $5.0 million, primarily due to a net loss of $6.4 million, mostly due to our R&D and general and administrative expenses, and due to changes in our operating assets and liabilities of $1.0 million, offset by non-cash charges of $0.3 million. Non-cash charges for the three months ended March 31, 2023 consisted primarily of depreciation and amortization expenses of $0.2 million and stock-based compensation expenses in the amount of $0.2 million. Net changes in our operating assets and liabilities consisted primarily of an increase in trade accounts payable of $0.4 million and in other accounts payable in the amount of $0.8 million, partially offset by an increase in other current assets in the amount of $0.2 million.

Investing Activities

During the three months ended March 31, 2024, net cash provided by investing activities was $0.7 million, consisting of cash and restricted cash acquired from the Acquisition.

During the three months ended March 31, 2023, net cash provided by investing activities was $2.0 million, mainly consisting of proceeds from short-term deposits of $2.0 million.

We have invested, and plan to continue to invest, our existing cash in short-term investments in accordance with our investment policy. These investments may include money market funds and investment securities consisting of U.S. Treasury notes, and high quality, marketable debt instruments of corporations and government sponsored enterprises. We use foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, we record gains or losses that offset the revaluation of the balance sheet items under financial income, net in our condensed consolidated statements of operations. As of March 31, 2024, we had outstanding foreign exchange contracts for the exchange of USD to NIS in the amount of approximately $1.7 million with a fair value asset of $0.1 million. As of March 31, 2023, we had outstanding foreign exchange contracts for the exchange of USD to NIS in the amount of approximately $4.6 million with a fair value of $0.1 million liability.

Financing Activities

During the three months ended March 31, 2024, net cash provided by financing activities was $39.0 million, mainly consisting of the issuance of Redeemable Convertible Preferred Shares and the Private Placement Warrants in the March 2024 PIPE in the amount of $21.3 million and $28.7 million, respectively. This was partially offset by the prepayment of the long-term debt in amount of $10.7 million.

During the three months ended March 31, 2023, net cash provided by financing activities was $1.1 million, mainly consisting of the issuance of Common Stock in the first closing of the PIPE of $1.5 million, partially offset by the repayment to Hercules of long-term debt of $0.4 million.

Under the Hercules Loan Agreement, Hercules provided the Company with access to a term loan with an aggregate principal amount of up to $30 million, or the Term Loan Facility, available in three tranches, subject to certain terms and conditions. The first tranche of $15 million was advanced to us on the date the Loan Agreement was executed. The conditions for the second and third tranches were not reached and have expired. We were required to make interest only payments through March 1, 2023, and started to then repay the principal balance and interest in equal monthly installments. Interest on the Hercules Loan accrues at a per annum rate equal to the greater of (i) the Prime Rate as reported in The Wall Street Journal plus 5.70% and (ii) 8.95%. On March 19, 2024, the Company prepaid all of the term loan under the Term Loan Facility in a total of $10,428,000. The prepayment included an end of term charge of $983,000 and accrued interest of $69,000. The Company received a waiver regarding the prepayment charge that should have been 1% out of the prepaid principal amount that equaled $94,000.

On December 7, 2023, we filed a shelf registration statement on Form S-3, which was declared effective by the SEC on January 2, 2024. In addition, on December 7, 2023, we entered into an At the Market Offering Agreement, or the 2023 ATM Agreement, with H.C. Wainwright & Co., LLC, or Wainwright, with Wainwright, as manager, pursuant to which we may issue and sell shares of our Common Stock having an aggregate offering price of up to $7.5 million from time to time through Wainwright. We are not obligated to make any sales of Common Stock under the 2023 ATM Agreement. From January 1, 2024 through May 17, 2024, we issued 75,179 shares of Common Stock pursuant to the 2023 ATM Agreement for aggregate gross proceeds of $19 thousand.

On March 15, 2024, concurrently with the consummation of the Acquisition, we consummated the March 2024 PIPE with existing and new investors, resulting in aggregate gross proceeds of approximately $50 million, in which the investors purchased (i) an aggregate of 216,417 Redeemable Convertible Preferred Shares, convertible upon stockholder approval into an aggregate of up to 216,417,000 shares of BiomX common stock, and (ii) the Private Placement Warrants, to purchase up to an aggregate of 108,208,500 shares of BiomX common stock, at a combined purchase price of $231.10 per share of Series X Preferred Stock and an accompanying Private Placement Warrant to purchase 500 shares of BiomX common stock. The Private Placement Warrants will be exercisable any time after the date of the receipt of BiomX stockholder approval, at an exercise price of $0.2311 per share, and will expire on the 24-month anniversary of the initial exercisability date.

Outlook

We have accumulated a deficit of $180.3 million since our inception. To date, we have not generated revenue from our operations and we do not expect to generate any significant revenues from sales of products in the next twelve months. Our cash needs may increase in the foreseeable future. We expect to generate revenues, from the sale of licenses to use our technology or products, but in the short and medium terms any amounts generated are unlikely to exceed our costs of operations. According to our estimates and based on our current operating plans, our liquidity resources as of March 31, 2024, which consisted primarily of cash, cash equivalents, short-term deposits and restricted cash of approximately $44.1 million will be sufficient to fund our operations for at least one year from the date of this Quarterly Report.

Consistent with our ongoing R&D activities, we expect to continue to incur additional losses in the foreseeable future. To the extent we require funds above our existing liquidity resources in the medium and long term, we plan to fund our operations, as well as other development activities relating to additional product candidates, through future issuances of public or private equity, including under our 2023 ATM Agreement, issuance of debt securities, loans, and possibly additional grants from the IIA or other government or non-profit institutions. Our ability to raise additional capital in the equity and debt markets is dependent on a number of factors including, but not limited to, the market demand for our securities, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that we would be able to raise such additional capital at a price or on terms that are favorable to us.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a smaller reporting company, we are not required to make disclosures under this Item.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, conducted an evaluation, as of the end of the period covered by this Quarterly Report, of the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of March 31, 2024.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting, as that term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during the quarter ended March 31, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 6. Exhibits

No.		Description of Exhibit
3.1		Composite Copy of Amended and Restated Certificate of Incorporation of the Company, effective on December 11, 2018, as amended to date. (Incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q filed by the Company on November 9, 2022)

3.2		Amended and Restated Bylaws of the Company, as amended on April 11, 2024 (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed by the Company on April 11, 2024)

10.1		At the Market Offering Agreement, dated December 7, 2023, between the Company and H.C. Wainwright & Co., LLC (Incorporated by reference to Exhibit 1.2 of the Company’s Registration Statement on Form S-3 filed with the Securities and Exchange Commission on December 7, 2023)

10.2*		Form of Indemnification Agreement

31.1*		Certification of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a)

31.2*		Certification of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d-14(a)

32**		Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350

101.INS*		Inline XBRL Instance Document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document.
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*	Filed herewith.

**	Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BIOMX INC.

Date: May 20, 2024	By:	/s/ Jonathan Solomon
	Name:	Jonathan Solomon
	Title:	Chief Executive Officer
		(Principal Executive Officer)

Date: May 20, 2024	By:	/s/ Avraham Gabay
	Name:	Avraham Gabay
	Title:	Interim Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

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Exhibit 10.2

BIOMX INC.

Indemnification Agreement

This Indemnification Agreement (this “Agreement”) is made as of, by and between BiomX Inc., a Delaware corporation (the “Company”), and _________________________ (“Indemnitee”).

RECITALS

The Company and Indemnitee recognize the increasing difficulty in obtaining liability insurance for directors, officers and key employees, the significant increases in the cost of such insurance and the general reductions in the coverage of such insurance. The Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors, officers and key employees to expensive litigation risks at the same time as the availability and coverage of liability insurance has been severely limited. Indemnitee does not regard the current protection available as adequate under the present circumstances, and Indemnitee may not be willing to continue to serve in Indemnitee’s current capacity with the Company without additional protection. The Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, and to indemnify its directors, officers and key employees so as to provide them with the maximum protection permitted by law.

AGREEMENT

In consideration of the mutual promises made in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Indemnitee hereby agree as follows:

1. Indemnification.

(a) Third-Party Proceedings. To the fullest extent permitted by applicable law, the Company shall indemnify Indemnitee, if Indemnitee was, is or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding (other than a Proceeding by or in the right of the Company to procure a judgment in the Company’s favor), against all Expenses, judgments, fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with such Proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful.

(b) Proceedings By or in the Right of the Company. To the fullest extent permitted by applicable law, the Company shall indemnify Indemnitee, if Indemnitee was, is or is threatened to be made a party to or a participant (as a witness or otherwise) in any Proceeding by or in the right of the Company to procure a judgment in the Company’s favor, against all Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudicated by court order or judgment to be liable to the Company unless and only to the extent that the Court of Chancery or the court in which such Proceeding is or was pending shall determine upon application that, in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper.

(c) Success on the Merits. To the fullest extent permitted by applicable law and to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding referred to in Section 1(a) or Section 1(b) hereof or the defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection therewith. Without limiting the generality of the foregoing, if Indemnitee is successful on the merits or otherwise as to one or more but less than all claims, issues or matters in a Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with such successfully resolved claims, issues or matters to the fullest extent permitted by applicable law. If any Proceeding is disposed of on the merits or otherwise (including a disposition without prejudice), without (i) the disposition being adverse to Indemnitee, (ii) an adjudication that Indemnitee was liable to the Company, (iii) a plea of guilty by Indemnitee, (iv) an adjudication that Indemnitee did not act in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and (v) with respect to any criminal Proceeding, an adjudication that Indemnitee had reasonable cause to believe Indemnitee’s conduct was unlawful, Indemnitee shall be considered for the purposes hereof to have been wholly successful with respect thereto.

(d) Witness Expenses. To the fullest extent permitted by applicable law and to the extent that Indemnitee is a witness or otherwise asked to participate in any Proceeding to which Indemnitee is not a party, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding.

2. Indemnification Procedure.

(a) Advancement of Expenses. To the fullest extent permitted by applicable law, the Company shall advance all Expenses actually and reasonably incurred by Indemnitee in connection with a Proceeding within thirty (30) days after receipt by the Company of a statement requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Such advances shall be unsecured and interest free and shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. Indemnitee shall be entitled to continue to receive advancement of Expenses pursuant to this Section 2(a) unless and until the matter of Indemnitee’s entitlement to indemnification hereunder has been finally adjudicated by court order or judgment from which no further right of appeal exists. Indemnitee hereby undertakes to repay such amounts advanced only if, and to the extent that, it ultimately is determined that Indemnitee is not entitled to be indemnified by the Company under the other provisions of this Agreement. Indemnitee shall qualify for advances upon the execution and delivery of this Agreement, which shall constitute the requisite undertaking with respect to repayment of advances made hereunder and no other form of undertaking shall be required to qualify for advances made hereunder other than the execution of this Agreement.

(b) Notice and Cooperation by Indemnitee. Indemnitee shall promptly notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter for which indemnification will or could be sought under this Agreement. Such notice to the Company shall include a description of the nature of, and facts underlying, the Proceeding, shall be directed to the Chief Executive Officer of the Company and shall be given in accordance with the provisions of Section 13(e) below. In addition, Indemnitee shall give the Company such additional information and cooperation as the Company may reasonably request. Indemnitee’s failure to so notify, provide information and otherwise cooperate with the Company shall not relieve the Company of any obligation that it may have to Indemnitee under this Agreement, except to the extent that the Company is adversely affected by such failure.

(i) Final Disposition. Notwithstanding any other provision in this Agreement, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

(ii) Determination and Payment. Subject to the foregoing, promptly after receipt of a statement requesting payment with respect to the indemnification rights set forth in Section 1 hereof, to the extent required by applicable law, the Company shall take the steps necessary to authorize such payment in the manner set forth in Section 145 of the Delaware General Corporation Law. The Company shall pay any claims made under this Agreement, under any statute, or under any provision of the Company’s Certificate of Incorporation or Bylaws providing for indemnification or advancement of Expenses, within thirty (30) days after a written request for payment thereof has first been received by the Company, and if such claim is not paid in full within such thirty (30) day-period, Indemnitee may, but need not, at any time thereafter bring an action against the Company in the Delaware Court of Chancery to recover the unpaid amount of the claim and, subject to Section 12 hereof, Indemnitee shall also be entitled to be paid for all Expenses actually and reasonably incurred by Indemnitee in connection with bringing such action. It shall be a defense to any such action (other than an action brought to enforce a claim for advancement of Expenses under Section 2(a) hereof) that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed. In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement and the Company shall have the burden of proof to overcome that presumption with clear and convincing evidence to the contrary. The termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, or, in the case of a criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful. In addition, it is the parties’ intention that if the Company contests Indemnitee’s right to indemnification, the question of Indemnitee’s right to indemnification shall be for the court to decide, and neither the failure of the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct required by applicable law, nor an actual determination by the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) that Indemnitee has not met such applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct. If any requested determination with respect to entitlement to indemnification hereunder has not been made within ninety (90) days after the final disposition of the Proceeding, the requisite determination that Indemnitee is entitled to indemnification shall be deemed to have been made.

(d) Payment Directions. To the extent payments are required to be made hereunder, the Company shall, in accordance with Indemnitee’s request (but without duplication), (i) pay such Expenses on behalf of Indemnitee, (ii) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (iii) reimburse Indemnitee for such Expenses.

(e) Notice to Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 2(b) hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

(f) Defense of Claim and Selection of Counsel. In the event the Company shall be obligated under Section 2(a) hereof to advance Expenses with respect to any Proceeding, the Company, if appropriate, shall be entitled to assume the defense of such Proceeding, with counsel reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of its election so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same Proceeding, provided that (i) Indemnitee shall have the right to employ counsel in any such Proceeding at Indemnitee’s expense; and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense or (C) the Company shall not, in fact, have employed counsel to assume the defense of such Proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company. In addition, if there exists a potential, but not an actual, conflict of interest between the Company and Indemnitee, the actual and reasonable legal fees and expenses incurred by Indemnitee for separate counsel retained by Indemnitee to monitor the Proceeding (so that such counsel may assume Indemnitee’s defense if the conflict of interest between the Company and Indemnitee becomes an actual conflict of interest) shall be deemed to be Expenses that are subject to indemnification hereunder. The existence of an actual or potential conflict of interest, and whether such conflict may be waived, shall be determined pursuant to the rules of attorney professional conduct and applicable law. The Company shall not be required to obtain the consent of Indemnitee for the settlement of any Proceeding the Company has undertaken to defend if the Company assumes full and sole responsibility for each such settlement; provided, however, that the Company shall be required to obtain Indemnitee’s prior written approval, which shall not be unreasonably withheld, before entering into any settlement which (1) does not grant Indemnitee a complete release of liability, (2) would impose any penalty or limitation on Indemnitee, or (3) would admit any liability or misconduct by Indemnitee.

3. Additional Indemnification Rights.

(a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to indemnify Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s Certificate of Incorporation, the Company’s Bylaws or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute, or rule which expands the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such changes shall be deemed to be within the purview of Indemnitee’s rights and the Company’s obligations under this Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such changes, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement shall have no effect on this Agreement or the parties’ rights and obligations hereunder.

(b) Non-exclusivity. The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s Certificate of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested members of the Company’s Board of Directors, the Delaware General Corporation Law, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such office.

(c) Interest on Unpaid Amounts. If any payment to be made by the Company to Indemnitee hereunder is delayed by more than ninety (90) days from the date the duly prepared request for such payment is received by the Company, interest shall be paid by the Company to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies or is obligated to indemnify for the period commencing with the date on which Indemnitee actually incurs such Expense or pays such judgment, fine or amount in settlement and ending with the date on which such payment is made to Indemnitee by the Company.

(d) Third-Party Indemnification. The Company hereby acknowledges that Indemnitee has or may from time to time obtain certain rights to indemnification, advancement of expenses and/or insurance provided by one or more third parties (collectively, the “Third-Party Indemnitors”). The Company hereby agrees that it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Third-Party Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary), and that the Company will not assert that the Indemnitee must seek expense advancement or reimbursement, or indemnification, from any Third-Party Indemnitor before the Company must perform its expense advancement and reimbursement, and indemnification obligations, under this Agreement. No advancement or payment by the Third-Party Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing. The Third-Party Indemnitors shall be subrogated to the extent of such advancement or payment to all of the rights of recovery which Indemnitee would have had against the Company if the Third-Party Indemnitors had not advanced or paid any amount to or on behalf of Indemnitee. If for any reason a court of competent jurisdiction determines that the Third-Party Indemnitors are not entitled to the subrogation rights described in the preceding sentence, the Third-Party Indemnitors shall have a right of contribution by the Company to the Third-Party Indemnitors with respect to any advance or payment by the Third-Party Indemnitors to or on behalf of the Indemnitee.

4. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the Expenses, judgments, fines or amounts paid in settlement, actually and reasonably incurred in connection with a Proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such Expenses, judgments, fines and amounts paid in settlement to which Indemnitee is entitled.

5. Director and Officer Liability Insurance.

(a) D&O Policy. The Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the directors and officers of the Company with coverage for losses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage. In all policies of director and officer liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, if Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or director but is a key employee. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a parent or subsidiary of the Company.

(b) Tail Coverage. In the event of a Change of Control or the Company’s becoming insolvent (including being placed into receivership or entering the federal bankruptcy process and the like), the Company shall maintain in force any and all insurance policies then maintained by the Company in providing insurance (directors’ and officers’ liability, fiduciary, employment practices or otherwise) in respect of Indemnitee, for a period of seven years thereafter.

6. Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms.

7. Exclusions. Any other provision of this Agreement to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

(a) Claims Initiated by Indemnitee. To indemnify or advance Expenses to Indemnitee with respect to Proceedings initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to Proceedings brought to establish, enforce or interpret a right to indemnification under this Agreement or any other statute or law or otherwise as required under Section 145 of the Delaware General Corporation Law, but such indemnification or advancement of Expenses may be provided by the Company in specific cases if the Board of Directors finds it to be appropriate; provided, however, that the exclusion set forth in the first clause of this subsection shall not be deemed to apply to any investigation initiated or brought by Indemnitee to the extent reasonably necessary or advisable in support of Indemnitee’s defense of a Proceeding to which Indemnitee was, is or is threatened to be made, a party;

(b) Lack of Good Faith. To indemnify Indemnitee for any Expenses incurred by Indemnitee with respect to any Proceeding instituted by Indemnitee to establish, enforce or interpret a right to indemnification under this Agreement or any other statute or law or otherwise as required under Section 145 of the Delaware General Corporation Law, if a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous;

(c) Insured Claims. To indemnify Indemnitee for Expenses to the extent such Expenses have been paid directly to Indemnitee by an insurance carrier under an insurance policy maintained by the Company; or

(d) Certain Exchange Act Claims. To indemnify Indemnitee in connection with any claim made against Indemnitee for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or any similar successor statute or any similar provisions of state statutory law or common law, or (ii) any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) or Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act); provided, however, that to the fullest extent permitted by applicable law and to the extent Indemnitee is successful on the merits or otherwise with respect to any such Proceeding, the Expenses actually and reasonably incurred by Indemnitee in connection with any such Proceeding shall be deemed to be Expenses that are subject to indemnification hereunder.

8. Contribution Claims.

(a) If the indemnification provided in Section 1 hereof is unavailable in whole or in part and may not be paid to Indemnitee for any reason other than those set forth in Section 7 hereof, then in respect to any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), to the fullest extent permitted by applicable law, the Company, in lieu of indemnifying Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses, judgments, fines or amounts paid in settlement, in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

(b) With respect to a Proceeding brought against directors, officers, employees or agents of the Company (other than Indemnitee), to the fullest extent permitted by applicable law, the Company shall indemnify Indemnitee from any claims for contribution that may be brought by any such directors, officers, employees or agents of the Company (other than Indemnitee) who may be jointly liable with Indemnitee, to the same extent Indemnitee would have been entitled to such indemnification under this Agreement if such Proceeding had been brought against Indemnitee.

9. No Imputation. The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Company or the Company itself shall not be imputed to Indemnitee for purposes of determining any rights under this Agreement.

10. Determination of Good Faith. For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or the Board of Directors of the Enterprise or any counsel selected by any committee of the Board of Directors of the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser, investment banker, compensation consultant, or other expert selected with reasonable care by the Enterprise or the Board of Directors of the Enterprise or any committee thereof. The provisions of this Section 10 shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct. Whether or not the foregoing provisions of this Section are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company.

11. Defined Terms and Phrases. For purposes of this Agreement, the following terms shall have the following meanings:

(a) “Beneficial Owner” and “Beneficial Ownership” shall have the meanings set forth in Rule 13d-3 promulgated under the Exchange Act as in effect on the date hereof.

(b) “Change of Control” shall be deemed to occur upon the earliest of any of the following events:

(i) Acquisition of Stock by Third Party. Any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors, unless (1) the change in the relative Beneficial Ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors, or (2) such acquisition was approved in advance by the Continuing Directors and such acquisition would not constitute a Change of Control under part (iii) of this definition.

(ii) Change in Board of Directors. Individuals who, as of the date of this Agreement, constitute the Company’s Board of Directors (the “Board”), and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two thirds of the directors then still in office who were directors on the date of this Agreement (collectively, the “Continuing Directors”), cease for any reason to constitute at least a majority of the members of the Board.

(iii) Corporate Transaction. The effective date of a reorganization, merger, or consolidation of the Company (a “Business Combination”), in each case, unless, following such Business Combination: (1) all or substantially all of the individuals and entities who were the Beneficial Owners of securities entitled to vote generally in the election of directors immediately prior to such Business Combination beneficially own, directly or indirectly, more than 51% of the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors resulting from such Business Combination (including a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the securities entitled to vote generally in the election of directors and with the power to elect at least a majority of the Board or other governing body of the surviving entity; (2) no Person (excluding any corporation resulting from such Business Combination) is the Beneficial Owner, directly or indirectly, of 15% or more of the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of such corporation except to the extent that such ownership existed prior to the Business Combination; and (3) at least a majority of the Board of Directors of the corporation resulting from such Business Combination were Continuing Directors at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination.

(iv) Liquidation. The approval by the Company’s stockholders of a complete liquidation of the Company or an agreement or series of agreements for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than factoring the Company’s current receivables or escrows due (or, if such approval is not required, the decision by the Board to proceed with such a liquidation, sale or disposition in one transaction or a series of related transactions).

(v) Other Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item or any similar schedule or form) promulgated under the Exchange Act whether or not the Company is then subject to such reporting requirement.

(c) “Company” shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents, so that if Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of any other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

(d) “Enterprise” means the Company and any other enterprise that Indemnitee was or is serving at the request of the Company as a director, officer, partner (general, limited or otherwise), member (managing or otherwise), trustee, fiduciary, employee or agent.

(e) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(f) “Expenses” shall include all direct and indirect costs, fees and expenses of any type or nature whatsoever, including all attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private investigators and professional advisors, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payment under this Agreement (including taxes that may be imposed upon the actual or deemed receipt of payments under this Agreement with respect to the imposition of federal, state, local or foreign taxes), fax transmission charges, secretarial services and all other disbursements, obligations or expenses in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, settlement or appeal of, or otherwise participating in a Proceeding. Expenses also shall include any of the forgoing expenses incurred in connection with any appeal resulting from any Proceeding, including the principal, premium, security for, and other costs relating to any costs bond, supersedes bond, or other appeal bond or its equivalent. Expenses also shall include any interest, assessment or other charges imposed thereon and costs incurred in preparing statements in support of payment requests hereunder. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

(g) “Person” shall have the meaning as set forth in Section 13(d) and 14(d) of the Exchange Act as in effect on the date hereof; provided, however, that “Person” shall exclude: (i) the Company; (ii) any direct or indirect majority owned subsidiaries of the Company; (iii) any employee benefit plan of the Company or any direct or indirect majority owned subsidiaries of the Company or of any corporation owned, directly or indirectly, by the Company’s stockholders in substantially the same proportions as their ownership of stock of the Company (an “Employee Benefit Plan”); and (iv) any trustee or other fiduciary holding securities under an Employee Benefit Plan.

(h) “Proceeding” shall include any actual, threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by a third party, a government agency, the Company or its Board of Directors or a committee thereof, whether in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative, legislative or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is, will or might be involved as a party, potential party, non-party witness or otherwise by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, by reason of any action (or failure to act) taken by Indemnitee or of any action (or failure to act) on Indemnitee’s part while acting as a director, officer, employee or agent of the Company, or by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, partner (general, limited or otherwise), member (managing or otherwise), trustee, fiduciary, employee or agent of any other enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided under this Agreement.

(i) In addition, references to “other enterprise” shall include another corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or any other enterprise; references to “fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by Indemnitee with respect to an employee benefit plan, its participants, or beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement; references to “include” or “including” shall mean include or including, without limitation; and references to Sections, paragraphs or clauses are to Sections, paragraphs or clauses in this Agreement unless otherwise specified.

12. Attorneys’ Fees. In the event that any Proceeding is instituted by Indemnitee under this Agreement to enforce or interpret any of the terms hereof, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding, unless a court of competent jurisdiction determines that each of the material assertions made by Indemnitee as a basis for such Proceeding were not made in good faith or were frivolous. In the event of a Proceeding instituted by or in the name of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding (including with respect to Indemnitee’s counterclaims and cross-claims made in such action), unless a court of competent jurisdiction determines that each of Indemnitee’s material defenses to such action were made in bad faith or were frivolous.

13. Miscellaneous.

(a) Governing Law. The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the state of Delaware, without giving effect to principles of conflicts of law.

(b) Entire Agreement; Binding Effect. Without limiting any of the rights of Indemnitee described in Section 3(b) hereof, this Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and merges all prior discussions and supersedes any and all previous agreements between them covering the subject matter herein. The indemnification provided under this Agreement applies with respect to events occurring before or after the effective date of this Agreement, and shall continue to apply even after Indemnitee has ceased to serve the Company in any and all indemnified capacities.

(c) Amendments and Waivers. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance.

(d) Successors and Assigns. This Agreement shall be binding upon the Company and its successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company) and assigns, and inure to the benefit of Indemnitee and Indemnitee’s heirs, executors, administrators, legal representatives and assigns. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

(e) Notices. Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed sufficient when delivered personally or by overnight courier or sent by email, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party’s address as set forth on the signature page, as subsequently modified by written notice, or if no address is specified on the signature page, at the most recent address set forth in the Company’s books and records.

(f) Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.

(g) Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.

(h) Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and all of which together shall constitute one and the same agreement. Execution of a facsimile copy will have the same force and effect as execution of an original, and a facsimile signature will be deemed an original and valid signature.

(i) No Employment Rights. Nothing contained in this Agreement is intended to create in Indemnitee any right to continued employment.

(j) Company Position. The Company shall be precluded from asserting, in any Proceeding brought for purposes of establishing, enforcing or interpreting any right to indemnification under this Agreement, that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement and is precluded from making any assertion to the contrary.

(k) Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company to effectively bring suit to enforce such rights.

[Signature Page Follows]

The parties have executed this Agreement as of the date first set forth above.

	the company:

	BIOMX INC.

	By:
		(Signature)
	Name:
	Title:

	Address:

	AGREED TO AND ACCEPTED:

	INDEMNITEE:


	(Signature)

	Address:



	Email:

Schedule to Exhibit 10.2

The following directors and executive officers of BiomX Inc., or BiomX, are parties to Indemnification Agreements with BiomX which are substantially identical in all material respects to the representative Indemnification Agreement filed herewith and are dated as of the respective dates listed below. The other Indemnification Agreements are omitted pursuant to Instruction 2 to Item 601 of Regulation S-K.

Name of Signatory		Date
Susan Blum		April 11, 2024
Dr. Jesse Goodman		March 15, 2024
Jonathan Leff		March 15, 2024
Gregory Merril		March 15, 2024
Avraham Gabay		November 14, 2023
Eddie Williams		October 12, 2023
Dr. Alan C. Moses		October 2, 2020
Marina Wolfson		December 1, 2019
Jonathan Solomon		October 28, 2019
Dr. Russell Greig		October 28, 2019
Assaf Oron		October 28, 2019
Dr. Merav Bassan		October 28, 2019

Exhibit 31.1

CERTIFICATION

PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Jonathan Solomon, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of BiomX Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13(a)-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 20, 2024	/s/ Jonathan Solomon
	Jonathan Solomon
	Chief Executive Officer
	(Principal executive officer)

Exhibit 31.2

CERTIFICATION

PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Avraham Gabay, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of BiomX Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 20, 2024	/s/ Avraham Gabay
	Avraham Gabay
	Interim Chief Financial Officer
	(Principal financial officer)

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

In connection with the Quarterly Report of BiomX Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2024 as filed with the Securities and Exchange Commission (the “Quarterly Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, that, to his or her knowledge:

1.	The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.	The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 20, 2024	/s/ Jonathan Solomon
	Jonathan Solomon
	Chief Executive Officer
	(Principal executive officer)

Date: May 20, 2024	/s/ Avraham Gabay
	Avraham Gabay
	Interim Chief Financial Officer
	(Principal financial officer)

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2024	May 17, 2024
Document Information Line Items
Entity Registrant Name	BiomX Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		69,806,440
Amendment Flag	false
Entity Central Index Key	0001739174
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-38762
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3364020
Entity Address, Address Line One	22 Einstein St
Entity Address, Address Line Two	4th Floor
Entity Address, City or Town	Ness Ziona
Entity Address, Country	IL
Entity Address, Postal Zip Code	7414003
City Area Code	+972
Local Phone Number	723942377
Entity Interactive Data Current	Yes
Units, each consisting of Units, each consisting of one share of common stock, $0.0001 par value, and one warrant exercisable for one-half of one share of common stockone share of common stock, $0.0001 par value, and one warrant exercisable for one-half of one share of common stock
Document Information Line Items
Trading Symbol	PHGE.U
Title of 12(b) Security	Units, each consisting of one share of common stock, $0.0001 par value, and one warrant
Security Exchange Name	NYSE
Common stock, $0.0001 par value
Document Information Line Items
Trading Symbol	PHGE
Title of 12(b) Security	Common stock, $0.0001 par value
Security Exchange Name	NYSE

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 43,007	$ 14,907
Restricted cash	1,108	957
Other current assets	2,986	1,768
Total current assets	47,101	17,632
Non-current assets
Operating lease right-of-use assets	11,279	3,495
Property and equipment, net	7,438	3,902
In-process Research and development (“IPR&D”) assets and Goodwill	15,788
Total non-current assets	34,505	7,397
Total Assets	81,606	25,029
Current liabilities
Trade accounts payable	3,686	1,381
Current portion of lease liabilities	985	666
Other accounts payable	6,036	3,344
Current portion of long-term debt		5,785
Total current liabilities	10,707	11,176
Non-current liabilities
Contract liability	1,976	1,976
Long-term debt, net of current portion		5,402
Operating lease liabilities, net of current portion	9,139	3,239
Other liabilities	153	155
Private Placement Warrants	36,755
Total non-current liabilities	48,023	10,772
Commitments and Contingencies (Note 7)
Redeemable Convertible Preferred Shares
Preferred Stock, $0.0001 par value; Authorized - 1,000,000 shares as of March 31, 2024 and December 31, 2023. Issued and outstanding- 256,887 as of March 31, 2024. No shares issued and outstanding as of December 31, 2023.	32,420
Stockholders’ equity (Capital Deficiency)
Common Stock, $0.0001 par value; Authorized - 120,000,000 shares as of March 31, 2024 and December 31, 2023. Issued and outstanding-59,998,342 shares as of March 31, 2024 and 45,979,930 shares as of December 31, 2023.	4	3
Additional paid in capital	170,749	166,048
Accumulated deficit	(180,297)	(162,970)
Total stockholders’ equity (Capital Deficiency)	(9,544)	3,081
Total liabilities and stockholders’ equity	$ 81,606	$ 25,029

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	256,887
Preferred stock, shares outstanding	256,887
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	59,998,342	45,979,930
Common stock, shares outstanding	59,998,342	45,979,930

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Research and development (“R&D”) expenses, net	$ 4,105	$ 4,564
General and administrative expenses	2,680	1,644
Operating loss	6,785	6,208
Other income	(88)	(91)
Interest expenses	850	565
Loss from change in fair value of Private Placement Warrants	8,010
Finance expense (income), net	1,765	(327)
Loss before tax	17,322	6,355
Tax expenses	5	6
Net loss	$ 17,327	$ 6,361
Basic and loss per share of Common Stock (in Dollars per share)	$ 0.28	$ 0.2
Weighted average number of shares of Common Stock outstanding, basic (in Shares)	62,292,277	32,125,227

Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Diluted, loss per share of Common Stock	$ 0.28	$ 0.20
Diluted, weighted average number of shares of Common Stock outstanding	62,292,277	32,125,227

Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Shares and in Stockholders’ Equity (Capital Deficiency) (Unaudited) - USD ($)
$ in Thousands

Preferred Shares

Redeemable Convertible

Common Stock

Additional Paid-in Capital

Accumulated Deficit

Total

Balance at Dec. 31, 2022

$ 2

$ 157,838

$ (136,801)

$ 21,039

Balance (in Shares) at Dec. 31, 2022

29,976,582

Issuance of Common Stock and warrants under Private Investment in Public Equity (“PIPE”), net of $176 issuance costs (**)

^[2]

^[1]

1,293

Issuance of Common Stock and warrants under Private Investment in Public Equity (“PIPE”), net of $176 issuance costs (**) (in Shares)

^[2]

3,199,491

Stock-based compensation expenses

175

Net loss

(6,361)

Balance at Mar. 31, 2023

$ 2

159,306

(143,162)

16,146

Balance (in Shares) at Mar. 31, 2023

33,176,073

Balance at Dec. 31, 2023

$ 3

166,048

(162,970)

3,081

Balance (in Shares) at Dec. 31, 2023

45,979,930

Issuance of Common Stock, Merger Warrants and Redeemable Convertible Preferred Shares upon the APT acquisition, net of issuance cost

^[3]

$ 12,561

$ 1

3,227

3,228

Issuance of Common Stock, Merger Warrants and Redeemable Convertible Preferred Shares upon the APT acquisition, net of issuance cost (in Shares)

^[3]

40,470

9,164,968

Exercise of Pre-Funded Warrants into shares of Common Stock

^[2]

^[1]

Exercise of Pre-Funded Warrants into shares of Common Stock (in Shares)

^[2]

4,778,265

Issuance of Common Stock under Open Market Sales Agreement, net of $1 issuance costs

^[2]

^[1]

Issuance of Common Stock under Open Market Sales Agreement, net of $1 issuance costs (in Shares)

^[2]

75,179

Stock-based compensation expenses

909

Issuance of Convertible Preferred Shares upon March 2024 PIPE, net of issuance costs

^[3]

$ 19,859

541

Issuance of Convertible Preferred Shares upon March 2024 PIPE, net of issuance costs (in Shares)

^[3]

216,417

Net loss

(17,327)

Balance at Mar. 31, 2024

$ 32,420

$ 4

$ 170,749

$ (180,297)

$ (9,544)

Balance (in Shares) at Mar. 31, 2024

256,887

59,998,342

[1]	Less than $1.
[2]	See Note 9A.
[3]	See Note 1D.

Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Shares and in Stockholders’ Equity (Capital Deficiency) (Unaudited) (Parentheticals) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2024

Mar. 31, 2023

Issuance of common stock under open market sales agreement, net of issuance costs

^[1]

$ 1

Issuance of Common Stock and warrants under Private Investment in Public Equity (“PIPE”), net of issuance costs

^[1]

$ 1

Common Stock

Issuance of common stock under open market sales agreement, net of issuance costs

^[1]

$ 176

Issuance of Common Stock and warrants under Private Investment in Public Equity (“PIPE”), net of issuance costs

^[1]

$ 176

[1]	See Note 9A.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS – OPERATING ACTIVITIES
Net loss	$ (17,327)	$ (6,361)
Adjustments required to reconcile cash flows used in operating activities:
Depreciation and amortization	229	223
Stock-based compensation	177	175
Amortization of debt issuance costs		68
Finance expense (income), net	(456)	(123)
Changes in other liabilities	(2)	4
Loss from change in fair value of Private Placement Warrants	8,010
Private Placement Warrants issuance cost	732
Changes in operating assets and liabilities:
Other current and non-current assets	562	(174)
Trade accounts payable	(1,775)	363
Other accounts payable	(122)	806
Net change in operating leases	(1,384)	(26)
Net cash used in operating activities	(11,356)	(5,045)
CASH FLOWS – INVESTING ACTIVITIES
Cash and Restricted Cash acquired from the APT acquisition	663
Proceeds from short-term deposits		2,000
Purchases of property and equipment		(10)
Net cash provided by investing activities	663	1,990
CASH FLOWS – FINANCING ACTIVITIES
Issuance of Private Placement Warrants under March 2024 PIPE	28,745
Issuance of Redeemable Convertible Preferred Shares under March 2024 PIPE	21,269
March 2024 PIPE issuance costs	(316)
Issuance of Common Stock and Warrants under PIPE		1,469
Pre-Funded Warrants exercise	5
Issuance of Common Stock under Open Market Sales Agreement, net of issuance costs	19
Repayment of long-term debt	(10,747)	(419)
Net cash provided by financing activities	38,975	1,050
Increase(decrease) in cash and cash equivalents and restricted cash	28,282	(2,005)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(31)	13
Cash and cash equivalents and restricted cash at the beginning of the period	15,864	32,294
Cash and cash equivalents and restricted cash at the end of the period	44,115	30,302
RECONCILIATION OF AMOUNTS ON CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents	43,007	29,346
Restricted cash	1,108	956
Total cash and cash equivalents and restricted cash	44,115	30,302
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	1,419	495
Taxes paid	3	6
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:
Issuance costs from PIPE included in trade accounts payable		176
Property and equipment purchases included in accounts payable and Trade payable	17
Issuance cost from March 2024 PIPE	1,826
Issuance cost from the APT acquisition	62
Issuance of Common Stock under the APT acquisition	3,041
Issuance of Redeemable Convertible Preferred Shares under the APT acquisition	12,610
Issuance of Merger Warrants under the APT acquisition	$ 200

General

3 Months Ended

Mar. 31, 2024

General [Abstract]

GENERAL

NOTE 1 – GENERAL

General information

Israel-Hamas war

To date, the State of Israel continues to be at war with Hamas and in an armed conflict with Hezbollah.

Going concern

Merger Agreement

●

The Chief Executive Officer and the majority of management roles are held by individuals who were affiliated with the Company prior to the Acquisition.

Purchase Price Allocation

	Amounts
Cash and cash equivalents		509
Restricted cash		154
Other current assets		1,780
Property, plant and equipment		3,748
Operating lease right-of-use asset		7,953
IPR&D assets and Goodwill		15,788
Total assets		29,932

Trade accounts payable		(3,667	)
Other accounts payable		(2,595	)
Operating lease liability		(7,819	)
Total liabilities		(14,081	)
Total consideration		15,851

The following table summarizes the fair value of the consideration transferred to APT shareholders for the Acquisition:

	Amounts
Common Stock		3,041
Redeemable Convertible Preferred Shares		12,610
Merger Warrants		200
		15,851

	Three Months Ended March 31,
	2024		2023
Underlying value of Common Stock ($)		0.37		-
Exercise price ($)		5.0		-
Expected volatility (%)		117.7		-
Expected terms (years)		2.87		-
Risk-free interest rate (%)		4.5		-

These intangible assets are classified as Level 3 measurements within the fair value hierarchy.

The actual APT net loss included in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2024, is as follows:

		March 31, 2024
Net loss attributable to APT			855

The following unaudited table provides certain pro forma financial information for the Company as if the Acquisition occurred on January 1, 2023:

		March 31, 2024*
Net loss			16,720

*	The pro forma amounts above are derived from historical numbers of the Company and APT.

Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Significant Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

Unaudited Condensed Financial Statements

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation.

Use of Estimates in the Preparation of Financial Statements

Business Acquisition

Financial instruments

Basic and diluted loss per share

Intangible Assets

Goodwill

Intangible assets

Recent Accounting Standards

Recently issued accounting pronouncements

Recently issued accounting pronouncements, not yet adopted

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

There were no changes in the fair value hierarchy levelling during the three months ended March 31, 2024 and year ended December 31, 2023.

The following table summarizes the fair value of our financial assets and liabilities that were accounted for at fair value on a recurring basis, by level within the fair value hierarchy:

	March 31, 2024
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents:
Money market funds		37,124		-		-		37,124
Foreign exchange contracts receivable				99		-		99
		37,124		99		-		37,223
Liabilities:
Contingent consideration						153		153
Private Placement Warrants						36,755		36,755
		-				36,908		36,908

	December 31, 2023
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents:
Money market funds		11,377		-		-		11,377
Foreign exchange contracts receivable				256		-		256
		11,377		256		-		11,633
Liabilities:
Contingent consideration		-		-		155		155
		-		-		155		155

The changes in the fair value of the Company’s Level 3 financial liabilities, which are measured on a recurring basis are as follows:

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Beginning balance	-		-
Private Placement Warrants		28,745		-
Revaluation recorded in financial expense		8,010		-
Ending balance		36,755		-

The Company determined the fair value of the liabilities for the Private Placement Warrants using the Black-Scholes model, a Level 3 measurement, within the fair value hierarchy.

The main assumptions used are as follows:

	Three Months Ended March 31,
	2024		2023
Underlying value of Common Stock ($)		0.37-0.45		-
Exercise price ($)		0.23		-
Expected volatility (%)		117.7-117.8		-
Expected terms (years)		2.3-2.25		-
Risk-free interest rate (%)		4.5-4.6		-

Other Current Assets

3 Months Ended

Mar. 31, 2024

Other Current Assets [Abstract]

OTHER CURRENT ASSETS

NOTE 4 – OTHER CURRENT ASSETS

	March 31, 2024		December 31, 2023
Government institutions		120		66
Prepaid insurance		119		505
Other prepaid expenses		362		128
Grants receivables		2,241		574
Other		144		495
Other current assets		2,986		1,768

Other Accounts Payable

3 Months Ended

Mar. 31, 2024

Other Accounts Payable [Abstract]

OTHER ACCOUNTS PAYABLE

NOTE 5 – OTHER ACCOUNTS PAYABLE

	March 31, 2024		December 31, 2023
Employees and related institutions		2,197		1,852
Accrued expenses		2,393		1,289
Government institutions		663		175
Prepaid sublease income		28		28
Severance related to former employees of APT		526		-
Other		229		-
		6,036		3,344

Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

LEASES

NOTE 6 – LEASES

Lease expenses recorded in the condensed statements of operations were $593 and $315 for the three months ended March 31, 2024 and 2023, respectively.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 7 – COMMITMENTS AND CONTINGENCIES

	B.	In August 2019, APT was awarded $9,638 from the U.S. Army Medical Research Acquisition Activity (“USAMRAA”) and the U.S. Army Medical Research & Development Command (“USAMRDC”) to advance personalized phage therapy from niche to broad use. This award is intended to lay the groundwork for rapid advancement of personalized phage therapy to commercialization for the variety of clinical indications and bacterial pathogens representing un-met needs with a focus on infections with significant military relevance. The competitive award was granted by USAMRAA and USAMRDC in collaboration with the Medical Technology Enterprise Consortium (“MTEC”), a 501(c)(3) biomedical technology consortium working in partnership with the Department of Defense. Under the cost reimbursement contract, MTEC reimburses APT for approved incurred costs that are based upon the achievement of certain milestones for conduct and completion of a Phase 1/2 study utilizing APT’s PhageBank to treat patients with urinary tract infections (“UTIs”). Over the course of years, APT entered into certain modifications to the contract to include additional activities for APT’s UTI program and perform pre-clinical activities to advance the Diabetic Foot Ulcer clinical program, as well as to include activities to advance potential bacteriophage-based vaccines against COVID-19, for a total contract value of $36,214. In conjunction with this agreement, APT is subject to a royalty assessment fee of an amount equal to 3% of the total funded value of the research project award. No liability was recorded in these condensed consolidated statements. During the period between the Acquisition and March 31, 2024, APT recorded $196 as a reduction of R&D expenses, net.

	C.	On June 23, 2022 (“Effective Date”), BiomX Israel entered into a research collaboration agreement with Boehringer Ingelheim International GmbH (“BI”) for a collaboration to identify biomarkers for IBD. Under the agreement, BiomX Israel is eligible to receive fees totaling $1,411 to cover costs to be incurred by BiomX Israel in conducting the research plan under the collaboration. The fees were paid in four installments according to certain activities under the agreement. In December 2023, the Company completed its obligations with respect to this agreement and the last installment of $211 was received on January 18, 2024. The consideration is recorded as a reduction of R&D expenses, net in the condensed consolidated statements of operations according to the input model method on a cost-to-cost basis.

Long-Term Debt

3 Months Ended

Mar. 31, 2024

Long-Term Debt [Abstract]

LONG-TERM DEBT

NOTE 8 – LONG-TERM DEBT

Stockholders Equity

3 Months Ended

Mar. 31, 2024

Stockholders Equity [Abstract]

STOCKHOLDERS EQUITY

NOTE 9 – STOCKHOLDERS EQUITY

Share Capital:

Private Investment in Public Equity:

In connection therewith, the Company issued warrants to purchase shares of the Company’s Common Stock to the Placement Agents (the “Agents Warrants”). See Note 9B for further information.

At-the-market Sales Agreement:

Preferred Stock:

Warrants:

As of March 31, 2024, the Company had the following outstanding warrants to purchase Common Stock issued to stockholders:

Warrant	Issuance Date	Expiration Date	Exercise Price Per Share		Number of Shares of Common Stock Underlying Warrants
Public Warrants	IPO (December 13, 2018)	October 28, 2024		11.50		3,500,000
2021 Registered Direct Offering Warrants	SPA (July 28, 2021)	January 28, 2027		5.00		2,812,501
Pre-Funded Warrants	February 27, 2023	-		0.001		1,869,755
Pre-Funded Warrants	May 4, 2023	-		0.001		7,962,694
Merger Warrants	March 15, 2024	January 28, 2027		5.00		2,166,497
Private Placement Warrants	March 15, 2024	Two years after the stockholder approval		0.2311		108,208,500
Agents Warrants	March 15, 2024	Two years after the stockholder approval		0.2311		9,523,809
						136,043,756

Stock-based Compensation:

The Company determined the fair value of the Agents Warrants using the Black-Scholes model as of March 5, 2024. The main assumptions used are as follows:

	Three Months Ended March 31,
	2024		2023
Underlying value of Common Stock ($)		0.23		-
Exercise price ($)		0.23		-
Expected volatility (%)		100.6		-
Expected terms (years)		2.32		-
Risk-free interest rate (%)		4.4		-

A summary of options granted to purchase the Company’s Common Stock under the Company’s share option plans is as follows:

	For the Three Months Ended March 31, 2024
	Number of Options			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at the beginning of period		5,280,711		$	0.54	$	72
Granted		-		$	-
Forfeited		(87,363	)	$	0.37
Expired		-			-
Exercised		-		$	-
Outstanding at the end of period		5,193,348			0.54	$	587
Exercisable at the end of period		3,249,620			0.57
Weighted average remaining contractual life of outstanding options – years as of March 31, 2024		6.42

Warrants:

As of March 31, 2024, the Company had the following outstanding compensation related warrants to purchase Common Stock:

Warrant

Issuance
Date

Expiration
Date

Exercise
Price
Per Share

Number of
Shares of
Common Stock
Underlying
Warrants

Private Warrants issued to scientific founders

November 27, 2017

2,974

Landlord Warrants*

March 15, 2024

January 28, 2027

5.00

250,000

252,974

(*)

See note 6.

The following table sets forth the total stock-based payment expenses resulting from options granted, included in the statements of operations:

	Three Months Ended March 31,
	2024		2023
Research and development expenses, net		65		87
General and administrative		112		88
		177		175

Basic and Diluted Loss Per Share

3 Months Ended

Mar. 31, 2024

Basic and Diluted Loss Per Share [Abstract]

BASIC AND DILUTED LOSS PER SHARE

NOTE 10 – BASIC AND DILUTED LOSS PER SHARE

Events During the Period

3 Months Ended

Mar. 31, 2024

Events During the Period [Abstract]

EVENTS DURING THE PERIOD

NOTE 11 – EVENTS DURING THE PERIOD

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 12 – SUBSEQUENT EVENTS

On May 9, 2024, the Company received a payment of $1,617 from MTEC as part of the reimbursement of approved incurred costs between December 2023 and February 2024.

Accounting Policies, by Policy (Policies)

3 Months Ended

Mar. 31, 2024

Significant Accounting Policies [Abstract]

Unaudited Condensed Financial Statements

Unaudited Condensed Financial Statements

Principles of Consolidation

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation.

Use of Estimates in the Preparation of Financial Statements

Use of Estimates in the Preparation of Financial Statements

Business Acquisition

Business Acquisition

Financial instruments

Financial instruments

Basic and diluted loss per share

Basic and diluted loss per share

Intangible Assets

Intangible Assets

Goodwill

Intangible assets

Recent Accounting Standards

Recent Accounting Standards

Recently issued accounting pronouncements

Recently issued accounting pronouncements, not yet adopted

General (Tables)

3 Months Ended

Mar. 31, 2024

General [Abstract]

Schedule of Fair Value Acquired Identifiable Assets And Assumed Liabilities

	Amounts
Cash and cash equivalents		509
Restricted cash		154
Other current assets		1,780
Property, plant and equipment		3,748
Operating lease right-of-use asset		7,953
IPR&D assets and Goodwill		15,788
Total assets		29,932

Trade accounts payable		(3,667	)
Other accounts payable		(2,595	)
Operating lease liability		(7,819	)
Total liabilities		(14,081	)
Total consideration		15,851

Schedule of Fair Value of the Consideration Transferred to APT Shareholders Acquisition

The following table summarizes the fair value of the consideration transferred to APT shareholders for the Acquisition:

	Amounts
Common Stock		3,041
Redeemable Convertible Preferred Shares		12,610
Merger Warrants		200
		15,851

Schedule of Fair Value of Merger Warrants

The Company determined the fair value of the Merger Warrants using the Black-Scholes model as of the Closing Date. The main assumptions used are as follows:

	Three Months Ended March 31,
	2024		2023
Underlying value of Common Stock ($)		0.37		-
Exercise price ($)		5.0		-
Expected volatility (%)		117.7		-
Expected terms (years)		2.87		-
Risk-free interest rate (%)		4.5		-

Schedule of Condensed Consolidated Statements of Operations

The actual APT net loss included in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2024, is as follows:

		March 31, 2024
Net loss attributable to APT			855

Schedule of Pro Forma Financial Information

The following unaudited table provides certain pro forma financial information for the Company as if the Acquisition occurred on January 1, 2023:

		March 31, 2024*
Net loss			16,720

*	The pro forma amounts above are derived from historical numbers of the Company and APT.

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Our Financial Assets and Liabilities

The following table summarizes the fair value of our financial assets and liabilities that were accounted for at fair value on a recurring basis, by level within the fair value hierarchy:

	March 31, 2024
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents:
Money market funds		37,124		-		-		37,124
Foreign exchange contracts receivable				99		-		99
		37,124		99		-		37,223
Liabilities:
Contingent consideration						153		153
Private Placement Warrants						36,755		36,755
		-				36,908		36,908

	December 31, 2023
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents:
Money market funds		11,377		-		-		11,377
Foreign exchange contracts receivable				256		-		256
		11,377		256		-		11,633
Liabilities:
Contingent consideration		-		-		155		155
		-		-		155		155

Schedule of Fair Value Level 3 financial liabilities

The changes in the fair value of the Company’s Level 3 financial liabilities, which are measured on a recurring basis are as follows:

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Beginning balance	-		-
Private Placement Warrants		28,745		-
Revaluation recorded in financial expense		8,010		-
Ending balance		36,755		-

Schedule of Fair Value of the Liabilities for the Private Placement Warrants

The main assumptions used are as follows:

	Three Months Ended March 31,
	2024		2023
Underlying value of Common Stock ($)		0.37-0.45		-
Exercise price ($)		0.23		-
Expected volatility (%)		117.7-117.8		-
Expected terms (years)		2.3-2.25		-
Risk-free interest rate (%)		4.5-4.6		-

Other Current Assets (Tables)

3 Months Ended

Mar. 31, 2024

Other Current Assets [Abstract]

Schedule of Other Current Assets

	March 31, 2024		December 31, 2023
Government institutions		120		66
Prepaid insurance		119		505
Other prepaid expenses		362		128
Grants receivables		2,241		574
Other		144		495
Other current assets		2,986		1,768

Other Accounts Payable (Tables)

3 Months Ended

Mar. 31, 2024

Other Accounts Payable [Abstract]

Schedule of Other Accounts Payable

	March 31, 2024		December 31, 2023
Employees and related institutions		2,197		1,852
Accrued expenses		2,393		1,289
Government institutions		663		175
Prepaid sublease income		28		28
Severance related to former employees of APT		526		-
Other		229		-
		6,036		3,344

Stockholders Equity (Tables)

3 Months Ended

Mar. 31, 2024

Stockholders Equity [Abstract]

Schedule of Outstanding Warrants to Purchase Common Stock Issued to Stockholders

As of March 31, 2024, the Company had the following outstanding warrants to purchase Common Stock issued to stockholders:

Warrant	Issuance Date	Expiration Date	Exercise Price Per Share		Number of Shares of Common Stock Underlying Warrants
Public Warrants	IPO (December 13, 2018)	October 28, 2024		11.50		3,500,000
2021 Registered Direct Offering Warrants	SPA (July 28, 2021)	January 28, 2027		5.00		2,812,501
Pre-Funded Warrants	February 27, 2023	-		0.001		1,869,755
Pre-Funded Warrants	May 4, 2023	-		0.001		7,962,694
Merger Warrants	March 15, 2024	January 28, 2027		5.00		2,166,497
Private Placement Warrants	March 15, 2024	Two years after the stockholder approval		0.2311		108,208,500
Agents Warrants	March 15, 2024	Two years after the stockholder approval		0.2311		9,523,809
						136,043,756

Schedule of Fair Value Of The Agents Warrants Using The Black-Scholes Model

	Three Months Ended March 31,
	2024		2023
Underlying value of Common Stock ($)		0.23		-
Exercise price ($)		0.23		-
Expected volatility (%)		100.6		-
Expected terms (years)		2.32		-
Risk-free interest rate (%)		4.4		-

Schedule of Options Granted to Purchase

A summary of options granted to purchase the Company’s Common Stock under the Company’s share option plans is as follows:

	For the Three Months Ended March 31, 2024
	Number of Options			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at the beginning of period		5,280,711		$	0.54	$	72
Granted		-		$	-
Forfeited		(87,363	)	$	0.37
Expired		-			-
Exercised		-		$	-
Outstanding at the end of period		5,193,348			0.54	$	587
Exercisable at the end of period		3,249,620			0.57
Weighted average remaining contractual life of outstanding options – years as of March 31, 2024		6.42

Schedule of Outstanding Compensation Related Warrants to Purchase Common Stock

As of March 31, 2024, the Company had the following outstanding compensation related warrants to purchase Common Stock:

Warrant

Issuance
Date

Expiration
Date

Exercise
Price
Per Share

Number of
Shares of
Common Stock
Underlying
Warrants

Private Warrants issued to scientific founders

November 27, 2017

2,974

Landlord Warrants*

March 15, 2024

January 28, 2027

5.00

250,000

252,974

(*)

See note 6.

Schedule of Stock-Based Payment Expenses

The following table sets forth the total stock-based payment expenses resulting from options granted, included in the statements of operations:

	Three Months Ended March 31,
	2024		2023
Research and development expenses, net		65		87
General and administrative		112		88
		177		175

General (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Mar. 15, 2024	Mar. 31, 2024	Dec. 31, 2023
General [Line Items]
Shares received	216,417
Preferred stock, par value		$ 0.0001
Incurred accumulated deficit		$ (180,297)	$ (162,970)
Expiration term	Jan. 28, 2027
Aggregate gross proceeds		50,000
Transaction costs		$ 741
Percentage of discount for lack of marketability		9.40%
Goodwill value		$ 15,788
Estimated useful life		20 years
Private Placement Warrants [Member]
General [Line Items]
Share issued	108,208,500
March 2024 PIPE [Member]
General [Line Items]
Proceeds from PIPE investment	$ 50,000
Merger Warrants [Member]
General [Line Items]
Share issued	2,166,497
Multi-Period Excess Earnings Method (“MPEEM”) [Member]
General [Line Items]
Intangible assets		$ 15,287
Goodwill value		$ 501
APT’s Stockholders [Member]
General [Line Items]
Merger owned percentage		45.00%
APT’s Stockholders [Member] \| Private Placement Warrants [Member]
General [Line Items]
Merger owned percentage		55.00%
Convertible Preferred Stock [Member]
General [Line Items]
Share issued	40,470
Redeemable Convertible Preferred Stock [Member]
General [Line Items]
Percentage of discount for lack of marketability		14.90%
Preferred Stock [Member] \| Convertible Preferred Stock [Member]
General [Line Items]
Preferred stock, par value	$ 0.0001
Common Stock [Member]
General [Line Items]
Shares received	9,164,968
Share issued	9,164,968
Conversion of stock, shares converted	1,000
Exercise price per share	$ 5	$ 0.001

General (Details) - Schedule of Fair Value Acquired Identifiable Assets And Assumed Liabilities - Purchase Price Allocation [Member] $ in Thousands	Mar. 15, 2024 USD ($)
General (Details) - Schedule of Fair Value Acquired Identifiable Assets And Assumed Liabilities [Line Items]
Cash and cash equivalents	$ 509
Restricted cash	154
Other current assets	1,780
Property, plant and equipment	3,748
Operating lease right-of-use asset	7,953
IPR&D assets and Goodwill	15,788
Total assets	29,932
Trade accounts payable	(3,667)
Other accounts payable	(2,595)
Operating lease liability	(7,819)
Total liabilities	(14,081)
Total consideration	$ 15,851

General (Details) - Schedule of Fair Value of the Consideration Transferred to APT Shareholders Acquisition - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Fair Value of the Consideration Transferred to APT Shareholders Acquisition [Abstract]
Common Stock	$ 3,041
Redeemable Convertible Preferred Shares	12,610
Merger Warrants	200
Total	$ 15,851

General (Details) - Schedule of Fair Value of Merger Warrants - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Fair Value of Merger Warrants [Abstract]
Underlying value of Common Stock ($)	$ 0.37
Exercise price ($)	$ 5
Expected volatility (%)	117.70%
Expected terms (years)	2 years 10 months 13 days
Risk-free interest rate (%)	4.50%

General (Details) - Schedule of Condensed Consolidated Statements of Operations $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
APT [Member]
Condensed Income Statements, Captions [Line Items]
Net loss attributable to APT	$ 855

General (Details) - Schedule of Pro Forma Financial Information
$ in Thousands

3 Months Ended

Mar. 31, 2024

USD ($)

Schedule of Pro Forma Financial Information [Abstract]

Net loss

$ 16,720

^[1]

[1]	The pro forma amounts above are derived from historical numbers of the Company and APT.

Significant Accounting Policies (Details)	3 Months Ended
Significant Accounting Policies (Details)	Mar. 31, 2024 $ / shares
Significant Accounting Policies [Abstract]
Exercise price	$ 0.001

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair Value of Financial Instruments (Details) [Line Items]
Foreign exchange contracts	$ 1,711	$ 4,136
Fair value asset	$ 99	$ 256
Minimum [Member]
Fair Value of Financial Instruments (Details) [Line Items]
Discount rate, percentage	3.60%
Maximum [Member]
Fair Value of Financial Instruments (Details) [Line Items]
Discount rate, percentage	4.40%

Fair Value of Financial Instruments (Details) - Schedule of Fair Value of Our Financial Assets and Liabilities - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Cash equivalents:
Money market funds	$ 37,124	$ 11,377
Foreign exchange contracts receivable	99	256
Total assets	37,223	11,633
Liabilities:
Contingent consideration	153	155
Private Placement Warrants	36,755
Total liabilities	36,908	155
Level 1 [Member]
Cash equivalents:
Money market funds	37,124	11,377
Total assets	37,124	11,377
Liabilities:
Contingent consideration
Total liabilities
Level 2 [Member]
Cash equivalents:
Money market funds
Foreign exchange contracts receivable	99	256
Total assets	99	256
Liabilities:
Contingent consideration
Total liabilities
Level 3 [Member]
Cash equivalents:
Money market funds
Foreign exchange contracts receivable
Total assets
Liabilities:
Contingent consideration	153	155
Private Placement Warrants	36,755
Total liabilities	$ 36,908	$ 155

Fair Value of Financial Instruments (Details) - Schedule of Fair Value Level 3 financial liabilities - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Fair Value Level 3 Financial Liabilities [Abstract]
Beginning balance
Private Placement Warrants	28,745
Revaluation recorded in financial expense	8,010
Ending balance	$ 36,755

Fair Value of Financial Instruments (Details) - Schedule of Fair Value of the Liabilities for the Private Placement Warrants - Fair Value, Inputs, Level 3 [Member] - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Fair Value of Financial Instruments (Details) - Schedule of Fair Value of the Liabilities for the Private Placement Warrants [Line Items]
Underlying value of Common Stock ($) (in Dollars per share)
Exercise price ($) (in Dollars per share)	$ 0.23
Expected volatility (%)
Expected terms (years)
Risk-free interest rate (%)
Minimum [Member]
Fair Value of Financial Instruments (Details) - Schedule of Fair Value of the Liabilities for the Private Placement Warrants [Line Items]
Underlying value of Common Stock ($) (in Dollars per share)	$ 0.37
Expected volatility (%)	117.70%
Expected terms (years)	2 years 3 months 18 days
Risk-free interest rate (%)	4.50%
Maximum [Member]
Fair Value of Financial Instruments (Details) - Schedule of Fair Value of the Liabilities for the Private Placement Warrants [Line Items]
Underlying value of Common Stock ($) (in Dollars per share)	$ 0.45
Expected volatility (%)	117.80%
Expected terms (years)	2 years 3 months
Risk-free interest rate (%)	4.60%

Other Current Assets (Details) - Schedule of Other Current Assets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Other Current Assets [Abstract]
Government institutions	$ 120	$ 66
Prepaid insurance	119	505
Other prepaid expenses	362	128
Grants receivables	2,241	574
Other	144	495
Other current assets	$ 2,986	$ 1,768

Other Accounts Payable (Details) - Schedule of Other Accounts Payable - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Other Accounts Payable [Abstract]
Employees and related institutions	$ 2,197	$ 1,852
Accrued expenses	2,393	1,289
Government institutions	663	175
Prepaid sublease income	28	28
Severance related to former employees of APT	526
Other	229
Total	$ 6,036	$ 3,344

Leases (Details) $ / shares in Units, $ in Thousands	3 Months Ended
Leases (Details) $ / shares in Units, $ in Thousands	Mar. 31, 2024 USD ($) m² $ / shares shares	Mar. 31, 2023 USD ($)
Leases [Line Items]
Square feet of area (in Square Meters) \| m²	49,625
Payments for rent	$ 255
Decreased leased area (in Square Meters) \| m²	25,894
Lease payments	$ 134
Premises fee	$ 1,500
Warrants issued (in Shares) \| shares	250,000
Purchase of aggregate shares (in Shares) \| shares	250,000
Common stock exercise price (in Dollars per share) \| $ / shares	$ 5
Termination fee	$ 3,000
Lease expenses	$ 593	$ 315

Commitments and Contingencies (Details) ₪ in Thousands		1 Months Ended									3 Months Ended		12 Months Ended
Commitments and Contingencies (Details) ₪ in Thousands	Aug. 31, 2019 USD ($)	Jun. 23, 2023 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2023 ILS (₪)	Mar. 31, 2022 USD ($)	Mar. 31, 2022 ILS (₪)	Aug. 31, 2021 USD ($)	Aug. 31, 2021 ILS (₪)	Mar. 31, 2021 USD ($)	Mar. 31, 2021 ILS (₪)	Mar. 31, 2024 USD ($)	Mar. 31, 2024 ILS (₪)	Dec. 31, 2023 USD ($)
Commitments and Contingencies [Line Items]
Aggregate budget			$ 3,164,000	₪ 11,283	$ 4,094,000	₪ 13,004	$ 1,778,000	₪ 5,737	$ 3,286,000	₪ 10,879
Aggregate revised budget									$ 2,118,000	₪ 6,753
Percentage of approved budgets	3.00%		30.00%	30.00%	30.00%	30.00%	50.00%	50.00%	30.00%	30.00%
Received amount of programs \| ₪												₪ 5,289
Received amount				₪ 2,783							$ 395,000	1,365
Total approved grants											9,353,000	32,068
Total grants received											8,003,000	27,423
Total grants subject to royalties											7,413,000
Total contingent obligation											8,033,000		$ 211
Total contract value	$ 36,214,000
Research and development expenses	196,000
Received fees		$ 1,411,000
U.S. Army Medical Research Acquisition Activity (“USAMRAA”) [Member]
Commitments and Contingencies [Line Items]
Amount awarded	$ 9,638,000
IIA [Member]
Commitments and Contingencies [Line Items]
Received amount of programs											577,000	₪ 1,912
Received amount											$ 768,000
Minimum [Member]
Commitments and Contingencies [Line Items]
Royalties rate											3.00%	3.00%
Maximum [Member]
Commitments and Contingencies [Line Items]
Royalties rate											3.50%	3.50%
IIA [Member]
Commitments and Contingencies [Line Items]
Received amount of programs											$ 1,622,000

Long-Term Debt (Details) - USD ($) $ in Thousands		3 Months Ended
Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 19, 2024	Mar. 31, 2024	Mar. 31, 2023	Aug. 16, 2021
Long-Term Debt [Line Items]
Prepaid rate	1.00%	1.00%
Interest expense the term loan amount	$ 10,428
Principal outstanding amount	983
Prepaid principal amount	94
Interest expense		$ 850
Long Term Debts [Member]
Long-Term Debt [Line Items]
Accrued interest	$ 69
Interest expense			$ 565
Loan Facility [Member]
Long-Term Debt [Line Items]
Prepaid rate		6.55%
First tranche [Member]
Long-Term Debt [Line Items]
Advanced amount				$ 15,000

Stockholders Equity (Details) - Part-1 - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Mar. 15, 2024

Feb. 22, 2023

Mar. 31, 2024

Mar. 31, 2023

Dec. 31, 2023

Stockholders Equity [Line Items]

Additional shares

216,417

Consideration paid (in Dollars)

$ 5

Exercise price per share (in Dollars per share)

$ 0.001

Share issued

59,998,342

45,979,930

Convertible prefered shares

2,166,497

Aggregate shares

250,000

Combination price (in Dollars per share)

$ 231.1

Gross proceeds (in Dollars)

$ 50,000

Warrant exercise price (in Dollars per share)

$ 0.2311

Transaction cost (in Dollars)

$ 3,317

Share based compensation (in Dollars)

177

$ 175

PIPE preferred shres (in Dollars)

1,410

Private placement warrants (in Dollars)

$ 28,745

Aggregate offering price

7,500

Sale of stock

75,179

Aggregate price per share (in Dollars per share)

$ 0.271

Net proceeds (in Dollars)

$ 19

Aggregate commision (in Dollars)

$ 1

Preferred stock, shares authorized

1,000,000

Preferred stock, par value (in Dollars per share)

$ 0.0001

Issuable share

40,470

Redemption convertible preferred share

216,417

Convertible preferred shares per share (in Dollars per share)

$ 0.0001

Private Placement Warrants [Member]

Stockholders Equity [Line Items]

Aggregate warrants

216,417

Aggregate shares

108,208,500

Common Stock [Member]

Stockholders Equity [Line Items]

Additional shares

9,164,968

Exercise of Pre-Funded Warrants into shares of Common Stock

^[1]

4,778,265

Issuance of shares

9,164,968

Share issued

40,470

Private Placement [Member]

Stockholders Equity [Line Items]

Additional shares

15,997,448

Prefunded warrant

14,610,714

Prefunded warrant per share (in Dollars per share)

$ 0.245

Prefunded warrant in pipe (in Dollars per share)

$ 0.244

Net proceeds (in Dollars)

$ 7,152

Issuance cost (in Dollars)

$ 333

Exercise of Pre-Funded Warrants into shares of Common Stock

4,778,265

Exercise share common stock

4,778,265

Share based compensation (in Dollars)

$ 1,273

Private placement warrants (in Dollars)

$ 1,907

[1]	See Note 9A.

Stockholders Equity (Details) - Part-2		12 Months Ended
Stockholders Equity (Details) - Part-2	Mar. 15, 2024 shares	Mar. 15, 2024 $ / shares shares
Stockholders Equity [Line Items]
Granted shares	9,523,809	9,523,809
Securities Purchase Agreement [Member]
Stockholders Equity [Line Items]
Warrants purchase shares	9,523,809
Board of Directors [Member]
Stockholders Equity [Line Items]
Prefunded warrants exercise price (in Dollars per share) \| $ / shares		$ 0.2311
Vesting period term		2 years

Stockholders Equity (Details) - Schedule of Outstanding Warrants to Purchase Common Stock Issued to Stockholders - Warrants [Member]	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Class of Warrant or Right [Line Items]
Number of Shares of Common Stock Underlying Warrants	136,043,756
Public Warrants [Member] \| IPO (December 13, 2018) [Member]
Class of Warrant or Right [Line Items]
Issuance Date	IPO (December 13, 2018)
Expiration Date	October 28, 2024
Exercise Price Per Share \| $ / shares	$ 11.5
Number of Shares of Common Stock Underlying Warrants	3,500,000
2021 Registered Direct Offering Warrants [Member] \| SPA (July 28, 2021) [Member]
Class of Warrant or Right [Line Items]
Issuance Date	SPA (July 28, 2021)
Expiration Date	January 28, 2027
Exercise Price Per Share \| $ / shares	$ 5
Number of Shares of Common Stock Underlying Warrants	2,812,501
Pre-Funded Warrants [Member] \| February 27, 2023 [Member]
Class of Warrant or Right [Line Items]
Issuance Date	February 27, 2023
Expiration Date
Exercise Price Per Share \| $ / shares	$ 0.001
Number of Shares of Common Stock Underlying Warrants	1,869,755
May 4, 2023 [Member] \| Pre-Funded Warrants [Member]
Class of Warrant or Right [Line Items]
Issuance Date	May 4, 2023
Expiration Date
Exercise Price Per Share \| $ / shares	$ 0.001
Number of Shares of Common Stock Underlying Warrants	7,962,694
Merger Warrants [Member] \| March 15, 2024 [Member]
Class of Warrant or Right [Line Items]
Issuance Date	March 15, 2024
Expiration Date	January 28, 2027
Exercise Price Per Share \| $ / shares	$ 5
Number of Shares of Common Stock Underlying Warrants	2,166,497
Private Placement Warrants [Member] \| March 15, 2024 [Member]
Class of Warrant or Right [Line Items]
Issuance Date	March 15, 2024
Expiration Date	Two years after the stockholder approval
Exercise Price Per Share \| $ / shares	$ 0.2311
Number of Shares of Common Stock Underlying Warrants	108,208,500
Agents Warrants [Member] \| March 15, 2024 [Member]
Class of Warrant or Right [Line Items]
Issuance Date	March 15, 2024
Expiration Date	Two years after the stockholder approval
Exercise Price Per Share \| $ / shares	$ 0.2311
Number of Shares of Common Stock Underlying Warrants	9,523,809

Stockholders Equity (Details) - Schedule of Fair Value Of The Agents Warrants Using The Black-Scholes Model - Black-Scholes-Merton Model [Member] - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stockholders Equity (Details) - Schedule of Fair Value Of The Agents Warrants Using The Black-Scholes Model [Line Items]
Underlying value of Common Stock ($)	$ 0.23
Exercise price ($)	$ 0.23
Expected volatility (%)	100.60%
Expected terms (years)	2 years 3 months 25 days
Risk-free interest rate (%)	4.40%

Stockholders Equity (Details) - Schedule of Options Granted to Purchase - Stock Option [Member]	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Stockholders Equity (Details) - Schedule of Options Granted to Purchase [Line Items]
Number of Options, Outstanding at the beginning of period \| shares	5,280,711
Weighted Average Exercise Price, Outstanding at the beginning of period \| $ / shares	$ 0.54
Aggregate Intrinsic Value, Outstanding at the beginning of period \| $	$ 72
Number of Options, Granted \| shares
Weighted Average Exercise Price, Granted \| $ / shares
Number of Options, Forfeited \| shares	(87,363)
Weighted Average Exercise Price, Forfeited \| $ / shares	$ 0.37
Number of Options, Expired \| shares
Weighted Average Exercise Price, Expired \| $ / shares
Number of Options, Exercised \| shares
Weighted Average Exercise Price, Exercised \| $ / shares
Number of Options, Outstanding at the end of period \| shares	5,193,348
Weighted Average Exercise Price, Outstanding at the end of period \| $ / shares	$ 0.54
Aggregate Intrinsic Value, Outstanding at the end of period \| $	$ 587
Number of Options, Exercisable at end of period \| shares	3,249,620
Weighted Average Exercise Price, Exercisable at the end of period \| $ / shares	$ 0.57
Weighted average remaining contractual life of outstanding options – years as of March 31, 2024	6 years 5 months 1 day

Stockholders Equity (Details) - Schedule of Outstanding Compensation Related Warrants to Purchase Common Stock - Warrant [Member]

3 Months Ended

Mar. 31, 2024

$ / shares

Stockholders Equity (Details) - Schedule of Outstanding Compensation Related Warrants to Purchase Common Stock [Line Items]

Number of Shares of Common Stock Underlying Warrants

252,974

Private Warrants issued to scientific founder [Member]

Stockholders Equity (Details) - Schedule of Outstanding Compensation Related Warrants to Purchase Common Stock [Line Items]

Issuance Date

Nov. 27, 2017

Expiration Date

Exercise Price Per Share | $ / shares

Number of Shares of Common Stock Underlying Warrants

2,974

Landlord Warrants [Member]

Stockholders Equity (Details) - Schedule of Outstanding Compensation Related Warrants to Purchase Common Stock [Line Items]

Issuance Date

Mar. 15, 2024

^[1]

Expiration Date

Jan. 28, 2027

^[1]

Exercise Price Per Share | $ / shares

$ 5

^[1]

Number of Shares of Common Stock Underlying Warrants

250,000

^[1]

[1]	See note 6.

Stockholders Equity (Details) - Schedule of Stock-Based Payment Expenses - Selling, General and Administrative Expenses [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Research and development expenses, net	$ 65	$ 87
General and administrative	112	88
Total	$ 177	$ 175

Basic and Diluted Loss Per Share (Details) - $ / shares	3 Months Ended
Basic and Diluted Loss Per Share (Details) - $ / shares	Mar. 31, 2024	Mar. 15, 2024	Mar. 31, 2023
Fully Vested Warrants [Member]
Basic and Diluted Loss Per Share (Details) [Line Items]
Number of shares issued warrants	2,974
Fully Vested Pre-Funded Warrants [Member]
Basic and Diluted Loss Per Share (Details) [Line Items]
Number of shares issued warrants	9,832,449		2,776,429
Underlying Options [Member]
Basic and Diluted Loss Per Share (Details) [Line Items]
Anti-dilutive shares	5,193,348
Underlying Warrants [Member]
Basic and Diluted Loss Per Share (Details) [Line Items]
Anti-dilutive shares	126,461,307
Contingent Shares [Member]
Basic and Diluted Loss Per Share (Details) [Line Items]
Anti-dilutive shares	2,000,000
Redeemable Convertible Preferred Sares [Member]
Basic and Diluted Loss Per Share (Details) [Line Items]
Anti-dilutive shares	256,887,000
Common Stock [Member]
Basic and Diluted Loss Per Share (Details) [Line Items]
Exercise price (in Dollars per share)	$ 0.001	$ 5