Galmed Pharmaceuticals (GLMD) 6-K 9 Aug 23 2023 Q2 Current report (foreign) Financial data

Cover

Cover	6 Months Ended
	Jun. 30, 2023
Cover [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-36345
Entity Registrant Name	GALMED PHARMACEUTICALS LTD.
Entity Central Index Key	0001595353
Entity Address, Address Line One	16 Tiomkin St.
Entity Address, City or Town	Tel Aviv
Entity Address, Country	IL
Entity Address, Postal Zip Code	6578317

Interim Condensed Consolidated

Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents		$ 1,009	$ 2,016
Restricted Cash		115	114
Marketable debt securities		7,556	11,769
Short term Deposits		765
Other receivables		341	825
Total current assets		9,786	14,724
Operating lease right-of-use assets		129	223
Property and equipment, net		97	114
Investment in SAFE notes			1,500
Investment in associate at fair value		3,265
Total non-current assets		3,491	1,837
Total assets		13,277	16,561
Current liabilities
Trade payables		2,140	2,560
Other payables		583	534
Total current liabilities		2,723	3,094
Non-current liabilities
Operating lease liabilities, net of current portion			44
Total non-current liabilities			44
Ordinary shares par value NIS 0.15 per share; Authorized 20,000,000; Issued and outstanding: 1,680,232 shares as of June 30, 2023 and as of December 31, 2022 ()	[1]	70	70
Additional paid-in capital		200,609	200,138
Accumulated other comprehensive loss		(662)	(745)
Accumulated deficit		(189,463)	(186,040)
Total stockholders’ equity		10,554	13,423
Total liabilities and stockholders’ equity		$ 13,277	$ 16,561
[1]Retroactively adjusted (See Note 4.3)

Interim Condensed Consolidate_2

Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical)	Dec. 31, 2022 ₪ / shares shares
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share | ₪ / shares	₪ 0.15
Common Stock, Shares Authorized	20,000,000
Common Stock, Shares, Outstanding	1,680,232

Interim Condensed Consolidate_3

Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Research and development expenses	$ 809	$ 2,580		$ 1,892	$ 7,376
General and administrative expenses	1,062	1,150		1,981	2,446
Total operating expenses	1,871	3,730		3,873	9,822
Financial expense (income), net	(278)	4		(450)	55
Net loss	$ 1,593	$ 3,734		$ 3,423	$ 9,877
Net loss per share, diluted	$ 0.95	$ 2.25	[1]	$ 2.04	$ 5.85	[1]
Net loss per share, basic	$ 0.95	$ 2.25	[1]	$ 2.04	$ 5.85	[1]
Weighted average number of shares outstanding used in computing net loss per share, basic	1,680,232	1,672,561	[1]	1,680,232	1,672,561	[1]
Weighted average number of shares outstanding used in computing net loss per share, diluted	1,680,232	1,672,561	[1]	1,680,232	1,672,561	[1]
[1]Retroactively adjusted (See Note 4.3)

Interim Condensed Consolidate_4

Interim Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net loss	$ 1,593	$ 3,734	$ 3,423	$ 9,877
Other comprehensive loss:
Net unrealized loss (gain) on available for sale securities	17	366	(83)	811
Comprehensive loss	$ 1,610	$ 4,100	$ 3,340	$ 10,688

Consolidated Statements of Chan

Consolidated Statements of Changes In Stockholders' Equity (Unaudited) - USD ($) $ in Thousands		Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2021		$ 70	$ 198,772	$ (171)	$ (168,174)	$ 30,497
Balance, shares at Dec. 31, 2021	[1]	1,672,561
Stock-based compensation			457			457
Unrealized loss from marketable debt securities				(445)		(445)
Net loss					(6,143)	(6,143)
Balance at Mar. 31, 2022		$ 70	199,229	(616)	(174,317)	24,366
Balance, shares at Mar. 31, 2022	[1]	1,672,561
Balance at Dec. 31, 2021		$ 70	198,772	(171)	(168,174)	30,497
Balance, shares at Dec. 31, 2021	[1]	1,672,561
Net loss						(9,877)
Balance at Jun. 30, 2022		$ 70	199,675	(982)	(178,051)	20,712
Balance, shares at Jun. 30, 2022	[1]	1,672,561
Balance at Mar. 31, 2022		$ 70	199,229	(616)	(174,317)	24,366
Balance, shares at Mar. 31, 2022	[1]	1,672,561
Stock-based compensation			446			446
Unrealized loss from marketable debt securities				(366)		(366)
Net loss					(3,734)	(3,734)
Balance at Jun. 30, 2022		$ 70	199,675	(982)	(178,051)	20,712
Balance, shares at Jun. 30, 2022	[1]	1,672,561
Balance at Dec. 31, 2022		$ 70	200,138	(745)	(186,040)	13,423
Balance, shares at Dec. 31, 2022	[1]	1,680,232
Stock-based compensation			297			297
Unrealized loss from marketable debt securities				100		100
Net loss					(1,830)	(1,830)
Balance at Mar. 31, 2023		$ 70	200,435	(645)	(187,870)	11,990
Balance, shares at Mar. 31, 2023	[1]	1,680,232
Balance at Dec. 31, 2022		$ 70	200,138	(745)	(186,040)	13,423
Balance, shares at Dec. 31, 2022	[1]	1,680,232
Net loss						(3,423)
Balance at Jun. 30, 2023		$ 70	200,609	(662)	(189,463)	10,554
Balance, shares at Jun. 30, 2023		1,680,232
Balance at Mar. 31, 2023		$ 70	200,435	(645)	(187,870)	11,990
Balance, shares at Mar. 31, 2023	[1]	1,680,232
Stock-based compensation			174			174
Unrealized loss from marketable debt securities				(17)		(17)
Net loss					(1,593)	(1,593)
Balance at Jun. 30, 2023		$ 70	$ 200,609	$ (662)	$ (189,463)	$ 10,554
Balance, shares at Jun. 30, 2023		1,680,232
[1]Retroactively adjusted (See Note 4.3).

Interim Condensed Consolidate_5

Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flow from operating activities
Net loss	$ (3,423)	$ (9,877)
Adjustments required to reconcile net loss to net cash used in operating activities
Depreciation and amortization	17	18
Stock-based compensation expense	471	903
Amortization of premium on marketable debt securities	15	35
Change in fair value of SAFE investment	(265)
Interest income from short-term deposits	(16)
Gain from realization of marketable debt securities	(25)	201
Finance expenses	(2)	(42)
Changes in operating assets and liabilities:
Decrease in other accounts receivable	484	511
Decrease in trade payables	(420)	(2,782)
Increase (decrease) in other accounts payable	102	(330)
Net cash used in operating activities	(3,062)	(11,363)
Cash flow from investing activities
Purchase of property and equipment		(3)
Purchase of available for sale securities	(3,218)	10,462
Investment in equity of Onkai	(1,500)
Investment in short term deposits	(750)
Sale of available-for-sale securities	7,524
Net cash provided by (used in) investing activities	2,056	10,459
Decrease in cash and cash equivalents and restricted cash	(1,006)	(904)
Cash and cash equivalents and restricted cash at the beginning of the period	2,130	2,998
Cash and cash equivalents and restricted cash at the end of the period	1,124	2,094
Supplemental disclosure of cash flow information:
Cash received from interest	163	138
Non-cash investment transaction:
Conversion of SAFE into equity of OnKai	$ 1,765

Basis of presentation

Basis of presentation	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of presentation	Note 1 - Basis of presentation Galmed Pharmaceuticals Ltd. (the “Company”) was incorporated in Israel on July 31, 2013 February 2, 2014 The Company holds a wholly-owned subsidiary, Galmed International Ltd., which was incorporated in Malta. The Company also holds two additional wholly-owned subsidiaries, Galmed Research and Development Ltd and Galtopa Therapeutics Ltd., both of which are incorporated in Israel. In July 2023 Galmed Research and Development Ltd established a new wholly-owned subsidiary incorporated under the laws of England and Wales called Galmed Therapeutics UK limited. The Company is a clinical stage biopharmaceutical company primarily focused on the development of its product candidate Aramchol for liver and fibro-inflammatory diseases. The Company has focused almost exclusively on developing Aramchol for the treatment of NASH and is currently developing Aramchol for PSC and exploring the feasibility of developing Aramchol for other fibro-inflammatory indications outside of liver disease. The Company is also collaborating with the Hebrew University in the development of Amilo-5MER. The Company has an operating history limited to pre-clinical and clinical drug development. In May 2023, the Company announced the initiation of a new clinical program to evaluate Aramchol meglumine for the treatment of Primary Sclerosing Cholangitis (PSC). In addition, in May 2023, the Company entered into a definitive agreement with OnKai, Inc. (“Onkai”) for an equity investment in Onkai. See note 3. The Company funded its research and development programs and operations to date primarily through proceeds from private placements and public offerings. The Company currently has no products approved for marketing and has not generated any revenue from product sales to date. As of June 30, 2023, the Company had cash and cash equivalents of $ 1.0 0.8 0.1 7.6 6.2 The Company has incurred operating losses in each year since inception. The Company’s loss attributable to holders of its ordinary shares for the six months period ended June 30, 2023, was approximately $ 3.4 189.5 The Company will need to raise substantial, additional capital to fund its operations and to develop Aramchol for, and beyond its current development stage and any future commercialization, as well as any additional indications. Based on the Company’s current operating plan, the Company’s management currently estimates that its cash position will support its current clinical trials and operations as currently conducted for more than 12 months from the date of issuance of these financial statements. These unaudited interim condensed consolidated financial statements have been prepared as of June 30, 2023, and for the three and six month period then ended. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and the accompanying notes of the Company for the year ended December 31, 2022 that are included in the Company’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission on March 29, 2023 (the “Annual Report on Form 20-F”). The results of operations presented are not necessarily indicative of the results to be expected for the year ending December 31, 2023. GALMED PHARMACEUTICALS LTD. Notes to Interim Condensed Consolidated Financial Statements

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of significant accounting policies	Note 2 - Summary of significant accounting policies The significant accounting policies that have been applied in the preparation of the unaudited consolidated interim financial statements are identical to those that were applied in preparation of the Company’s most recent annual financial statements in connection with its Annual Report on Form 20-F, other than: Investment in Equity Securities The Company entered into an investment in which it holds approximately 24 % of the outstanding shares and voting rights of Onkai. The Company has elected the fair value option allowed by ASC 825, Financial Instruments, with respect to this investment because management believes this approach will better reflect the economics of its equity interest. Under the fair value option, the investment is remeasured at fair value (level 3) at each reporting period through earnings

Investment in Associate at Fair

Investment in Associate at Fair Value	6 Months Ended
	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Investment in Associate at Fair Value	Note 3 – Investment in Associate at Fair Value On May 4, 2023, the Company entered into a definitive agreement (the “Agreement”) for a $ 1.5 Previously, on November, 2023 the Company invested $ 1.5 15 The Company’s investment in OnKai was part of an approximately $ 6 million investment round (the “Investment Round”) with other investors that was led by the Company of which SAFE notes of approximately $ 3.8 were converted into preferred shares. On June 19, 2023, the Investment Round closed. Following the closing of the Investment Round, the Company holds 1,223,535 preferred shares which comprises approximately 23.9 % of the outstanding share capital of OnKai on an as-converted basis. and the Company’s Chief Executive Officer and director, Allen Baharaff serves as a board member of OnKai. Under the terms of the Agreement, during the three-year period following the closing of the Investment Round the Company will have the right to merge with OnKai subject to the approval of the boards of directors of each of the Company and OnKai. The Company is granted certain customary pre-emptive rights as well as registration rights, first refusal rights, co-sale rights and broad based weighted average anti-dilution rights, a board seat, and certain customary protective provisions. In connection with the Agreement, the Company’s wholly-owned subsidiary, Galmed Research and Development Ltd. (“GRD”), entered into a services agreement with OnKai. The Services Agreement provides that GRD will on a non-exclusive basis (i) provide support services to OnKai relating to finance, business development, strategic planning, execution and others; and (ii) lend its experience to OnKai in building a strategy and for the development of treatments for the underserved and that OnKai shall on a non-exclusive basis (i) take part in plan preparation to serve GRD’s vision of developing drugs for the underserved population and (ii) when relevant, design a process on the clinical trial dashboard that could potentially serve GDR’s future trial. Summarized statement of operations (in thousands): Summary of Statement of operations Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Total operating loss $ 573 $ 286 $ 1,171 $ 536 Net loss $ 769 $ 349 $ 1,584 $ 648 GALMED PHARMACEUTICALS LTD. Notes to Interim Condensed Consolidated Financial Statements

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Stockholders’ Equity	Note 4 - Stockholders’ Equity 1. On March 23, 2023, the Company received a ruling from the Israel Tax Authority (“ITA”) confirming the repricing of stock options. This repricing was accounted for as a modification of a share-based payment award. The incremental compensation expense recognized as a result of the modification during the period ended June 30, 2023 was approximately $ 0.1 million. 2. On May 15, 2023 the Company effected a reverse share split of the Company’s ordinary shares at the ratio of 1-for-15, such that each fifteen (15) ordinary shares, par value NIS 0.01 per share, shall be consolidated into one (1) ordinary share, par value NIS 0.15. As a result, all share and per share amounts were adjusted retroactively for all periods presented in these financial statements. 3. In July 2023, we completed a public offering resulting in net proceeds of approximately $ 6.2

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Note 5 – Subsequent Events On July 18, 2023, the Company sold to investors in a public offering (i) 380,000 5,220,000 5,220,000 5,600,000 5,600,000 1.25 1.249 The Pre-Funded Warrants are immediately exercisable at an exercise price of $ 0.001 1.25 6.2 As of August 4, 2023, a total of 2,121,041 2,121,041

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Investment in Equity Securities	Investment in Equity Securities The Company entered into an investment in which it holds approximately 24 % of the outstanding shares and voting rights of Onkai. The Company has elected the fair value option allowed by ASC 825, Financial Instruments, with respect to this investment because management believes this approach will better reflect the economics of its equity interest. Under the fair value option, the investment is remeasured at fair value (level 3) at each reporting period through earnings

Investment in Associate at Fa_2

Investment in Associate at Fair Value (Tables)	6 Months Ended
	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Summary of Statement of operations	Summary of Statement of operations Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Total operating loss $ 573 $ 286 $ 1,171 $ 536 Net loss $ 769 $ 349 $ 1,584 $ 648

Basis of presentation (Details

Basis of presentation (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Jul. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Date Of Incorporation		Jul. 31, 2013
Operations Commenced Date		Feb. 02, 2014
Cash and cash equivalents		$ 1,009	$ 2,016
Short-term deposits		765
Restricted cash		115	114
Marketable securities debt		7,600
Proceeds from issuance of initial public offering	$ 6,200
Profit loss		3,400
Retained earnings accumulated deficit		$ 189,463	$ 186,040

Summary of significant accoun_3

Summary of significant accounting policies (Details Narrative)	Jun. 30, 2023
Onkai Inc [Member]
Equity Method Investment, Ownership Percentage	24%

Summary of Statement of operati

Summary of Statement of operations (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Net loss	$ (1,593)	$ (1,830)	$ (3,734)	$ (6,143)	$ (3,423)	$ (9,877)
Operating Income (Loss) [Member]
Total operating loss	573		286		1,171	536
Gain (Loss) on Investments [Member]
Net loss	$ 769		$ 349		$ 1,584	$ 648

Investment in Associate at Fa_3

Investment in Associate at Fair Value (Details Narrative) - USD ($) $ in Millions				6 Months Ended
	Nov. 30, 2023	Jun. 19, 2023	May 04, 2023	Jun. 30, 2023
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Investment				$ 6
Onkai Inc [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Value conversion			$ 1.5	$ 3.8
Stock Issued During Period, Shares, Other		1,223,535
Converted basis		23.90%
Onkai Inc [Member] | Subsequent Event [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Value conversion	$ 1.5
Capital stock discount rate	15%

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($) $ in Millions				1 Months Ended
	Jul. 18, 2023	Jun. 30, 2023	May 15, 2023	Jul. 31, 2023
Subsequent Event [Line Items]
Other Expenses		$ 0.1
Stockholders' Equity Note, Stock Split			the Company effected a reverse share split of the Company’s ordinary shares at the ratio of 1-for-15, such that each fifteen (15) ordinary shares, par value NIS 0.01 per share, shall be consolidated into one (1) ordinary share, par value NIS 0.15.
Proceeds from issuance of initial public offering				$ 6.2
Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds from issuance of initial public offering	$ 6.2

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended
	Jul. 18, 2023	Jul. 31, 2023	Aug. 04, 2023
Subsequent Event [Line Items]
Proceeds from issuance of initial public offering		$ 6.2
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of ordinary shares	380,000
Proceeds from issuance of initial public offering	$ 6.2
Subsequent Event [Member] | Prefunded Warrants [Member]
Subsequent Event [Line Items]
Shares issued price per share	$ 1.249
Shares issued price per share	$ 0.001
Subsequent Event [Member] | Prefunded Warrants [Member] | Warrant [Member]
Subsequent Event [Line Items]
Stock and warrants issued during period shares	5,220,000		2,121,041
Subsequent Event [Member] | Prefunded Warrants [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Stock and warrants issued during period shares	5,220,000		2,121,041
Subsequent Event [Member] | Investor Warrants [Member]
Subsequent Event [Line Items]
Shares issued price per share	$ 1.25
Shares issued price per share	$ 1.25
Subsequent Event [Member] | Investor Warrants [Member] | Warrant [Member]
Subsequent Event [Line Items]
Stock and warrants issued during period shares	5,600,000
Subsequent Event [Member] | Investor Warrants [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Stock and warrants issued during period shares	5,600,000