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Notable Labs, Ltd. (NTBL)·Q1 2023 Earnings Summary

Executive Summary

  • VBL Therapeutics (pre‑merger entity of Notable Labs, Ltd.) reported Q1 2023 net loss of $2.64M (basic/diluted loss per share $0.03) with no revenues, reflecting sharp cost reductions and a $0.61M capital gain from the March sale of the Modi’in facility . Cash, cash equivalents, short‑term deposits and restricted cash totaled ~$26.5M at March 31, 2023 .
  • Management is focused on closing the merger with Notable in Q3 2023; Form S‑4 was filed May 11, 2023 and closing is contingent on SEC review and shareholder approvals . The FY 2022 update indicated the combined company is expected to have runway into 2025 post‑closing .
  • Operating expenses fell materially YoY as R&D net declined to $0.06M (vs. $7.46M in Q1 2022) driven by program discontinuations, workforce reduction, and reversal of stock‑based comp; G&A was stable at ~$3.24M .
  • Wall Street consensus estimates via S&P Global were unavailable for NTBL, so beats/misses vs. estimates cannot be assessed (consensus unavailable).

What Went Well and What Went Wrong

What Went Well

  • Executed non‑dilutive asset monetization: completed sale of Modi’in manufacturing facility for $7.1M, contributing a $0.61M capital gain in Q1 and bolstering cash toward merger closing conditions .
  • Cost discipline: R&D net fell to $0.06M and total operating expenses to ~$2.7M, sharply improving YoY loss from $10.43M to $2.64M .
  • Strategic progress toward merger: “We made continued progress... focused on closing the announced merger with Notable... expect to close the merger in the third quarter of 2023,” said CEO Prof. Dror Harats .

What Went Wrong

  • No operating revenue: revenues were $0 vs. $0.11M in Q1 2022 due to termination of the NanoCarrier license; gross profit was negative given nominal cost of revenues .
  • Ongoing listing/compliance overhangs and structural changes: loss of foreign private issuer status and Nasdaq minimum bid price compliance risks outlined in prior filings remain an uncertainty .
  • Strategic uncertainty around VB‑601: management plans to monetize the asset rather than internally develop it, leaving timing and proceeds contingent on third‑party execution .

Financial Results

Income Statement and EPS vs. Prior Year and Prior Quarters

MetricQ3 2022Q4 2022Q1 2023
Revenue ($USD Millions)$0.481 N/A (quarter not disclosed)$0.000
Gross Profit ($USD Millions)$0.418 N/A$(0.002)
R&D Expenses, Net ($USD Millions)$5.947 N/A$0.056
G&A Expenses ($USD Millions)$3.746 N/A$3.239
Capital Gain/Loss ($USD Millions)—N/A$(0.610)
Operating Loss ($USD Millions)$9.275 N/A$2.687
Net Loss ($USD Millions)$9.170 N/A$2.639
EPS (Basic & Diluted, $USD)$(0.12) N/A$(0.03)
Weighted Avg Shares (Millions)77.630 N/A77.800

Notes:

  • Q4 2022 quarterly detail was not disclosed in filings; FY 2022 was provided but not a discrete Q4 breakdown .

Year-over-Year (Q1 2023 vs. Q1 2022)

MetricQ1 2022Q1 2023YoY Change
Revenue ($USD Millions)$0.113 $0.000 $(0.113)
R&D Expenses, Net ($USD Millions)$7.460 $0.056 $(7.404)
G&A Expenses ($USD Millions)$3.162 $3.239 $0.077
Operating Loss ($USD Millions)$10.564 $2.687 $(7.877)
Net Loss ($USD Millions)$10.428 $2.639 $(7.789)
EPS (Basic & Diluted, $USD)$(0.13) $(0.03) $0.10

Drivers:

  • Revenue decline reflects termination of NanoCarrier license; R&D decline driven by program discontinuations and reversal of stock‑based compensation; capital gain from asset sale reduced operating loss .

KPIs and Balance Sheet Highlights

KPIQ3 2022Q1 2023
Cash, Cash Equivalents, Short‑term Deposits & Restricted ($USD Millions)$27.7 $26.5
Working Capital ($USD Millions)$17.8 $19.2
Total Assets ($USD Millions)$35.526 $28.113
Total Equity ($USD Millions)$25.305 $19.899

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Merger timing2023Announced Feb 23, 2023; close expected Q2 2023 Close expected Q3 2023 (subject to SEC S‑4 review and shareholder approvals) Deferred
Cash runway (standalone VBL)Next 12 monthsAt least 12 months from filing date At least 12 months from May 15, 2023 filing Maintained
Cash runway (combined company)Post‑merger—Combined entity expected to have runway into 2025 New (post‑merger)
R&D/Opex trajectoryFY 2023—R&D expected to be significantly less; G&A to decrease with workforce reduction but higher legal/admin related to merger New directional guidance
VB‑6012023Initiate Phase 1 in Q1 2023 (subject to process) Plan to monetize VB‑601 rather than pursue internal development Strategic pivot

Earnings Call Themes & Trends

No Q1 2023 earnings call transcript was found; themes are drawn from the Q1 2023 press release and 10‑Q, plus prior quarter communications.

TopicPrevious Mentions (Q3 2022, Q4 2022)Current Period (Q1 2023)Trend
Merger with NotableAnnounced in March 2023 FY update; combined company to be named Notable Labs, Ltd.; expected cash runway into 2025 S‑4 filed May 11; expected close in Q3 2023 subject to approvals Advancing toward close
VB‑601 strategyFiled for first‑in‑human Phase 1; initiation targeted Q1 2023 (subject to strategic process) Plan to monetize VB‑601 rather than develop internally Pivot to monetization
Facility monetizationExploring strategic options; asset value testing post OVAL discontinuation Completed facility sale for $7.1M; capital gain recognized Executed
Cash runwayAt least 12 months At least 12 months; proceeds support merger closing conditions Maintained; supported by sale
Opex disciplineElevated R&D and G&A in Q3 2022 R&D net minimal; G&A stable; total opex ~ $2.7M Decreasing opex
Listing/complianceNasdaq minimum bid price deficiency; risk of delisting Loss of foreign private issuer status; domestic reporting regime Ongoing compliance focus

Management Commentary

  • “During the first quarter, we made continued progress... and are focused on closing the announced merger with Notable... expect to close the merger in the third quarter of 2023” — Prof. Dror Harats, M.D., CEO .
  • “The successful closing of the sale of VBL’s manufacturing facility for $7.1 million has provided an influx of non‑dilutive capital that can be employed by the combined entity to advance its pipeline” — FY 2022 update .

Q&A Highlights

  • No Q1 2023 earnings call transcript was available; no analyst Q&A or clarifications to report (transcript unavailable).

Estimates Context

  • Consensus EPS and revenue estimates via S&P Global for NTBL were unavailable due to missing SPGI/CIQ mapping at the time of query; as a result, comparisons to Street estimates could not be performed. Values retrieved from S&P Global were unavailable.

Key Takeaways for Investors

  • Near‑term catalyst path is merger execution: S‑4 effectiveness and shareholder approvals are gating items; closing targeted for Q3 2023 .
  • Balance sheet supports transaction conditions: ~$26.5M cash and equivalents, bolstered by the $7.1M facility sale; working capital ~$19.2M .
  • Opex reset materially lowers burn: R&D net fell to ~$0.06M as programs wound down; G&A held ~flat; net loss shrank to $2.64M YoY — supportive of preserving cash into merger close.
  • Asset strategy shift: VB‑601 moved from internal development to monetization plan, de‑risking near‑term spend but creating execution dependence on external counterparty .
  • Post‑merger runway: combined company expected to have cash runway into 2025, positioning for oncology pipeline execution using Notable’s PPMP .
  • Listing/compliance remains a watch item: prior Nasdaq bid price deficiency and transition to U.S. domestic reporting increase governance and compliance costs .
  • Trading implications: stock likely sensitive to merger timeline announcements (S‑4 effectiveness, meeting dates) and any VB‑601 monetization milestones; lack of revenue and absence of estimates reduces near‑term earnings‑driven trading setups .