GENERAL |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GENERAL |
NOTE
1 - GENERAL:
From
its formation on April 2, 2024 until the Closing of the Transactions on August 15, 2024, the Company had no operations and had been formed
for the sole purpose of entering into the Transactions and serving as the publicly-traded company following the Transactions. Silexion,
on the other hand, as the accounting acquirer in the Transactions and the predecessor entity to the Company from an accounting perspective,
had active operations during earlier periods of time, prior to the Transactions. Consequently, these financial statements reflect the
financial information of Silexion (as the predecessor entity to the Company) through August 15, 2024 and the financial information of
New Silexion (as the combined company following the Transactions) from August 16, 2024 forward.
The
Company has three subsidiaries as of December 31, 2024:
On
August 15, 2024, the parties completed the Transactions pursuant to which Merger Sub 2 merged with and into the SPAC, with the SPAC continuing
as the surviving company of such merger and a wholly-owned subsidiary of New Silexion (the “SPAC Merger”), and Merger
Sub 1 merged with and into Silexion, with Silexion continuing as the surviving company of such merger and a wholly-owned subsidiary
of New Silexion (the “Acquisition Merger”).
Upon
the effectiveness of the SPAC Merger, each outstanding SPAC Class A ordinary share and the sole outstanding SPAC Class B ordinary
share was converted into an ordinary share of New Silexion on a one-for-one basis. Each outstanding warrant to purchase one SPAC
Class A ordinary share was converted into a warrant to purchase one New Silexion ordinary share, at the same exercise price. Upon
the effectiveness of the Acquisition Merger, each outstanding ordinary share and each outstanding preferred share of Silexion was converted
into 3.9829 ordinary
shares of New Silexion, before adjustment for a subsequent reverse share split (the “Silexion Equity Exchange Ratio”). See
Note 1h for post-reverse share split figures. Each outstanding Silexion warrant and Silexion option to purchase one Silexion share, and
Silexion restricted share unit (RSU) that may be potentially settled for one Silexion share, was to become exercisable for, or became
subject to settlement for (as applicable), such number of New Silexion ordinary shares as were equal to the Silexion Equity Exchange Ratio.
The exercise price per New Silexion ordinary share of each such converted Silexion option and Silexion warrant was to be adjusted based
on dividing the existing per share exercise price by the Silexion Equity Exchange Ratio. The terms of vesting, exercise and/or settlement,
as applicable, of such converted options, warrants and RSUs were to remain the same following such conversion, except that the vesting
of each Silexion option was to accelerate immediately prior to the Acquisition Merger, such that the New Silexion option into which it
was to be converted was to be fully vested, and all Silexion warrants were to be exercised (on a cashless basis) immediately prior to
the Acquisition Merger.
Immediately
prior to the Closing seven directors were elected to New Silexion’s board of directors, of whom five were designated by Silexion
and two were designated by the SPAC’s sponsor (the “Sponsor”).
The
A&R BCA also required, as a closing condition, the transfer of the remaining outstanding shares of the Chinese Subsidiary held by
GIBF to Silexion prior to the closing of the Business Combination in exchange for the issuance to GIBF of shares of Silexion, which were
converted into ordinary shares of New Silexion in accordance with the Silexion Equity Exchange Ratio upon the closing.
• Silexion’s
shareholders hold approximately 61.55%
of the outstanding voting interests in New Silexion upon the closing of the Transactions;
• Silexion’s
senior management comprise the senior management of New Silexion;
• the
directors nominated by Silexion constitute a majority of the board of directors of New Silexion (five out of seven of the initial directors);
• Silexion’s
operations comprise the ongoing operations of New Silexion; and
• Silexion’s
name is the name used by New Silexion (in replacement of Biomotion Sciences).
Under
the reverse recapitalization accounting method, the Transactions were deemed to be the equivalent of a capital transaction in which Silexion
issued shares for the net assets of the SPAC. The net assets of the SPAC were stated at fair value, with no goodwill or other intangible
assets recorded. Operations prior to the Transactions are those of Silexion.
In
accordance with the applicable guidance to reverse recapitalization, the equity structure has been retroactively adjusted in all comparative
periods up to the date of the Closing (the “Closing Date”), to reflect the number of New Silexion’s ordinary shares,
$0.0001
par value per share (before adjustment for a subsequent reverse share split, which reverse share split is described in Note 1h) issued
to legacy Silexion shareholders in connection with the reverse recapitalization transaction. As such, the shares and corresponding capital
amounts and earnings per share related to legacy Silexion shareholders prior to the reverse recapitalization have been retroactively restated
as shares reflecting the exchange ratio established pursuant to the Transactions. In conjunction with the reverse recapitalization, Silexion’s
ordinary shares underwent a 1-for-3.9829 conversion
(before adjustment for a subsequent reverse share split).
Reconciliation
of the SPAC Merger to the Company's Consolidated Financial Statements
The
following table reconciles the elements of the Transactions to the consolidated statements of cash flows:
In
addition, since the commencement of these events, there have been continued hostilities along Israel’s northern border with Lebanon
(with the Hezbollah terror organization), Israel’s southern border with the Gaza Strip (with the Hamas terrorist organization) and
on other fronts from various extremist groups in region, such as the Houthis in Yemen and various rebel militia groups in Syria and Iraq.
Further, on April 13, 2024, and on October 1, 2024, Iran launched a series of drone and missile strikes against Israel. As of December
31, 2024 a ceasefire agreement has been reached between Israel and Lebanon.
The
Company’s headquarters are located in the central region of Israel. As of the issuance date of these consolidated financial statements,
these conflicts have not had a material impact on the Company’s results of operations or financial position, if at all. The Company
cannot currently predict the intensity or duration of Israel’s war, however, as most of the Company’s trials are not executed
in Israel, the Company does not believe that the war will have any material impact on its ongoing operations. The Company continues to
monitor its ongoing activities and will make any needed adjustments to ensure continuity of its business, while supporting the safety
and well-being of its employees.
Any
additional hostilities involving Israel, or the interruption or curtailment of trade between Israel and its trading partners, could adversely
affect the Company’s operations and results of operations and could make it more difficult for the Company to raise capital.
Since
its inception, the Company (and, prior to the Transactions, its predecessor, Silexion) has devoted substantially all its efforts to research
and development, clinical trials, and capital raising activities. The Company is still in its development and clinical stage and has not
yet generated revenues.
The
Company (or, for those periods prior to the Transactions, its predecessor, Silexion) has incurred losses of $16,519
and $5,108
for the years ended on December 31, 2024 and December 31, 2023, respectively. During the year ended on December 31, 2024, the Company
(including Silexion, for periods prior to the Transactions) had negative operating cash flows of $8,396.
As of December 31, 2024, the Company had cash and cash equivalents of $1,187.
On
January 15, 2025, the Company raised financing of $5,000
by public offering of ordinary shares, pre-funded warrants, and ordinary warrants. Additionally, a total of $864
was received from the exercise of warrants and pre-funded warrants. On January 29, 2025, the Company raised financing of $3,267
by induced warrant exercise transaction (see
Note 16).
The
Company expects to continue incurring losses, and negative cash flows from operations. Management is in the process of evaluating various
financing alternatives, as the Company will need to finance future research and development activities, general and administrative expenses
and working capital through fund raising. However, there is no assurance that the Company will be successful in obtaining such funding.
Under
these circumstances, in accordance with the requirements of ASC 205-40, management has concluded that there is substantial doubt about
the Company’s ability to continue as a going concern for at least 12 months from the date these financial statements are issued.
The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
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