UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
Amendment No. 2
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): October 16,
(Exact name of registrant as specified in charter)
| Not Applicable | ||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s
telephone number, including area code:
Vascular Biogenics Ltd.
8 HaSatat St.
Modi’in, Israel 7178106
(Former name or former address, if changed since last report)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| The
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging
growth company
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Explanatory Note
Introductory Note
On October 16, 2023, Notable Labs, Ltd., formerly known as “Vascular Biogenics Ltd.” (the “Company”), filed a Current Report on Form 8-K with the Securities and Exchange Commission (the “Original Form 8-K”) reporting, among other items, that on October 16, 2023 the Company completed its business combination with Notable Labs, Inc. (“Notable”) and Vibrant Merger Sub, Inc., a wholly-owned subsidiary of the Company (“Merger Sub”) in accordance with the terms of the Agreement and Plan of Merger, dated as of February 22, 2023 (the “Merger Agreement”), by and among the Company, Notable and Merger Sub. Pursuant to the Merger Agreement, Merger Sub merged with and into Notable, with Notable surviving as a wholly owned subsidiary of the Company (the “Merger”). Amendment No. 1 on Form 8-K/A (“Amendment No. 1”) amended the Original Form 8-K to provide (i) the audited financial statements of Notable as of and for the years ended December 31, 2022 and 2021, (ii) the unaudited financial statements of Notable as of September 30, 2023 and for the three and nine months ended September 30, 2023 and 2022, and (iii) the unaudited pro forma condensed combined balance sheet as of September 30, 2023 and the unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2023 and the year ended December 31, 2022. Such financial information was excluded from the Original Form 8-K in reliance on the instructions thereto.
Item 9.01. Financial Statements and Exhibits.
(a) Financial Statements of Businesses or Funds Acquired
Notable’s audited financial statements as of and for the years ended December 31, 2022 and 2021 and the accompanying notes thereto are filed herewith as Exhibit 99.2 to this Current Report on Form 8-K/A.
Notable’s unaudited financial statements as of September 30, 2023 and for the three and nine months ended September 30, 2023 and 2022 and the accompanying notes thereto are filed herewith as Exhibit 99.3 to this Current Report on Form 8-K/A.
(b) Pro Forma Financial Information
The unaudited pro forma condensed combined balance sheet as of September 30, 2023 and the unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2023 and the year ended December 31, 2022 and the accompanying notes thereto are filed herewith as Exhibit 99.4 to this Current Report on Form 8-K/A.
(d) Exhibits
| * | Management contract or compensatory plan or arrangement. |
| + | Certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the SEC upon request, provided, however, that the Company may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any schedule so furnished. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NOTABLE LABS, LTD. | ||
| Date: November 29, 2023 | By: | /s/ Thomas A. Bock |
| Name: | Thomas A. Bock | |
| Title: | Chief Executive Officer |
Exhibit 99.3
NOTABLE LABS, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts )
(unaudited)
| September 30, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Prepaid expenses and other current assets | ||||||||
| Total current assets | ||||||||
| Property and equipment, net | ||||||||
| Finance lease right-of-use assets, net | ||||||||
| Operating lease right-of-use assets | ||||||||
| Investment in SAFE | ||||||||
| Other assets | ||||||||
| Total assets | $ | $ | ||||||
| Liabilities, redeemable convertible preferred stock and | ||||||||
| stockholders’ deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued expenses and other current liabilities | ||||||||
| Accounts payable and accrued expenses - related party | ||||||||
| Finance lease liabilities, current | ||||||||
| Operating lease liabilities, current | ||||||||
| Total current liabilities | ||||||||
| Finance lease liabilities, net of current amount | ||||||||
| Operating lease liabilities, net of current amount | ||||||||
| SAFE notes, net of issuance costs of $ | ||||||||
| Redeemable convertible preferred stock warrant liability | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies | ||||||||
| Series A redeemable convertible preferred stock, par value $, shares authorized as of September 30,
2023 and December 31, 2022, and shares issued and outstanding as of September 30, 2023 and December 31, 2022;
aggregate liquidation preference of $ | ||||||||
| Series B redeemable convertible preferred stock, par value $, shares authorized as of September 30, 2023 and
December 31, 2022, and shares issued and outstanding as of September 30, 2023 and December 31, 2022; aggregate
liquidation preference of $ | ||||||||
| Series C redeemable convertible preferred stock, par value $, shares authorized as of September 30, 2023 and
December 31, 2022, and shares issued and outstanding as of September 30, 2023 and December 31, 2022; aggregate
liquidation preference of $ | ||||||||
| Stockholders’ deficit | ||||||||
| Common stock, $ par value; shares authorized as of September 30, 2023 and December 31, 2022 and shares issued and outstanding as of September 30, 2023 and shares issued and outstanding as of December 31, 2022 | ||||||||
| Additional paid in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total stockholders’ deficit | ( | ) | ( | ) | ||||
| Total liabilities, redeemable convertible preferred stock and stockholders’ deficit | $ | $ | ||||||
See the accompanying notes to the condensed consolidated financial statements.
NOTABLE LABS, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
(unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Services revenue | $ | $ | $ | $ | ||||||||||||
| Cost of services | ||||||||||||||||
| Gross profit | ||||||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | ||||||||||||||||
| General and administrative | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income, net | ||||||||||||||||
| Net income (loss) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
| Net income (loss) per share, basic and diluted | $ | $ | ) | $ | ) | $ | ) | |||||||||
| Weighted-average common shares outstanding, basic and diluted | ||||||||||||||||
See the accompanying notes to the condensed consolidated financial statements.
NOTABLE LABS, INC.
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Deficit
(in thousands, except share amounts)
(unaudited)
For the Three and Nine Months Ended September 30, 2023
| Redeemable Convertible | Common | Additional | Total | |||||||||||||||||||||||||
| Preferred Stock | Stock | Paid-In | Accumulated | Stockholders' | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
| Balance December 31, 2022 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
| Stock-based compensation | - | - | ||||||||||||||||||||||||||
| Net loss | - | - | ( | ) | ( | ) | ||||||||||||||||||||||
| Balance March 31, 2023 | ( | ) | ( | ) | ||||||||||||||||||||||||
| Exercise of common stock options | ||||||||||||||||||||||||||||
| Stock-based compensation | - | - | ||||||||||||||||||||||||||
| Net loss | - | - | ( | ) | ( | ) | ||||||||||||||||||||||
| Balance June 30, 2023 | ( | ) | ( | ) | ||||||||||||||||||||||||
| Stock-based compensation | - | - | ||||||||||||||||||||||||||
| Net loss | - | - | ||||||||||||||||||||||||||
| Balance September 30, 2023 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
For the Three and Nine Months Ended September 30, 2022
| Redeemable Convertible | Common | Additional | Total | |||||||||||||||||||||||||
| Preferred Stock | Stock | Paid-In | Accumulated | Stockholders' | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
| Balance December 31, 2021 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
| Exercise of common stock options | - | - | ||||||||||||||||||||||||||
| Stock-based compensation | - | - | ||||||||||||||||||||||||||
| Net loss | - | - | ( | ) | ( | ) | ||||||||||||||||||||||
| Balance March 31, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||
| Issuance of Series C-1 redeemable convertible preferred stock, net of issuance costs of $ | - | $ | $ | $ | ||||||||||||||||||||||||
| Exercise of common stock options | ||||||||||||||||||||||||||||
| Stock-based compensation | - | - | ||||||||||||||||||||||||||
| Net loss | - | - | ( | ) | ( | ) | ||||||||||||||||||||||
| Balance June 30, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||
| Issuance of Series C-1 redeemable convertible preferred stock, net of issuance costs of $ | - | |||||||||||||||||||||||||||
| Issuance of Series C-2 redeemable convertible preferred stock, in exchange for SAFE agreement net of allocated proceeds to the Series C convertible C redeemable preferred stock warrant liability of $ | - | |||||||||||||||||||||||||||
| Issuance of common stock through conversion of Series A redeemable convertible preferred stock | ( | ) | ( | ) | ||||||||||||||||||||||||
| Issuance of common stock through conversion of Series B redeemable convertible preferred stock | ( | ) | ( | ) | ||||||||||||||||||||||||
| Stock-based compensation | - | - | ||||||||||||||||||||||||||
| Net loss | - | - | ( | ) | ( | ) | ||||||||||||||||||||||
| Balance September 30, 2022 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
See the accompanying notes to the condensed consolidated financial statements.
NOTABLE LABS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)Cash
(unaudited)
| For the Nine Months Ended September 30, | ||||||||
| 2023 | 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | ||||||||
| Stock-based compensation | ||||||||
| Non-cash operating leases | ||||||||
| Gain on sale of marketable securities | ||||||||
| Gain from PPP loan forgiveness | ( | ) | ||||||
| Change in fair value of SAFE notes | ||||||||
| Change in fair value of SAFE and redeemable convertible preferred stock warrant liability | ( | ) | ( | ) | ||||
| Change in operating assets and liabilities | ||||||||
| Prepaid expenses | ||||||||
| Other assets | ||||||||
| Accounts payable | ( | ) | ||||||
| Accrued expenses and other current liabilities | ( | ) | ||||||
| Operating lease liabilities | ( | ) | ( | ) | ||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchases of property and equipment | ( | ) | ( | ) | ||||
| Purchases of marketable securities | ( | ) | ||||||
| Proceeds from maturities of marketable securities | ||||||||
| Proceeds from sales of marketable securities | ||||||||
| Net cash (used in) provided by investing activities | ( | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from employee stock options | ||||||||
| Proceeds from issuance of redeemable convertible preferred stock and warrants, net of issuance costs | ||||||||
| Repayment of finance lease liabilities | ( | ) | ||||||
| Proceeds from the issuance of the SAFE agreement | ||||||||
| Net cash provided by financing activities | ||||||||
| Net increase in cash and cash equivalents | ( | ) | ||||||
| Cash and cash equivalents at the beginning of the year | ||||||||
| Cash and cash equivalents at the end of the period | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | ||||||||
| Issuance of finance lease liability for finance lease right-of-use asset | $ | $ | ||||||
| Issuance of operating lease liability for operating lease right-of-use asset | $ | $ | ||||||
| Fair value allocated at issuance to Series C warrants | $ | $ | ||||||
| Series C redeemable convertible preferred stock issuance costs in accrued expenses | $ | $ | ||||||
| Conversion of Series A and Series B redeemable convertible preferred stock to common stock | $ | $ | ||||||
See the accompanying notes to the condensed consolidated financial statements.
NOTE 1 – ORGANIZATION
Description of Business
Notable Labs, Inc. (“Notable” or the “Company”) and its wholly owned subsidiary is an emerging tech-bio therapeutics company dedicated to the development and commercialization of a predictive precision medicine platform and products that treat various forms of cancer. The Company was incorporated in Delaware in June 2014 and is located in Foster City, California.
Merger with Vascular Biogenics, Ltd.
On February 22, 2023, Notable entered into a Merger Agreement (the “Merger Agreement”) with Vascular Biogenics, Ltd., an Israeli corporation (“VBL”), and Vibrant Merger Sub, Inc., a Delaware corporation and VBL’s direct, wholly-owned subsidiary, pursuant to which, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Notable merged with and into Merger Sub at the effective time (“Effective Time”), with Notable continuing after the merger as the surviving corporation and VBL’s wholly-owned subsidiary (such transaction, the “Merger”).
On October 16, 2023, Notable closed the Merger with VBL. In conjunction with the Merger, the Company changed its name from “Vascular Biogenics Ltd.” to “Notable Labs, Ltd.” (the “Name Change”).
At
the Effective Time, each outstanding share of Notable capital stock was converted into the right to receive VBL ordinary shares, under
the exchange ratio formula in the Merger Agreement, with former Notable securityholders owning approximately
Also
on October 16, 2023, in connection with, and prior to completion of, the Merger, the Company effected a
Following the completion of the Merger, the business of Notable became the business conducted by the Company, which is a clinical-stage platform therapeutics company developing predictive precision medicines for patients with cancer.
Upon closing of the Merger, the board of directors of the Company consists of seven directors, with one director designated by VBL. Following the closing of the Merger, the Company is being led by Notable’s chief executive officer and executive management team.
Since incorporation through September 30, 2023, Notable Labs, Ltd. and its subsidiaries (hereinafter referred to as “the Post-Merger Company”) incurred losses and negative cash flows from operations mainly attributable to its development efforts and has an accumulated deficit. The Post-Merger Company has financed its operations primarily through the issuance of Preferred Shares and Simple Agreements for Future Equity (“SAFE”) shares and through the cash inflow as a result of the Merger completed on October 16, 2023. As of the issuance date of these consolidated financial statements, Notable Labs, Ltd.’s cash and investments provide sufficient resources to fund its operations through at least the next 12 months. In order to develop and commercialize any future product candidates if they are granted regulatory approval, Notable Labs, Ltd. is required to obtain further funding through public or private offerings, debt financings, collaboration, licensing arrangements or other sources. Adequate additional funding may not be available to Notable Labs, Ltd. on acceptable terms, or at all. If Notable Labs, Ltd. is unable to raise capital when needed or on attractive terms, it may be forced to delay, reduce or eliminate its research and development programs or commercialization and manufacturing efforts.
NOTE 2 – BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of Notable have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. These unaudited interim condensed consolidated financial statements should therefore be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2022. In the opinion of management, all adjustments (of a normal recurring nature) considered necessary for the fair statement of the results for the interim periods presented have been included. Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year.
The condensed consolidated financial statements include the accounts of Notable and its wholly owned subsidiary, all of which are denominated in US dollars. All intercompany balances and transactions have been eliminated in consolidation.
NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and calculation methods applied in the preparation of the unaudited condensed consolidated interim financial statements are consistent with those applied in the preparation of the annual financial statements as of December 31, 2022 and for the year then ended.
Revenue Recognition
In accordance with FASB ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue upon transfer of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of FASB ASC 606, the Company performs the following five steps:
| 1. | Identify the contract with the customer. | |
| 2. | Identify the performance obligations in the contract. | |
| 3. | Determine the transaction price. | |
| 4. | Allocate the transaction price to the performance obligations in the contract. | |
| 5. | Recognize revenue as (or when) the performance obligations are satisfied. |
For services performed, revenue is recognized at a point in time when the services are performed. However, for certain contracts, revenue is recognized over time as the customer simultaneously receives and consumes the benefits of performance as the Company performs the service. For license agreements, each contract is reviewed to determine the portion of the revenue that should be recognized at the point in time that the license is transferred to the customer and the portion of the revenue to be recognized over time.
Cost of Services
Cost of services represents costs directly related to the services performed. Cost of services is primarily comprised of cost of samples, labor.
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP generally requires management to make certain estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. The Company regularly evaluates estimates and assumptions related to assets and liabilities, and disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. Areas where management uses subjective judgments include, but are not limited to, measurement of lease liabilities and right of use assets, impairment of long-lived assets, stock-based compensation, accrued research and development costs, and redeemable convertible preferred stock warrant liability in the accompanying condensed consolidated financial statements. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions.
Segments
The
Company operates and manages its business as
Recently Adopted Accounting Pronouncements
As of September 30, 2023, there are no recently adopted accounting standards which would have a material effect on the Company’s financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted
As of September 30 2023, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements.
NOTE 4 – FAIR VALUE MEASUREMENTS
The following table sets forth the Company’s financial liabilities that are measured at fair value on a recurring basis by level with the fair value hierarchy (in thousands):
| As of September 30, 2023 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
| Liabilities | ||||||||||||||||
| SAFE notes | $ | $ | $ | $ | ||||||||||||
| Preferred stock warrant liability | $ | $ | $ | $ | ||||||||||||
| As of December 31, 2022 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
| Liabilities | ||||||||||||||||
| Preferred stock warrant liability | $ | $ | $ | $ | ||||||||||||
There
were no transfers between Levels 1, 2, or 3 during the nine months ended September 30, 2023 and the year ended December 31, 2022. Additionally,
there were
The value of the warrants was based on the estimated value of the warrant using the Black-Scholes model as of September 30, 2023. The following assumptions were used in determining the fair value of the warrants:
| Risk Free interest rate | % | |||
| Expected life (years) | ||||
| Expected volatility | % | |||
| Annual dividend yield | % |
In
connection with the Merger Agreement, the Company entered into SAFEs with certain investors by which the Company received $
On
June 28, 2023, Notable entered into Simple Agreements for Future Equity (the “D-2 SAFEs”) with certain investors who committed
to purchase shares of Series D-2 Preferred Stock pursuant to the Series D Purchase Agreement. The D-2 SAFEs will convert into shares
of Series D-2 Preferred Stock without a discount and reduce the purchase price owed by each such investor under the Series D Purchase
Agreement on a dollar-for-dollar basis. In the event the Merger does not occur, the Series D-2 SAFEs will remain outstanding. Notable
received approximately $
The following is a summary of the Company’s SAFE warrant liability and SAFE notes activity for the nine months ended September 30, 2023:
| Redeemable convertible preferred stock warrant liability | SAFE notes | |||||||
| Balance as of December 31, 2022 | $ | $ | ||||||
| Fair value of SAFE notes at issuance | ||||||||
| Change in fair value | ( | ) | ||||||
| Balance as of September 30, 2023 | $ | $ | ||||||
The change in the fair value of the redeemable convertible preferred stock warrant liability resulted from a reduction in the value per warrant based on the fair market valuation of the warrants as of September 30, 2023. The reduction primarily related to the price of the underlying stock being substantially less than previously expected.
The
fair value of SAFE notes at issuance consists of the $
NOTE 5 – BALANCE SHEET COMPONENTS
The following table presents the components of prepaid expenses and other current assets as of September 30, 2023 and December 31, 2022 (in thousands):
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Accounts receivable | $ | $ | ||||||
| Employee retention credit | ||||||||
| Prepaid expenses | ||||||||
| Prepaid benefits | ||||||||
| Prepaid clinical expenses | ||||||||
| Total prepaid expenses and other current assets | $ | $ | ||||||
During
fiscal years 2020 and 2021, the Company took advantage of the relief provisions provided by the U.S. government in response to COVID-19
under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The CARES Act provides an employee retention credit
(“Employee Retention Credit”), which is a refundable tax credit against certain employment taxes dependent on certain qualified
wages paid to employees through fiscal year 2021. The Company qualifies for the tax credit under the CARES Act and continued to receive
additional tax credits under the additional relief provisions for qualified wages through the end of 2021. The Company accounts for these
labor related tax credits as a reduction to the expense that they are intended to compensate in the period in which the corresponding
expense is incurred and there is reasonable assurance the Company will both receive the tax credits and comply with all conditions attached
to the tax credits. As of September 30, 2023 and December 31, 2022, $
Property and Equipment, Net
The following table presents the components of property and equipment, net, as of September 30, 2023 and December 31, 2022 (in thousands):
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Computer equipment | $ | $ | ||||||
| Laboratory equipment | ||||||||
| Furniture and office equipment | ||||||||
| Leasehold improvements | ||||||||
| Less: accumulated depreciation | ( |
) | ( |
) | ||||
| Total property and equipment, net | $ | $ | ||||||
Depreciation
expense was approximately $
Investment in SAFE
In
October 2021, the Company entered into a simple agreement for future equity (“Oncoheroes SAFE”) agreement for $
Accrued Expenses and Other Current Liabilities
The following table presents the components of accrued expenses and other current liabilities as of September 30, 2023 and December 31, 2022 (in thousands):
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Accrued expenses | $ | |||||||
| Accrued employee expenses | ||||||||
| Accrued bonuses | ||||||||
| Total accrued expenses and other current liabilities | $ | $ | ||||||
NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES RELATED PARTIES
As of September 30, 2023 and December 31, 2022, the Company owed related parties the following (in thousands):
| September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
| Accounts | Accrued | Accounts | Accrued | |||||||||||||||||||||
| Payable | Expenses | Total | Payable | Expenses | Total | |||||||||||||||||||
| Chairman of Board of Directors | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
For
consulting services with the Chairman of the Board, the Company recorded general and administrative expenses of $
NOTE 7 – CO-DEVELOPMENT AND LICENSE AGREEMENTS
Oncoheroes Agreement
In September 2021, the Company entered into an Exclusive License Agreement with Oncoheroes (the “Oncoheroes Agreement”) whereby the Company obtained worldwide exclusive development and commercialization rights in the small molecule volasertib for uses relating to certain types of cancer in adults. Under the terms of the Oncoheroes Agreement, Oncoheroes retains the right to develop and commercialize volasertib for cancers not licensed to the Company.
Under
the terms of the agreement, the Company is obligated to make additional clinical and regulatory milestone payments up to a total of $
The
Company also entered a SAFE agreement with Oncoheroes in October 2021 for $
CicloMed Agreement
In
July 2021, the Company entered into a Co-Development and Profit-Sharing Agreement with CicloMed LLC (“CicloMed”) (the “CicloMed
Agreement”) regarding use of the Company’s precision oncology diagnostic test in the research and development of CicloMed’s
CicloProx product for the treatment of acute myeloid leukemia. Under the terms of the co-development agreement, CicloMed holds the primary
responsibility for executing clinical trial operations while Notable is primarily focused on optimizing Notable’s predictive precision
medicine platform. Both parties will equally share the costs associated with the on-going clinical trial incurred after the effective
date. In the event a CicloProx product is commercially developed and sold, the parties will share in the net proceeds. The Company accrued
amounts relative to this agreement and based on the agreement received a benefit of $
NOTE 8 – SIMPLE AGREEMENTS FOR FUTURE EQUITY NOTES
The
Company entered into Simple Agreements for Future Equity (the “SAFEs”) with certain investors, during the nine months ended
September 30, 2023, by which the Company received $
On
June 28, 2023, Notable entered into Simple Agreements for Future Equity (the “D-2 SAFEs”) with certain investors who committed
to purchase shares of Series D-2 Preferred Stock pursuant to the Series D Purchase Agreement. The D-2 SAFEs will convert into shares
of Series D-2 Preferred Stock without a discount and reduce the purchase price owed by each such investor under the Series D Purchase
Agreement on a dollar-for-dollar basis. In the event the Merger does not occur, the Series D-2 SAFEs will remain outstanding. Notable
received approximately $
NOTE 9 – INCOME TAXES
As
of January 1, 2023, the Company had no unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties
during the three and nine months ended September 30, 2023 related to unrecognized tax benefits. There has been
There
is
NOTE 10 – LEASES
In
February 2023, the Company entered into a finance lease for equipment with a value of $
In
April 2023, the Company extended the lease for its facilities in Foster City, California. The term of the lease is extended beginning
in June 2023 to May 2027. The Company has the right to terminate the lease effective as of March 2025 upon providing four months of notice
and four months of base rent for the year of the notice as an early lease termination fee. The weighted average incremental borrowing
rate is
The following table summarizes total lease expense during the three and nine months ended September 30, 2023 and 2022 (in thousands):
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Amortization of Right of Use Assets - Finance Leases | $ | $ | $ | $ | ||||||||||||
| Interest on Lease Liabilities - Finance Leases | ||||||||||||||||
| Cash paid for operating lease liabilities | ||||||||||||||||
| Operating lease expense | ||||||||||||||||
| Variable lease expense | ||||||||||||||||
| Short-term lease expense | ||||||||||||||||
NOTE 11 – EQUITY INCENTIVE PLAN AND STOCK BASED COMPENSATION EXPENSE
2015 Equity Incentive Plan
The Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”) in August 2015, which provides for the granting of ISO, NSO, and restricted shares to employees, directors, and consultants. The 2015 Plan authorized a total of shares reserved for future issuance. Under amendments to the 2015 Plan, an additional shares in 2017, shares in 2019, and shares in 2022 were authorized to be reserved for future issuance. As of September 30, 2023, there were shares of common stock reserved for future issuance pursuant to the 2015 Plan.
| Options Outstanding | ||||||||||||||||
| Total Options Outstanding | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||||||
| (in years) | (in thousands) | |||||||||||||||
| Outstanding as of December 31, 2022 | $ | |
$ | |||||||||||||
| Granted | $ | |||||||||||||||
| Exercised | $ | |||||||||||||||
| Forfeited | $ | |||||||||||||||
| Cancelled | $ | |||||||||||||||
| Outstanding as of September 30, 2023 | $ | $ | ||||||||||||||
| Exercisable as of September 30, 2023 | $ | $ | ||||||||||||||
| Vested and expected to vest as of September 30, 2023 | $ | $ | ||||||||||||||
There was no restricted stock activity (RSA) under the 2015 Plan for the three and nine months ended September 30, 2023.
Stock-Based Compensation Expense
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Research and development | $ | $ | $ | $ | ||||||||||||
| General and administrative | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
As of September 30, 2023, the total stock-based compensation expense related to stock options not yet recognized was $ million and will be recognized over a weighted-average remaining period of approximately years.
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Numerator: | ||||||||||||||||
| Net income(loss) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
| Denominator | ||||||||||||||||
| Weighted-average shares of common stock outstanding used to compute net loss per share, basic and diluted | ||||||||||||||||
| Net income(loss) per share, basic and diluted | $ | $ | ) | $ | ) | $ | ) | |||||||||
The Company’s potentially dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be antidilutive. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share is the same.
NOTE 13 – SUBSEQUENT EVENTS
The Company has evaluated all events occurring through November 29, 2023, the date on which the condensed consolidated financial statements were available for issuance, during which time, nothing has occurred outside the normal course of business operations that would require disclosure.
On
October 16, 2023, Notable Labs, Ltd., formerly known as “Vascular Biogenics Ltd.” (the “Company” or “VBL”),
completed its business combination with Notable Labs, Inc. (“Notable”) and Vibrant Merger Sub, Inc., a wholly-owned subsidiary
of the Company (“Merger Sub”) in accordance with the terms of the Agreement and Plan of Merger, dated as of February 22,
2023 (the “Merger Agreement”), by and among the Company, Notable and Merger Sub. Pursuant to the Merger Agreement, Merger
Sub merged with and into Notable, with Notable surviving as a wholly owned subsidiary of the Company (the “Merger”). Also
on October 16, 2023, in connection with, and prior to completion of, the Merger, the Company effected a
Under the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”) each share of Notable’s common stock, par value $ per share, (“Notable Common Stock”), outstanding immediately prior to the Effective Time was converted into the right to receive approximately Ordinary Shares, reflecting adjustment to account for the effect of the Reverse Share Split, and also reflecting adjustment based on the Company Net Cash (as defined in the Merger Agreement) relative to Target Net Cash immediately prior to the closing of the Merger, and other adjustments.
Prior
to the Closing, certain existing stockholders of Notable purchased an aggregate of approximately $
Immediately following the Reverse Share Split, at the Effective Time there were approximately Ordinary Shares outstanding, of which the existing VBL shareholders owned approximately outstanding Ordinary Shares and the former Notable shareholders owned approximately outstanding Ordinary Shares. On a fully-diluted basis, the former Notable shareholders beneficially own approximately % of the VBL Ordinary Shares. The officers and directors of Notable prior to the Closing and certain Notable stockholders are subject to lock-up agreements. Pursuant to the lock-up agreements, the parties have agreed, except in limited circumstances, not to offer, pledge, sell or otherwise transfer or dispose of, directly or indirectly, or engage in swap or similar transactions with respect to the Ordinary Shares, or securities exchangeable for Ordinary Shares, for a period of 60 days following the Closing.
In
addition, effective upon the Closing, the holders of unexercised Notable stock options and warrants immediately prior to the Closing
were issued replacement stock options and warrants to purchase an aggregate of
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Restructuring Cost and Reserve [Line Items] | ||||
| Services revenue | $ 122 | $ 122 | ||
| Cost of services | 31 | 31 | ||
| Gross profit | 91 | 91 | ||
| Operating expenses | ||||
| Research and development | 691 | 1,167 | 3,341 | 6,286 |
| General and administrative | 1,150 | 1,037 | 7,005 | 4,086 |
| Total operating expenses | 1,841 | 2,204 | 10,346 | 10,372 |
| Loss from operations | (1,750) | (2,204) | (10,255) | (10,372) |
| Other income, net | 4,643 | 112 | 3,441 | 1,687 |
| Net income (loss) | $ 2,893 | $ (2,092) | $ (6,814) | $ (8,685) |
| Net loss per share, basic | $ 0.19 | $ (0.14) | $ (0.44) | $ (0.97) |
| Net loss per share, diluted | $ 0.19 | $ (0.14) | $ (0.44) | $ (0.97) |
| Weighted-average common shares outstanding, basic | 15,429,359 | 15,424,359 | 15,427,137 | 8,950,608 |
| Weighted-average common shares outstanding, diluted | 15,429,359 | 15,424,359 | 15,427,137 | 8,950,608 |
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit (Unaudited) (Parenthetical) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
|---|---|---|---|
Jun. 30, 2022 |
Sep. 30, 2022 |
Sep. 30, 2023 |
|
| Net of issuance costs | $ 152 | $ 55 | $ 617 |
| Series C-1 Redeemable Convertible Preferred Stock [Member] | |||
| Warrant liability | $ 918 | 236 | |
| Series C-2 Redeemable Convertible Preferred Stock [Member] | |||
| Warrant liability | $ 899 |
ORGANIZATION |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Notable Labs Inc [Member] | |
| Restructuring Cost and Reserve [Line Items] | |
| ORGANIZATION | NOTE 1 – ORGANIZATION
Description of Business
Notable Labs, Inc. (“Notable” or the “Company”) and its wholly owned subsidiary is an emerging tech-bio therapeutics company dedicated to the development and commercialization of a predictive precision medicine platform and products that treat various forms of cancer. The Company was incorporated in Delaware in June 2014 and is located in Foster City, California.
Merger with Vascular Biogenics, Ltd.
On February 22, 2023, Notable entered into a Merger Agreement (the “Merger Agreement”) with Vascular Biogenics, Ltd., an Israeli corporation (“VBL”), and Vibrant Merger Sub, Inc., a Delaware corporation and VBL’s direct, wholly-owned subsidiary, pursuant to which, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Notable merged with and into Merger Sub at the effective time (“Effective Time”), with Notable continuing after the merger as the surviving corporation and VBL’s wholly-owned subsidiary (such transaction, the “Merger”).
On October 16, 2023, Notable closed the Merger with VBL. In conjunction with the Merger, the Company changed its name from “Vascular Biogenics Ltd.” to “Notable Labs, Ltd.” (the “Name Change”).
At the Effective Time, each outstanding share of Notable capital stock was converted into the right to receive VBL ordinary shares, under the exchange ratio formula in the Merger Agreement, with former Notable securityholders owning approximately 75.2% of Notable Labs, Ltd.’s ordinary shares outstanding on a fully diluted basis, and the securityholders of VBL owning approximately 24.8% of Notable Labs, Ltd.’s ordinary shares outstanding on a fully diluted basis.
Also on October 16, 2023, in connection with, and prior to completion of, the Merger, the Company effected a 1-for-35 reverse share split (the “Reverse Share Split”) of its ordinary shares, of a nominal value of NIS 0.35 each (“Ordinary Shares”).
Following the completion of the Merger, the business of Notable became the business conducted by the Company, which is a clinical-stage platform therapeutics company developing predictive precision medicines for patients with cancer.
Upon closing of the Merger, the board of directors of the Company consists of seven directors, with one director designated by VBL. Following the closing of the Merger, the Company is being led by Notable’s chief executive officer and executive management team.
Since incorporation through September 30, 2023, Notable Labs, Ltd. and its subsidiaries (hereinafter referred to as “the Post-Merger Company”) incurred losses and negative cash flows from operations mainly attributable to its development efforts and has an accumulated deficit. The Post-Merger Company has financed its operations primarily through the issuance of Preferred Shares and Simple Agreements for Future Equity (“SAFE”) shares and through the cash inflow as a result of the Merger completed on October 16, 2023. As of the issuance date of these consolidated financial statements, Notable Labs, Ltd.’s cash and investments provide sufficient resources to fund its operations through at least the next 12 months. In order to develop and commercialize any future product candidates if they are granted regulatory approval, Notable Labs, Ltd. is required to obtain further funding through public or private offerings, debt financings, collaboration, licensing arrangements or other sources. Adequate additional funding may not be available to Notable Labs, Ltd. on acceptable terms, or at all. If Notable Labs, Ltd. is unable to raise capital when needed or on attractive terms, it may be forced to delay, reduce or eliminate its research and development programs or commercialization and manufacturing efforts.
|
BASIS OF PRESENTATION |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Notable Labs Inc [Member] | |
| Restructuring Cost and Reserve [Line Items] | |
| BASIS OF PRESENTATION | NOTE 2 – BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of Notable have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. These unaudited interim condensed consolidated financial statements should therefore be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2022. In the opinion of management, all adjustments (of a normal recurring nature) considered necessary for the fair statement of the results for the interim periods presented have been included. Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year.
The condensed consolidated financial statements include the accounts of Notable and its wholly owned subsidiary, all of which are denominated in US dollars. All intercompany balances and transactions have been eliminated in consolidation.
|
SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||
| Notable Labs Inc [Member] | ||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
| SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and calculation methods applied in the preparation of the unaudited condensed consolidated interim financial statements are consistent with those applied in the preparation of the annual financial statements as of December 31, 2022 and for the year then ended.
Revenue Recognition
In accordance with FASB ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue upon transfer of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of FASB ASC 606, the Company performs the following five steps:
For services performed, revenue is recognized at a point in time when the services are performed. However, for certain contracts, revenue is recognized over time as the customer simultaneously receives and consumes the benefits of performance as the Company performs the service. For license agreements, each contract is reviewed to determine the portion of the revenue that should be recognized at the point in time that the license is transferred to the customer and the portion of the revenue to be recognized over time.
Cost of Services
Cost of services represents costs directly related to the services performed. Cost of services is primarily comprised of cost of samples, labor.
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP generally requires management to make certain estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. The Company regularly evaluates estimates and assumptions related to assets and liabilities, and disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. Areas where management uses subjective judgments include, but are not limited to, measurement of lease liabilities and right of use assets, impairment of long-lived assets, stock-based compensation, accrued research and development costs, and redeemable convertible preferred stock warrant liability in the accompanying condensed consolidated financial statements. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions.
Segments
The Company operates and manages its business as one reportable operating segment, which is the business of developing predictive precision medicines that treat various forms of cancer. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for allocating resources and evaluating financial performance. All of the Company’s long-lived assets are maintained in, and all revenues and losses are attributable to, the United States of America.
Recently Adopted Accounting Pronouncements
As of September 30, 2023, there are no recently adopted accounting standards which would have a material effect on the Company’s financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted
As of September 30 2023, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements.
|
FAIR VALUE MEASUREMENTS |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notable Labs Inc [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE MEASUREMENTS | NOTE 4 – FAIR VALUE MEASUREMENTS
The following table sets forth the Company’s financial liabilities that are measured at fair value on a recurring basis by level with the fair value hierarchy (in thousands):
There were no transfers between Levels 1, 2, or 3 during the nine months ended September 30, 2023 and the year ended December 31, 2022. Additionally, there were no cash equivalents or marketable securities held as of September 30, 2023 or December 31, 2022.
The value of the warrants was based on the estimated value of the warrant using the Black-Scholes model as of September 30, 2023. The following assumptions were used in determining the fair value of the warrants:
In connection with the Merger Agreement, the Company entered into SAFEs with certain investors by which the Company received $4.3 million of gross proceeds and a Series D Preferred Stock Purchase Agreement (the “Series D Purchase Agreement”). Under the terms of the Series D Purchase Agreement, the SAFE holders will exchange their respective SAFEs for shares of Series D-1 Preferred Stock at the time when all conditions precedent to the closing of the Merger contained in the Merger Agreement, shall have been satisfied or waived and all other conditions precedent in the Series D Purchase Agreement have been satisfied or waived. In the event the Merger does not close, the SAFE holders will not have their funds returned. The value of the SAFE notes was based on the conversion value of the SAFE notes as of September 30, 2023.
On June 28, 2023, Notable entered into Simple Agreements for Future Equity (the “D-2 SAFEs”) with certain investors who committed to purchase shares of Series D-2 Preferred Stock pursuant to the Series D Purchase Agreement. The D-2 SAFEs will convert into shares of Series D-2 Preferred Stock without a discount and reduce the purchase price owed by each such investor under the Series D Purchase Agreement on a dollar-for-dollar basis. In the event the Merger does not occur, the Series D-2 SAFEs will remain outstanding. Notable received approximately $2.0 million of aggregate gross proceeds from the purchasers of the D-2 SAFEs prior to June 30, 2023.
The following is a summary of the Company’s SAFE warrant liability and SAFE notes activity for the nine months ended September 30, 2023:
The change in the fair value of the redeemable convertible preferred stock warrant liability resulted from a reduction in the value per warrant based on the fair market valuation of the warrants as of September 30, 2023. The reduction primarily related to the price of the underlying stock being substantially less than previously expected.
The fair value of SAFE notes at issuance consists of the $4.3 million notes received in the first quarter of 2023 related to the Series D-1 Preferred Stock and the $2.0 million notes received in the second quarter of 2023 related to the Series D-2 Preferred Stock. The change in the fair value is based on the conversion values included in the SAFE notes.
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BALANCE SHEET COMPONENTS |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notable Labs Inc [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BALANCE SHEET COMPONENTS | NOTE 5 – BALANCE SHEET COMPONENTS
The following table presents the components of prepaid expenses and other current assets as of September 30, 2023 and December 31, 2022 (in thousands):
During fiscal years 2020 and 2021, the Company took advantage of the relief provisions provided by the U.S. government in response to COVID-19 under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The CARES Act provides an employee retention credit (“Employee Retention Credit”), which is a refundable tax credit against certain employment taxes dependent on certain qualified wages paid to employees through fiscal year 2021. The Company qualifies for the tax credit under the CARES Act and continued to receive additional tax credits under the additional relief provisions for qualified wages through the end of 2021. The Company accounts for these labor related tax credits as a reduction to the expense that they are intended to compensate in the period in which the corresponding expense is incurred and there is reasonable assurance the Company will both receive the tax credits and comply with all conditions attached to the tax credits. As of September 30, 2023 and December 31, 2022, $0.6 million and $1.2 million, respectively, was recorded as a receivable in prepaid and other current assets. The Company received $0.7 million of the receivable in the quarter ended March 31, 2023 and believes there is reasonable assurance the remaining balance will be collected.
Property and Equipment, Net
The following table presents the components of property and equipment, net, as of September 30, 2023 and December 31, 2022 (in thousands):
Depreciation expense was approximately $0.1 million and $0.2 million for the three and nine months ended September 30, 2023 and $0.1 million and $0.3 million for the three and nine months ended September 30, 2022.
Investment in SAFE
In October 2021, the Company entered into a simple agreement for future equity (“Oncoheroes SAFE”) agreement for $1.5 million in exchange for a right to participate in a future equity financing of preferred stock to be issued by Oncoheroes Biosciences Inc. (“Oncoheroes”). Alternatively, upon a dissolution or liquidity event such as a change in control or an initial public offering, the Company is entitled to receive a portion of $1.5 million. The number of shares of preferred stock would be determined by dividing the Oncoheroes SAFE purchase amount by price per share of the preferred stock issued in the respective equity financing. The Company recorded the investment of $1.5 million as an investment in the Oncoheroes SAFE on the condensed consolidated balance sheet as of September 30, 2023 and December 31, 2022. The investment in the Oncoheroes SAFE is treated as an investment in an equity security that the Company has elected to record at its cost less any impairment. No impairment losses have been recognized related to the investment for the three and nine months ended September 30, 2023 and 2022 (See Note 7).
Accrued Expenses and Other Current Liabilities
The following table presents the components of accrued expenses and other current liabilities as of September 30, 2023 and December 31, 2022 (in thousands):
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ACCOUNTS PAYABLE AND ACCRUED EXPENSES RELATED PARTIES |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notable Labs Inc [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES RELATED PARTIES | NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES RELATED PARTIES
As of September 30, 2023 and December 31, 2022, the Company owed related parties the following (in thousands):
For consulting services with the Chairman of the Board, the Company recorded general and administrative expenses of $91,250 and $273,750 for the three and nine months ended September 30, 2023. During the three and nine months ended September 30, 2022, the Company recorded general and administrative expenses of $60,834 and $248,601.
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CO-DEVELOPMENT AND LICENSE AGREEMENTS |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Notable Labs Inc [Member] | |
| Restructuring Cost and Reserve [Line Items] | |
| CO-DEVELOPMENT AND LICENSE AGREEMENTS | NOTE 7 – CO-DEVELOPMENT AND LICENSE AGREEMENTS
Oncoheroes Agreement
In September 2021, the Company entered into an Exclusive License Agreement with Oncoheroes (the “Oncoheroes Agreement”) whereby the Company obtained worldwide exclusive development and commercialization rights in the small molecule volasertib for uses relating to certain types of cancer in adults. Under the terms of the Oncoheroes Agreement, Oncoheroes retains the right to develop and commercialize volasertib for cancers not licensed to the Company.
Under the terms of the agreement, the Company is obligated to make additional clinical and regulatory milestone payments up to a total of $8.0 million, plus tiered royalties from the mid-single digits up to mid-teens on net sales. In the event the Company grants a sublicense of rights, the Company will need to pay Oncoheroes a high single digit percentage of any upfront payment obtained from such sublicenses. No milestones have been met during the three and nine months ended September 30, 2023 and 2022, and the Company did not make any royalty payments as the related product has not been approved for commercialization.
The Company also entered a SAFE agreement with Oncoheroes in October 2021 for $1.5 million recorded in the investment in SAFE on the balance sheet, as discussed in Note 5.
CicloMed Agreement
In July 2021, the Company entered into a Co-Development and Profit-Sharing Agreement with CicloMed LLC (“CicloMed”) (the “CicloMed Agreement”) regarding use of the Company’s precision oncology diagnostic test in the research and development of CicloMed’s CicloProx product for the treatment of acute myeloid leukemia. Under the terms of the co-development agreement, CicloMed holds the primary responsibility for executing clinical trial operations while Notable is primarily focused on optimizing Notable’s predictive precision medicine platform. Both parties will equally share the costs associated with the on-going clinical trial incurred after the effective date. In the event a CicloProx product is commercially developed and sold, the parties will share in the net proceeds. The Company accrued amounts relative to this agreement and based on the agreement received a benefit of $0.2 million and $0 million for the three and nine months ended September 30, 2023 and an expense $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, as research and development expense related to this agreement.
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SIMPLE AGREEMENTS FOR FUTURE EQUITY NOTES |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Notable Labs Inc [Member] | |
| Restructuring Cost and Reserve [Line Items] | |
| SIMPLE AGREEMENTS FOR FUTURE EQUITY NOTES | NOTE 8 – SIMPLE AGREEMENTS FOR FUTURE EQUITY NOTES
The Company entered into Simple Agreements for Future Equity (the “SAFEs”) with certain investors, during the nine months ended September 30, 2023, by which the Company received $4.3 million of gross proceeds and a Series D Preferred Stock Purchase Agreement (the “Series D Purchase Agreement”). Under the terms of the Series D Purchase Agreement, the SAFE holders will exchange their respective SAFEs for shares of Series D-1 Preferred Stock at the time when all conditions precedent to the closing of the Merger contained in the Merger Agreement, shall have been satisfied or waived and all other conditions precedent in the Series D Purchase Agreement have been satisfied or waived. In the event the Merger does not close, the SAFE holders will not have their funds returned. Additionally, under the Series D Purchase Agreement, certain investors committed to purchase, and the Company agreed to issue, shares of Series D-2 Preferred Stock to such investors in exchange for $6.0 million, the closing of which will take place at the time all conditions precedent to the closing of the Merger contained in the Merger Agreement, shall have been satisfied or waived and all other conditions precedent in the Series D Purchase Agreement shall have been satisfied or waived. The SAFEs were recorded as a liability at issuance and subject to remeasurement at each reporting date, with changes in fair value recorded in other income (expense), net in the condensed consolidated statements of operations and comprehensive loss.
On June 28, 2023, Notable entered into Simple Agreements for Future Equity (the “D-2 SAFEs”) with certain investors who committed to purchase shares of Series D-2 Preferred Stock pursuant to the Series D Purchase Agreement. The D-2 SAFEs will convert into shares of Series D-2 Preferred Stock without a discount and reduce the purchase price owed by each such investor under the Series D Purchase Agreement on a dollar-for-dollar basis. In the event the Merger does not occur, the Series D-2 SAFEs will remain outstanding. Notable received approximately $2.0 million of aggregate gross proceeds from the purchasers of the D-2 SAFEs prior to June 30, 2023.
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INCOME TAXES |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Notable Labs Inc [Member] | |
| Restructuring Cost and Reserve [Line Items] | |
| INCOME TAXES | NOTE 9 – INCOME TAXES
As of January 1, 2023, the Company had no unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties during the three and nine months ended September 30, 2023 related to unrecognized tax benefits. There has been no change in unrecognized tax benefits during the three and nine months ended September 30, 2023, and there was no accrual for uncertain tax positions as of September 30, 2023. Tax years from 2019 through 2022 remain subject to examination by major tax jurisdictions.
There is no income tax benefit for the losses for the three and nine months ended September 30, 2023 and 2022, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits.
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LEASES |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notable Labs Inc [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES | NOTE 10 – LEASES
In February 2023, the Company entered into a finance lease for equipment with a value of $405,000 along with a service contract with a value of $181,000. The finance lease is being accounted in accordance with FASB ASC 842, Leases, and the service contract is expensed over the term of the lease.
In April 2023, the Company extended the lease for its facilities in Foster City, California. The term of the lease is extended beginning in June 2023 to May 2027. The Company has the right to terminate the lease effective as of March 2025 upon providing four months of notice and four months of base rent for the year of the notice as an early lease termination fee. The weighted average incremental borrowing rate is 6.0%. Total lease payments from June 2023 through May 2027 will be approximately $2.2 million.
The following table summarizes total lease expense during the three and nine months ended September 30, 2023 and 2022 (in thousands):
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EQUITY INCENTIVE PLAN AND STOCK BASED COMPENSATION EXPENSE |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notable Labs Inc [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multiemployer Plan [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EQUITY INCENTIVE PLAN AND STOCK BASED COMPENSATION EXPENSE | NOTE 11 – EQUITY INCENTIVE PLAN AND STOCK BASED COMPENSATION EXPENSE
2015 Equity Incentive Plan
The Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”) in August 2015, which provides for the granting of ISO, NSO, and restricted shares to employees, directors, and consultants. The 2015 Plan authorized a total of shares reserved for future issuance. Under amendments to the 2015 Plan, an additional shares in 2017, shares in 2019, and shares in 2022 were authorized to be reserved for future issuance. As of September 30, 2023, there were shares of common stock reserved for future issuance pursuant to the 2015 Plan.
There was no restricted stock activity (RSA) under the 2015 Plan for the three and nine months ended September 30, 2023.
Stock-Based Compensation Expense
As of September 30, 2023, the total stock-based compensation expense related to stock options not yet recognized was $ million and will be recognized over a weighted-average remaining period of approximately years.
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NET LOSS PER SHARE |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notable Labs Inc [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET LOSS PER SHARE |
The Company’s potentially dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be antidilutive. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share is the same.
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SUBSEQUENT EVENTS |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Notable Labs Inc [Member] | |
| Restructuring Cost and Reserve [Line Items] | |
| SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS
The Company has evaluated all events occurring through November 29, 2023, the date on which the condensed consolidated financial statements were available for issuance, during which time, nothing has occurred outside the normal course of business operations that would require disclosure.
On October 16, 2023, Notable Labs, Ltd., formerly known as “Vascular Biogenics Ltd.” (the “Company” or “VBL”), completed its business combination with Notable Labs, Inc. (“Notable”) and Vibrant Merger Sub, Inc., a wholly-owned subsidiary of the Company (“Merger Sub”) in accordance with the terms of the Agreement and Plan of Merger, dated as of February 22, 2023 (the “Merger Agreement”), by and among the Company, Notable and Merger Sub. Pursuant to the Merger Agreement, Merger Sub merged with and into Notable, with Notable surviving as a wholly owned subsidiary of the Company (the “Merger”). Also on October 16, 2023, in connection with, and prior to completion of, the Merger, the Company effected a 1-for-35 reverse share split (the “Reverse Share Split”) of its ordinary shares, of a nominal value of NIS 0.35 each (“Ordinary Shares”). The Company also changed its name to “Notable Labs, Ltd.” (the “Name Change”). Following the completion of the Merger, the business of Notable became the business conducted by the Company, which is a clinical-stage platform therapeutics company developing predictive precision medicines for patients with cancer. Unless otherwise noted, all references to share amounts in this Current Report on Form 8-K reflect the Reverse Share Split.
Under the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”) each share of Notable’s common stock, par value $ per share, (“Notable Common Stock”), outstanding immediately prior to the Effective Time was converted into the right to receive approximately Ordinary Shares, reflecting adjustment to account for the effect of the Reverse Share Split, and also reflecting adjustment based on the Company Net Cash (as defined in the Merger Agreement) relative to Target Net Cash immediately prior to the closing of the Merger, and other adjustments.
Prior to the Closing, certain existing stockholders of Notable purchased an aggregate of approximately $10.3 million of Notable’s Series D-1 preferred shares and Series D-2 preferred shares. Prior to the Closing the Series D-1 preferred shares and Series D-2 preferred shares converted into Notable Common Stock, which were then converted into a right to receive Ordinary Shares at the Effective Time.
Immediately following the Reverse Share Split, at the Effective Time there were approximately Ordinary Shares outstanding, of which the existing VBL shareholders owned approximately outstanding Ordinary Shares and the former Notable shareholders owned approximately outstanding Ordinary Shares. On a fully-diluted basis, the former Notable shareholders beneficially own approximately % of the VBL Ordinary Shares. The officers and directors of Notable prior to the Closing and certain Notable stockholders are subject to lock-up agreements. Pursuant to the lock-up agreements, the parties have agreed, except in limited circumstances, not to offer, pledge, sell or otherwise transfer or dispose of, directly or indirectly, or engage in swap or similar transactions with respect to the Ordinary Shares, or securities exchangeable for Ordinary Shares, for a period of 60 days following the Closing.
In addition, effective upon the Closing, the holders of unexercised Notable stock options and warrants immediately prior to the Closing were issued replacement stock options and warrants to purchase an aggregate of 255,646 Ordinary Shares. |
SIGNIFICANT ACCOUNTING POLICIES (Policies) - Notable Labs Inc [Member] |
9 Months Ended | |||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
| Revenue Recognition | Revenue Recognition
In accordance with FASB ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue upon transfer of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of FASB ASC 606, the Company performs the following five steps:
For services performed, revenue is recognized at a point in time when the services are performed. However, for certain contracts, revenue is recognized over time as the customer simultaneously receives and consumes the benefits of performance as the Company performs the service. For license agreements, each contract is reviewed to determine the portion of the revenue that should be recognized at the point in time that the license is transferred to the customer and the portion of the revenue to be recognized over time.
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| Cost of Services | Cost of Services
Cost of services represents costs directly related to the services performed. Cost of services is primarily comprised of cost of samples, labor.
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| Use of Estimates | Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP generally requires management to make certain estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. The Company regularly evaluates estimates and assumptions related to assets and liabilities, and disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. Areas where management uses subjective judgments include, but are not limited to, measurement of lease liabilities and right of use assets, impairment of long-lived assets, stock-based compensation, accrued research and development costs, and redeemable convertible preferred stock warrant liability in the accompanying condensed consolidated financial statements. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions.
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| Segments | Segments
The Company operates and manages its business as one reportable operating segment, which is the business of developing predictive precision medicines that treat various forms of cancer. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for allocating resources and evaluating financial performance. All of the Company’s long-lived assets are maintained in, and all revenues and losses are attributable to, the United States of America.
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| Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements
As of September 30, 2023, there are no recently adopted accounting standards which would have a material effect on the Company’s financial statements.
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| Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted
As of September 30 2023, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements. |
FAIR VALUE MEASUREMENTS (Tables) - Notable Labs Inc [Member] |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| SCHEDULE OF FAIR VALUE ON RECURRING BASIC ASSETS AND LIABILITIES | The following table sets forth the Company’s financial liabilities that are measured at fair value on a recurring basis by level with the fair value hierarchy (in thousands):
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| SCHEDULE OF ESTIMATING THE FAIR VALUE OF THE WARRANTS |
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| SCHEDULE OF FAIR VALUE OF PREFERRED STOCK WARRANT LIABILITY | The following is a summary of the Company’s SAFE warrant liability and SAFE notes activity for the nine months ended September 30, 2023:
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BALANCE SHEET COMPONENTS (Tables) - Notable Labs Inc [Member] |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS | The following table presents the components of prepaid expenses and other current assets as of September 30, 2023 and December 31, 2022 (in thousands):
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| SCHEDULE OF PROPERTY AND EQUIPMENT | The following table presents the components of property and equipment, net, as of September 30, 2023 and December 31, 2022 (in thousands):
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| SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | The following table presents the components of accrued expenses and other current liabilities as of September 30, 2023 and December 31, 2022 (in thousands):
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ACCOUNTS PAYABLE AND ACCRUED EXPENSES RELATED PARTIES (Tables) |
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| Notable Labs Inc [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | As of September 30, 2023 and December 31, 2022, the Company owed related parties the following (in thousands):
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LEASES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notable Labs Inc [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCHEDULE OF LEASE COST | The following table summarizes total lease expense during the three and nine months ended September 30, 2023 and 2022 (in thousands):
|
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EQUITY INCENTIVE PLAN AND STOCK BASED COMPENSATION EXPENSE (Tables) - Notable Labs Inc [Member] |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multiemployer Plan [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCHEDULE OF STOCK OPTION ACTIVITY |
|
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| SCHEDULE OF STOCK BASED COMPENSATION EXPENSE |
|
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NET LOSS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notable Labs Inc [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED |
|
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ORGANIZATION (Details Narrative) - Notable Labs Inc [Member] - USD ($) |
Oct. 16, 2023 |
Sep. 30, 2023 |
|---|---|---|
| Subsequent Event [Member] | ||
| Reverse share split | 1-for-35 | |
| Debt instrument face amount | $ 0.35 | |
| Security Holder [Member] | Maximum [Member] | ||
| Ownership percentage | 75.20% | |
| Security Holder [Member] | Minimum [Member] | ||
| Ownership percentage | 24.80% |
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) |
9 Months Ended |
|---|---|
|
Sep. 30, 2023
Integer
| |
| Notable Labs Inc [Member] | |
| Restructuring Cost and Reserve [Line Items] | |
| Reportable operating segments | 1 |
SCHEDULE OF FAIR VALUE ON RECURRING BASIC ASSETS AND LIABILITIES (Details) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| SAFE notes | $ 9,077 | |
| Preferred stock warrant liability | 231 | $ 5,113 |
| Fair Value, Inputs, Level 1 [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| SAFE notes | ||
| Preferred stock warrant liability | ||
| Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| SAFE notes | ||
| Preferred stock warrant liability | ||
| Fair Value, Inputs, Level 3 [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| SAFE notes | 9,077 | |
| Preferred stock warrant liability | $ 231 | $ 5,113 |
SCHEDULE OF FAIR VALUE OF PREFERRED STOCK WARRANT LIABILITY (Details) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Balance at beginning of period | $ 5,113 | |
| Change in fair value of preferred stock warrant liability | (4,882) | $ (649) |
| Balance at end of period | 231 | |
| Convertible Notes Payable [Member] | ||
| Balance at beginning of period | ||
| Debt instrument, fair value | 6,354 | |
| Change in fair value of preferred stock warrant liability | 2,723 | |
| Balance at end of period | 9,077 | |
| Redeemable Convertible Preferred Stock [Member] | ||
| Balance at beginning of period | 5,113 | |
| Debt instrument, fair value | ||
| Change in fair value of preferred stock warrant liability | (4,882) | |
| Balance at end of period | $ 231 | |
FAIR VALUE MEASUREMENTS (Details Narrative) - Notable Labs Inc [Member] - USD ($) |
9 Months Ended | ||||
|---|---|---|---|---|---|
Jun. 28, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|
| Restructuring Cost and Reserve [Line Items] | |||||
| Cash equivalents | $ 0 | $ 0 | |||
| Series D1 Preferred Stock [Member] | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| SAFE notes issuance | $ 4,300,000 | ||||
| Series D2 Preferred Stock [Member] | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| SAFE notes issuance | $ 2,000,000.0 | ||||
| Simple Agreement Future Equity [Member] | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Gross proceeds | $ 4,300,000 | ||||
| Simple Agreement Future Equity [Member] | Series D1 Preferred Stock [Member] | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Preferred stock, shares issued | 6,118,198 | ||||
| Simple Agreement Future Equity [Member] | Series D2 Preferred Stock [Member] | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Gross proceeds | $ 2,000,000.0 | ||||
| Preferred stock, shares issued | 5,891,911 |
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Restructuring Cost and Reserve [Line Items] | ||
| Accounts receivable | $ 5 | $ 8 |
| Employee retention credit | 572 | 1,237 |
| Prepaid expenses | 168 | 119 |
| Prepaid benefits | 25 | 37 |
| Prepaid clinical expenses | 6 | 6 |
| Total prepaid expenses and other current assets | $ 776 | $ 1,407 |
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Restructuring Cost and Reserve [Line Items] | ||
| Property and equipment, Gross | $ 2,262 | $ 2,223 |
| Less: accumulated depreciation | (1,933) | (1,781) |
| Total property and equipment, net | 329 | 442 |
| Computer Equipment [Member] | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Property and equipment, Gross | 183 | 171 |
| Laboratory Equipment [Member] | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Property and equipment, Gross | 1,977 | 1,950 |
| Office Equipment [Member] | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Property and equipment, Gross | 29 | 29 |
| Leasehold Improvements [Member] | ||
| Restructuring Cost and Reserve [Line Items] | ||
| Property and equipment, Gross | $ 73 | $ 73 |
SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Restructuring Cost and Reserve [Line Items] | ||
| Accrued expenses | $ 742 | $ 651 |
| Accrued employee expenses | 6 | 10 |
| Accrued bonuses | 152 | 239 |
| Total accrued expenses and other current liabilities | $ 900 | $ 900 |
BALANCE SHEET COMPONENTS (Details Narrative) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|---|
Oct. 31, 2021 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
| Prepaid Expense and Other Assets | $ 600 | $ 600 | $ 1,200 | ||||
| Other receivables | $ 700 | ||||||
| Depreciation | 100 | $ 100 | 193 | $ 264 | |||
| Investment in SAFE | 1,500 | 1,500 | 1,500 | ||||
| Simple Agreement Future Equity [Member] | |||||||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
| Investment in SAFE | $ 1,500 | $ 1,500 | $ 1,500 | ||||
| Issuance initial public offering | $ 1,500 | ||||||
| Simple Agreement Future Equity [Member] | Preferred Stock [Member] | |||||||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
| Investment in SAFE | $ 1,500 | ||||||
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
| Accrued expenses | $ 742 | $ 651 |
| Board of Directors Chairman [Member] | ||
| Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
| Accounts payable | 213 | |
| Accrued expenses | 60 | |
| Accounts payable and accrued liabilities, Total | $ 213 | $ 60 |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES RELATED PARTIES (Details Narrative) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| General and administrative expense | $ 1,150 | $ 1,037 | $ 7,005 | $ 4,086 |
| Consulting Services [Member] | ||||
| General and administrative expense | $ 91,250 | $ 60,834 | $ 273,750 | $ 248,601 |
CO-DEVELOPMENT AND LICENSE AGREEMENTS (Details Narrative) - Notable Labs Inc [Member] - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
Oct. 31, 2021 |
|
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
| Investment in SAFE | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | ||||
| Research and development | 691,000 | $ 1,167,000 | 3,341,000 | $ 6,286,000 | |||
| Oncoheroes Agreement [Member] | |||||||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
| Milestone payments | $ 8,000,000.0 | 0 | 0 | 0 | 0 | ||
| Investment in SAFE | $ 1,500,000 | ||||||
| CicloMed Agreement [Member] | |||||||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
| Research and development | $ 200,000 | $ 100,000 | $ 0 | $ 200,000 | |||
SIMPLE AGREEMENTS FOR FUTURE EQUITY NOTES (Details Narrative) - Simple Agreement Future Equity [Member] - Notable Labs Inc [Member] - USD ($) $ in Millions |
9 Months Ended | |
|---|---|---|
Jun. 28, 2023 |
Sep. 30, 2023 |
|
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
| Gross proceeds | $ 4.3 | |
| Series D1 Preferred Stock [Member] | ||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
| Preferred stock, shares issued | 6,118,198 | |
| Series D2 Preferred Stock [Member] | ||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
| Gross proceeds | $ 2.0 | |
| Preferred stock, shares issued | 5,891,911 | |
| Issuance price | $ 6.0 |
INCOME TAXES (Details Narrative) - Notable Labs Inc [Member] - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Restructuring Cost and Reserve [Line Items] | ||||
| Unrecognized tax benefits tax penalities and interest expenses | $ 0 | $ 0 | ||
| Unrecognized tax benefits income tax penalities and interest accrued | 0 | 0 | ||
| Income tax expenses | $ 0 | $ 0 | $ 0 | $ 0 |
SCHEDULE OF LEASE COST (Details) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Restructuring Cost and Reserve [Line Items] | ||||
| Amortization of Right of Use Assets - Finance Leases | $ 20 | $ 47 | ||
| Interest on Lease Liabilities - Finance Leases | 3 | 7 | ||
| Cash paid for operating lease liabilities | 191 | 258 | 566 | 561 |
| Operating lease expense | 199 | 186 | 570 | 561 |
| Variable lease expense | 25 | 18 | 67 | 74 |
| Short-term lease expense | $ 1 | $ 167 | ||
LEASES (Details Narrative) - Notable Labs Inc [Member] - USD ($) |
1 Months Ended | |
|---|---|---|
Apr. 30, 2023 |
Feb. 28, 2023 |
|
| Finance lease weighted average discount rate percent | 6.00% | |
| Lease cost | $ 2,200,000 | |
| Equipment [Member] | ||
| Finance lease liability | $ 405,000 | |
| Service [Member] | ||
| Finance lease liability | $ 181,000 |
SCHEDULE OF STOCK BASED COMPENSATION EXPENSE (Details) - Notable Labs Inc [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Multiemployer Plan [Line Items] | ||||
| Total | $ 135 | $ 120 | $ 453 | $ 579 |
| Research and Development Expense [Member] | ||||
| Multiemployer Plan [Line Items] | ||||
| Total | 24 | 31 | 75 | 220 |
| General and Administrative Expense [Member] | ||||
| Multiemployer Plan [Line Items] | ||||
| Total | $ 111 | $ 89 | $ 378 | $ 359 |
EQUITY INCENTIVE PLAN AND STOCK BASED COMPENSATION EXPENSE (Details Narrative) - Notable Labs Inc [Member] - USD ($) $ in Millions |
9 Months Ended | ||||
|---|---|---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2019 |
Dec. 31, 2017 |
Aug. 31, 2015 |
|
| Multiemployer Plan [Line Items] | |||||
| Total stock based compensation expense | $ 0.6 | ||||
| Weighted average remaining period | 1 year 4 months 24 days | ||||
| August Two Thousand Fifteen Incentive Plan [Member] | |||||
| Multiemployer Plan [Line Items] | |||||
| Share based compensation description | Options under the 2015 Plan may be granted for periods of up to 10 years and at prices no less than 100% of the estimated fair value of the underlying shares of common stock on the date of grant as determined by the Board provided that the exercise price of an ISO granted to a 10% stockholder shall not be less than 110% of the estimated fair value of the shares on the date of grant. The 2015 Plan requires that options be exercised no later than 10 years after the grant. Options granted to employees generally vest ratably on a monthly basis over four years, subject to cliff vesting restrictions and continuing service. | ||||
| Twenty Fifteen Plan [Member] | |||||
| Multiemployer Plan [Line Items] | |||||
| Common stock reserved for future issuance | 5,882,280 | 500,000 | 2,243,140 | 2,547,746 | 591,394 |
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED (Details) - Notable Labs Inc [Member] - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Restructuring Cost and Reserve [Line Items] | ||||
| Net income(loss) | $ 2,893 | $ (2,092) | $ (6,814) | $ (8,685) |
| Weighted average common shares outstanding basic | 15,429,359 | 15,424,359 | 15,427,137 | 8,950,608 |
| Weighted average common shares outstanding diluted | 15,429,359 | 15,424,359 | 15,427,137 | 8,950,608 |
| Net loss per share basic | $ 0.19 | $ (0.14) | $ (0.44) | $ (0.97) |
| Net loss per share diluted | $ 0.19 | $ (0.14) | $ (0.44) | $ (0.97) |
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