0001213900-22-026004 | 10-Q | XBRL Viewer | Oramed Pharmaceuticals INC

ormp_AggregateOfSharesOfCommonStock

150,000,000

ormp_AggregateOfSharesOfCommonStock

207,500

ormp_AggregateOfSharesOfCommonStock

24,000

ChangesAtFairValueOfInvestments

ormp_AggregateOfSharesOfCommonStock

30,000

ormp_ChangesAtFairValueOfInvestments

$ 110,000

ChangesAtFairValueOfInvestments

ormp_ChangesAtFairValueOfInvestments

$ 459,000

RoyaltyNetSales

ormp_RoyaltyNetSales

7.50%

RoyaltyNetSales

ormp_RoyaltyNetSales

2.50%

ProvisionForUncertainTaxPositionnote

ormp_ProvisionForUncertainTaxPositionnote

$ 11,000

ProvisionForUncertainTaxPositionnote

ormp_ProvisionForUncertainTaxPositionnote

11,000

PaymentsToAcquireMutualFunds

ormp_PaymentsToAcquireMutualFunds

(3,029,000)

PaymentsToAcquireMutualFunds

ormp_PaymentsToAcquireMutualFunds

NonRefundableAmount

ormp_NonRefundableAmount

500,000

InterestReceived

ormp_InterestReceived

122,000

InterestReceived

ormp_InterestReceived

263,000

LongTermPurchaseCommitmentBonusAmount

ormp_LongTermPurchaseCommitmentBonusAmount

2,905,000

InitialPayment

ormp_InitialPayment

$ 3,000,000

ExpiredDate

ormp_ExpiredDate

Jan. 03, 2032

ExpiredDate

ormp_ExpiredDate

Jan. 03, 2032

IncreaseDecreaseInLiabilityForEmployeeRightsUponRetirement

ormp_IncreaseDecreaseInLiabilityForEmployeeRightsUponRetirement

$ (295,000)

IncreaseDecreaseInLiabilityForEmployeeRightsUponRetirement

ormp_IncreaseDecreaseInLiabilityForEmployeeRightsUponRetirement

(378,000)

InprocessResearchAndDevelopments

ormp_InprocessResearchAndDevelopments

1,040,000

InprocessResearchAndDevelopments

ormp_InprocessResearchAndDevelopments

ProceedsFromIssuanceOfCommonStockAndWarrants

ormp_ProceedsFromIssuanceOfCommonStockAndWarrants

2,969,000

ProceedsFromIssuanceOfCommonStockAndWarrants

ormp_ProceedsFromIssuanceOfCommonStockAndWarrants

$ 22,307,000

AssetAcquisitionsDescription

ormp_AssetAcquisitionsDescription

On that date, Oravax’s assets were (1) in process research and development of COVID-19 vaccine technology; and (2) $1,500 to be received in cash. According to the Stockholders Agreement, Oravax issued 1,890,000 shares of its capital stock to the Company, representing 63% of the issued and outstanding share capital of Oravax, on a fully diluted basis, as of the date of issuance, for which we paid $1,500.

AdditionalPaidInCapitalAmount

ormp_AdditionalPaidInCapitalAmount

$ (1,045,000)

AdditionalPaidInCapitalAmount

ormp_AdditionalPaidInCapitalAmount

PaymentObligationDisputed

ormp_PaymentObligationDisputed

$ 6,000,000

ormp_AverageYieldToMaturityRate

1.30%

ormp_AverageYieldToMaturityRate

0.83%

ormp_AverageYieldToMaturityRate

1.37%

DeferredRevenueRecognized

ormp_AverageYieldToMaturityRate

1.20%

NoteReceivableFromAkers

ormp_NoteReceivableFromAkers

$ 1,500,000

NoteReceivableFromAkers

ormp_NoteReceivableFromAkers

ormp_DeferredRevenueRecognized

666,000

ProceedsFromStockOptionsAndWarrantsExercised

ormp_ProceedsFromStockOptionsAndWarrantsExercised

6,725,000

ProceedsFromStockOptionsAndWarrantsExercised

ormp_ProceedsFromStockOptionsAndWarrantsExercised

CostOfSecurities

ormp_CostOfSecurities

595,000

CostOfSecurities

ormp_CostOfSecurities

$ 595,000

FutureLeasePaymentsInterestRatePercentage

ormp_FutureLeasePaymentsInterestRatePercentage

3.00%

DeferredRevenueRecognizedRemainingAmount

ormp_DeferredRevenueRecognizedRemainingAmount

$ 5,377,000

AnnualLeasePayment

ormp_AnnualLeasePayment

$ 435,000

AnnualLeasePayment

ormp_AnnualLeasePayment

$ 137,000

CondensedConsolidatedFinancialStatementsPreparationPolicyTextBlock

ormp_CondensedConsolidatedFinancialStatementsPreparationPolicyTextBlock

Condensed consolidated financial statements preparation

The condensed consolidated financial statements included herein have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and, on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2021 (the “2021 Form 10-K”). These condensed consolidated financial statements reflect all adjustments that are of a normal recurring nature and that are considered necessary for a fair statement of the results of the periods presented. Certain information and disclosures normally included in annual consolidated financial statements have been omitted in this interim period report pursuant to the rules and regulations of the Securities and Exchange Commission. Because the condensed consolidated interim financial statements do not include all of the information and disclosures required by U.S. GAAP for annual financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in the 2021 Form 10-K. The results for interim periods are not necessarily indicative of a full fiscal year’s results.

EmployeeRightsUponRetirement

ormp_EmployeeRightsUponRetirement

$ 22,000

EmployeeRightsUponRetirement

ormp_EmployeeRightsUponRetirement

22,000

PaymentsToAcquireFundsInRespectOfEmployeeRightsUponRetirement

ormp_PaymentsToAcquireFundsInRespectOfEmployeeRightsUponRetirement

GeneralAccountingPoliciesPolicyTextBlock

ormp_GeneralAccountingPoliciesPolicyTextBlock

General:

Incorporation and Operations

Oramed Pharmaceuticals Inc. (collectively with its subsidiaries, the “Company”, unless the context indicates otherwise), a Delaware corporation, was incorporated on April 12, 2002.

On February 17, 2006, the Company entered into an agreement with Hadasit Medical Services and Development Ltd. to acquire the provisional patent related to an orally ingestible insulin capsule to be used for the treatment of individuals with diabetes.

On May 14, 2007, the Company incorporated a wholly-owned subsidiary in Israel, Oramed Ltd. (the “Subsidiary”), which is engaged in research and development.

On July 30, 2019, the Subsidiary incorporated a wholly-owned subsidiary in Hong Kong, Oramed HK Limited (the “Hong Kong Subsidiary”). As of March 31, 2022, the Hong Kong Subsidiary has no operations.

On March 18, 2021, the Company entered into a license agreement (the “Oravax License Agreement”) with Oravax Medical Inc. (“Oravax”) and into a stockholders agreement (the “Stockholders Agreement”) with Akers Biosciences Inc. (“Akers”), Premas Biotech Pvt. Ltd. (“Premas”), Cutter Mill Capital LLC (“Cutter Mill”) and Run Ridge LLC (“Run Ridge”). According to the Stockholders Agreement, Oravax issued 1,890,000 shares of its capital stock to the Company, representing 63% of the issued and outstanding share capital of Oravax, on a fully diluted basis, as of the date of issuance. Consequently, Oramed consolidates Oravax in its consolidated financial statements since that time.

On November 23, 2021, Oravax incorporated a wholly-owned subsidiary in Israel, Oravax Medical Ltd., which is engaged in research and development. Effective January 1, 2022, Oravax transferred its rights and obligations under the Oravax License Agreement to Oravax Medical Ltd.

EFFECTOFEXCHANGERATECHANGESONCASH

ormp_EFFECTOFEXCHANGERATECHANGESONCASH

$ (15,000)

EFFECTOFEXCHANGERATECHANGESONCASH

ormp_EFFECTOFEXCHANGERATECHANGESONCASH

$ 8,000

SharebasedCompensationsArrangementBySharebasedPaymentAwardPlanModificationDescriptionAndTerms

ormp_SharebasedCompensationsArrangementBySharebasedPaymentAwardPlanModificationDescriptionAndTerms

the Company entered into a securities purchase agreement with several institutional and accredited investors (the “Purchasers”), pursuant to which the Company agreed to sell, in a registered direct offering (the “Offering”), an aggregate of 2,000,000 shares of the Company’s common stock to the Purchasers for an offering price of $25.00 per share. The closing of the sale of the shares occurred on November 5, 2021. The net proceeds to the Company from the Offering, after deducting the placement agent’s fees and expenses and the Company’s Offering expenses, were approximately $46,375.

ormp_RoyaltyPercentage

8.00%

ormp_RoyaltyPercentage

3.00%

ormp_RoyaltyPercentage

100.00%

ormp_RoyaltyPercentage

150.00%

ormp_ConsultingAgreementsFee

$ 146,705,000

ormp_ConsultingAgreementsFee

$ (46,000)

ormp_ConsultingAgreementsFee

$ 106,400,000

MaximumRoyaltiesPercentage

ormp_ConsultingAgreementsFee

$ (34,000)

GrantedShares

ormp_GrantedShares

12.03

GrantedShares

ormp_GrantedShares

214

ormp_MaximumRoyaltiesPercentage

63.00%

ExpiredDates

ormp_ExpiredDates

May 02, 2032

StockPurchaseAgreementWithHTIT

ormp_StockPurchaseAgreementWithHTIT

the Company entered into the SPA with HTIT, according to which, the Company issued 1,155,367 shares of common stock to HTIT for $12,000. The transaction closed on December 28, 2015.

AgentCommissionRate

ormp_AgentCommissionRate

3.00%

SharesOfCommonStock

ormp_SharesOfCommonStock

1,890,000

CostMethodInvestmentsOwnershipPercentageRetained

ormp_CostMethodInvestmentsOwnershipPercentageRetained

3.00%

AggregateOfferingPrice

ormp_AggregateOfferingPrice

$ 100,000,000

RetainingShares

ormp_RetainingShares

117,000

TotalConsideration

ormp_TotalConsideration

$ 49,500,000

FINANCIALOFINCOME

ormp_FINANCIALOFINCOME

(544,000)

FINANCIALOFINCOME

ormp_FINANCIALOFINCOME

(541,000)

NoncashExpenseForAcquiredInprocessResearchAndDevelopment

ormp_NoncashExpenseForAcquiredInprocessResearchAndDevelopment

$ 1,040,000

RoyaltyTerm

ormp_RoyaltyTerm

15 years

RestrictedStockUnit

ormp_RestrictedStockUnit

4,500

PrepaidPensionCost

ormp_PrepaidPensionCost

$ 24,000

PrepaidPensionCost

ormp_PrepaidPensionCost

$ 26,000

CommonStockPurchaseAgreementDescription

ormp_CommonStockPurchaseAgreementDescription

the Company granted options to purchase an aggregate of 321,500 shares of the Company’s common stock to the Company’s employees and board members at an exercise price of $13.89 per share (equivalent to the closing price of the Company’s common stock on the date of grant) as follows: 107,000 to the President and Chief Executive Officer; 72,000 to the Chief Scientific Officer; 36,000 to the Chief Operating and Business Officer, 32,000 to the Chief Financial Officer and Treasurer and 32,000 to the Chief Commercial Officer, an aggregate of 40,000 to four board members and 2,500 to an employee. The options will vest in four equal annual instalments on each of January 1, 2023, 2024, 2025 and 2026. These options expire on January 3, 2032. The fair value of all these options on the date of grant was $2,630, using the Black Scholes option-pricing model and was based on the following assumptions: stock price of $13.89; dividend yield of 0% for all years; expected volatility of 63.05%; risk-free interest rates of 1.46%; and expected term of 6.25 years.

MarketSharePrice

ormp_MarketSharePrice

$ 5.14

IssuanceExpense

ormp_IssuanceExpense

$ 23,000

RSUsOnTheDateOfGrant

ormp_RSUsOnTheDateOfGrant

23,000

LicenseAgreement

ormp_LicenseAgreement

38,883,000

AggregateAmount

ormp_AggregateAmount

20,500,000

MilestoneFourMember

ormp_MilestonePayments

4,000,000

MilestoneTwoMember

ormp_MilestonePayments

6,500,000

MilestonesThreeMember

ormp_MilestonePayments

4,000,000

MilestoneFiveMember