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VASCULAR BIOGENICS LTD. (VBLT), a leading biopharmaceutical comp any specializing in innovative treatments for various vascular diseases, has released its unaudited financial results for the second quarter (Q2) of 2023. The report highlights a net loss of $874,000 in Q2 2023, reflecting a significant improvement from the previous year. However, the company reported revenue of $0 during the quarter, largely influenced by substantial research and development expenses.
Consolidated Balance Sheets
VBL's unaudited consolidated balance sheets indicate the company's assets and liabilities as of June 30, 2023. The company's total assets amounted to $24.6 million, down from $29.7 million recorded at the end of 2022. Current assets, including cash and cash equivalents, stood at $24.5 million. Non-current assets amounted to $98,000, which includes funds in respect of employee rights upon retirement and property, plant, and equipment.
During the second quarter of 2023, VBL reported a net loss and comprehensive loss of $874,000, compared to a net loss of $9.4 million in the same period last year. The revenue for Q2 2023 remained at $0, in contrast to $64,000 reported in Q2 2022. The cost of revenues improved, resulting in a gross profit of $0, a considerable improvement compared to a gross profit of $30,000 in the previous year.
VBL's operating expenses included research and development expenses amounting to $(1.5) million and general and administrative expenses totaling $1.9 million in Q2 2023. The company also incurred an impairment loss of $349,000 related to plant, property, and equipment. Consequently, the company reported an operating loss of $863,000 for the quarter.
Consolidated Statements of Changes in Ordinary Shares and Shareholders' Equity
The company's consolidated statements detailed changes in ordinary shares subject to possible redemption and shareholders' equity. Despite the net loss reported, VBL's shareholders' equity stood at $19.2 million as of June 30, 2023, a decrease from $22.5 million at the beginning of the year. The balance of ordinary shares, additional paid-in capital, and accumulated deficit contributed to this figure.
Consolidated Statements of Cash Flows
In terms of cash flows, VBL reported a net loss of $(3.5) million for the first half of 2023, a marked improvement from a net loss of $(19.9) million in the same period last year. The company's investing activities reflected a positive trend, with cash flows provided by investing activities amounting to $10.3 million, driven by proceeds from the sale of long-term assets and bank deposits. However, cash flows used in operating activities amounted to $(4.1) million, attributed to operational expenses and liabilities.
VBL's financial results for Q2 2023 demonstrate progress in reducing its net loss compared to the previous year. Despite reporting zero revenue for the quarter, the company remains focused on advancing its research and development efforts in the field of vascular diseases. As VBL continues to navigate the challenges and opportunities within the biopharmaceutical industry, stakeholders are closely observing the company's efforts to achieve sustainable growth and innovation.