Research Reports

Key takeaways

Net income was -$2.7M, a 57.5% widening from -$1.7M in Q1 FY2025 due to higher R&D and G&A expenses for clinical trial preparations and public company operations.

Diluted EPS was $0.85, up 226.9% from $0.26 in Q1 FY2025, reflecting changes in share structure amid reverse split considerations for Nasdaq compliance.

Net cash from operating activities was -$3.6M versus -$2.5M prior year, driven by increased prepayments to R&D subcontractors for GMP manufacturing to support trial initiation.

Capital expenditures were $0, compared to $6K last year, as focus shifted to clinical trial readiness.

Decrease in financial expenses mainly from lower revaluation of promissory notes, partially offsetting operating loss expansion.

Full analysis

The operating cash burn intensified to $3.6 million from $2.5 million year-over-year, mirroring the push toward trial readiness. This increase stemmed primarily from higher prepayments to R&D product development subcontractors and consultants for GMP batch manufacturing of the drug product, positioning the company for trial initiation in Q2 2026. Free cash flow matched operating cash flow at -$3.6 million, given zero capital expenditures this quarter versus minimal $6K prior year.

Liquidity pressures are acute, with management and auditors expressing substantial doubt about continuing operations without additional external capital. Recent financing includes an ATM agreement entered in September 2025, though inflows remain limited. A proposed reverse share split aims to bolster the share price for Nasdaq listing continuity. Looking forward, R&D expenses are expected to rise further as clinical plans advance, with use of funds contingent on evolving business conditions and funding availability. Investors should monitor capital raises closely amid the going concern emphasis and trial milestones.

SLXNW · Silexion Therapeutics Ltd.

Summary

Key takeaways

Full analysis