| General and Basis for Presentation | Note 1 - General and Basis for Presentation Note 1 — General
A. NeuroSense Therapeutics Ltd. (“NeuroSense” or the “Company”) was
incorporated in Israel on February 13, 2017. NeuroSense is a clinical-stage pharmaceutical company focused on discovering and
developing treatments for patients suffering from debilitating neurodegenerative diseases. The Company’s lead product
candidate, PrimeC, is a novel oral formulation of a fixed dose combination composed of a specific ratio and doses of two
FDA-approved drugs. In addition to PrimeC, the Company has
initiated research and development efforts in Alzheimer’s disease and Parkinson’s disease, with a similar strategy of combined
products. The Company’s ordinary shares and
warrants began trading on the Nasdaq Capital Market on December 9, 2021 under the ticker symbols “NRSN” and “NRSNW,”
respectively.
B. The Company currently has no products approved for sale, and
the Company’s operations have been funded primarily by its shareholders. To date, the Company has generated no sales or revenues,
has incurred losses and expects to incur significant additional losses due to the continuing focus on the research, development, clinical
activities of its product candidates, preclinical programs, business development, organizational structure and to advance the programs
within the Company’s pipeline. Consequently, its operations are subject to all the risks inherent in the establishment of a pre-revenue
business enterprise as well as those risks associated with a company engaged in the research and development of pharmaceutical compounds. Based on current expected level of
operating expenditures, the Company’s cash resources as at June 30, 2023 shall not be sufficient to fund the Company’s operations
for a period of at least 12 months from the approval of these interim consolidated financial statements, assuming that the Company will
continue its development plan in accordance with the original pipeline and without delaying or slowing down the progress of its plans.
The Company will require additional cash to fund the execution of its mid-term and long-term development program. The Company anticipates
raising additional funds through public or private sales of debt or equity securities, collaborative arrangements, or some combination
thereof. Whilst management is progressing with its plans to secure external financing, these still require approval by third parties,
and accordingly, there is no assurance that any such arrangement will be entered into or that financing will be available when needed
in order to allow it to continue its operations, or if available, on terms favorable or acceptable to it. In the event financing is not obtained,
the Company may pursue cost cutting measures or may be required to delay, reduce the scope of, or eliminate any of its development programs
or clinical trials, these events could have a material adverse effect on its business. These factors raise significant doubt about the
Company ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to recoverability
and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company
be unable to continue as a going concern. |
