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XTL Biopharmaceuticals Ltd. Financial Report: Q2 2024 Insights & Strategic Moves

$XTLB
Form 6-K
Filed on: 2024-12-30
Source
XTL Biopharmaceuticals Ltd. Financial Report: Q2 2024 Insights & Strategic Moves

Key Information from XTL Biopharmaceuticals Ltd. Financial Report (Form 6-K)

Company Overview

  • Name: XTL Biopharmaceuticals Ltd. (NASDAQ: XTLB, TASE: XTLB.TA)
  • Headquarters: 26 Ben-Gurion St., Ramat Gan, 5112001, Israel
  • Report Date: December 30, 2024

Financial Highlights (for the six months ended June 30, 2024)

  • Cash and Cash Equivalents: $594,000 (down from $1.40 million as of December 31, 2023)
  • Marketable Securities: $992,000 (up from $605,000)
  • Total Assets: $2.398 million (down from $2.426 million)
  • Operating Loss: $596,000 (compared to $414,000 in the same period in 2023)
  • Total Comprehensive Loss: $219,000 (compared to $1.283 million in 2023)
  • Basic and Diluted Loss per Share: $0.000
  • Share Capital: 544,906,149 ordinary shares issued and outstanding.

Major Transactions

  1. Acquisition of Social Proxy Ltd.:
  • Completed on August 14, 2024.
  • Acquired for the issuance of 1,864,790 unregistered American Depositary Shares (ADSs), representing 21.16% of XTL's outstanding share capital, and a payment of $430,000.
  • Social Proxy will operate as a wholly owned subsidiary and its shareholders can appoint one representative to XTL's board.
  1. Private Placement Financing:
  • Secured $1.5 million commitment through a private placement, with approximately 1,500,000 units offered to investors at $1.00 per unit.
  • The deal includes warrants that may be exercised at an exercise price of $1.20.
  1. Loan Agreement with Social Proxy:
  • A loan of $300,000 was provided to Social Proxy, secured by a floating charge over its assets, with an interest rate of 8%.

Operational Challenges

  • The ongoing conflict in Israel, initiated by Hamas attacks on October 7, 2023, may disrupt operations but has not materially affected ongoing activities through the report date.
  • XTL continues to monitor the situation and adjust operations as needed.

Research and Development Expenses

  • R&D expenses were $12,000, a slight decrease from $19,000 in the previous year.

General and Administrative Expenses

  • Increased to $584,000 from $395,000 in the previous year, primarily due to higher share-based compensation.

Financial Position

  • Total Liabilities: $165,000 (down from $206,000)
  • Shareholder Equity: $2.233 million (up from $2.220 million)

Strategic Direction

  • XTL aims to expand its asset portfolio with high-potential assets, leveraging its acquisition of Social Proxy and its existing IP portfolio related to hCDR1, a compound for treating systemic lupus erythematosus (SLE).

Conclusion

XTL Biopharmaceuticals Ltd. is navigating significant operational challenges due to geopolitical instability while actively pursuing growth through strategic acquisitions and financing efforts. The company's financial position shows a mixed picture with a decrease in cash reserves but an increase in marketable securities, reflecting a focus on asset management and strategic investments.