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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2023

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

Commission File Number: 001-38503

 

Iterum Therapeutics plc

(Exact name of registrant as specified in its charter)

 

 

Ireland

98-1283148

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

Fitzwilliam Court 1st Floor,

Leeson Close,

Dublin 2, Ireland

(Address of principal executive offices)

Not applicable

(Zip Code)

 

(+353) 1 669-4820

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Ordinary Shares, $0.01 par value per share

 

ITRM

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

As of October 31, 2023, the registrant had 13,050,007 ordinary shares, $0.01 par value per share, outstanding.

 

 


 

Table of Contents

 

Page

PART I.

FINANCIAL INFORMATION

1

Item 1.

Financial Statements (Unaudited)

1

Condensed Consolidated Balance Sheets

1

Condensed Consolidated Statements of Operations and Comprehensive Loss

2

Condensed Consolidated Statements of Cash Flows

3

 

Condensed Consolidated Statements of Stockholders' Equity

4

Notes to Unaudited Condensed Consolidated Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

37

Item 4.

Controls and Procedures

37

PART II.

OTHER INFORMATION

38

Item 1.

Legal Proceedings

38

Item 1A.

Risk Factors

38

Item 6.

Exhibits

99

 

Signatures

100

 

i


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA

This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report are forward-looking statements. In some cases, you can identify forward-looking statements by words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these words or other comparable terminology. These forward-looking statements include, but are not limited to, statements about:

our use of cash reserves;
our ability to continue as a going concern;
the design, initiation, timing, progress and results of our preclinical studies and clinical trials, and our research and development programs including the ongoing Phase 3 clinical trial being conducted in response to the Complete Response Letter (CRL) received from the U.S. Food and Drug Administration in July 2021 in connection with our New Drug Application (NDA) for oral sulopenem;
our ability to resolve the issues set forth in the CRL and resubmit our NDA;
our ability to retain the continued service of our key professionals and to identify, hire and retain additional qualified professionals;
our ability to advance product candidates into, and successfully complete, clinical trials;
the potential advantages of our product candidates;
the timing or likelihood of regulatory filings and approvals, including with respect to the potential resubmission of our NDA for oral sulopenem;
the commercialization of our product candidates, if approved;
our manufacturing plans;
our sales, marketing and distribution capabilities and strategy;
market acceptance of any product we successfully commercialize;
the pricing, coverage and reimbursement of our product candidates, if approved;
the implementation of our business model, strategic plans for our business and product candidates;
the scope of protection we are able to establish and maintain for intellectual property rights covering our product candidates and our ability to defend and enforce any such intellectual property rights;
our ability to enter into strategic arrangements, collaborations and/or commercial partnerships in the United States and other territories and the potential benefits of such arrangements;
our estimates regarding expenses, capital requirements and needs for additional financing;
our expectations regarding how far into the future our cash on hand will fund our ongoing operations;
our financial performance;
developments relating to our competitors and our industry;
our ability to regain and maintain compliance with listing requirements of the Nasdaq Capital Market;
the impact of general economic conditions, including inflation; and
the outcome, impact, effects and results of our evaluation of corporate, strategic, financial and financing alternatives, including the terms, timing, structure, value, benefits and costs of any corporate, strategic, financial or financing alternative and our ability to complete one at all.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk Factors” and elsewhere in this Quarterly Report. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Quarterly Report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

ii


 

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report to conform these statements to new information, actual results or to changes in our expectations, except as required by law.

You should read this Quarterly Report and the documents that we have filed with the Securities and Exchange Commission (SEC), as exhibits to this Quarterly Report with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect.

This Quarterly Report also contains industry, market and competitive position data from our own internal estimates and research as well as industry and general publications and research surveys and studies conducted by third parties. Industry publications, studies, and surveys generally state that they have been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. Our internal data and estimates are based upon information obtained from trade and business organizations and other contacts in the markets in which we operate and our management’s understanding of industry conditions. While we believe that each of these studies and publications is reliable, we have not independently verified market and industry data from third-party sources. While we believe our internal company research is reliable and the market definitions are appropriate, neither such research nor these definitions have been verified by any independent source. The industry in which we operate is subject to a high degree of uncertainty and risks due to various factors, including those described in the section titled “Risk Factors”.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.

 

 

iii


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

ITERUM THERAPEUTICS PLC

Condensed Consolidated Balance Sheets

(In thousands except share and per share data)

(Unaudited)

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,816

 

 

$

21,092

 

Short-term investments

 

 

31,076

 

 

 

39,712

 

Income taxes receivable

 

 

 

 

 

302

 

Prepaid expenses and other current assets

 

 

2,635

 

 

 

1,338

 

Total current assets

 

 

38,527

 

 

 

62,444

 

Intangible asset, net

 

 

432

 

 

 

1,719

 

Property and equipment, net

 

 

59

 

 

 

69

 

Restricted cash

 

 

34

 

 

 

34

 

Other assets

 

 

676

 

 

 

2,567

 

Total assets

 

$

39,728

 

 

$

66,833

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

5,514

 

 

$

2,774

 

Accrued expenses

 

 

9,049

 

 

 

4,346

 

Derivative liability

 

 

75

 

 

 

196

 

Other current liabilities

 

 

1,712

 

 

 

1,748

 

Income taxes payable

 

 

46

 

 

 

 

Total current liabilities

 

$

16,396

 

 

$

9,064

 

Long-term debt, less current portion

 

 

12,462

 

 

 

10,094

 

Royalty-linked notes

 

 

7,131

 

 

 

18,372

 

Other liabilities

 

 

307

 

 

 

1,304

 

Total liabilities

 

$

36,296

 

 

$

38,834

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

Undesignated preferred shares, $0.01 par value per share: 100,000,000 shares
authorized at September 30, 2023 and December 31, 2022;
no shares issued at September 30, 2023 and December 31, 2022

 

 

 

 

 

 

Ordinary shares, $0.01 par value per share: 80,000,000 shares authorized at September 30, 2023; 20,000,000 shares authorized at December 31, 2022, 13,041,041 shares issued at September 30, 2023; 12,598,641 shares issued at December 31, 2022

 

 

130

 

 

 

126

 

Additional paid-in capital

 

 

452,235

 

 

 

451,150

 

Accumulated deficit

 

 

(448,936

)

 

 

(422,927

)

Accumulated other comprehensive income / (loss)

 

 

3

 

 

 

(350

)

Total shareholders' equity

 

 

3,432

 

 

 

27,999

 

Total liabilities and shareholders’ equity

 

$

39,728

 

 

$

66,833

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

1


 

ITERUM THERAPEUTICS PLC

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share data)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

(14,852

)

 

$

(4,353

)

 

$

(30,248

)

 

$

(11,777

)

General and administrative

 

 

(1,833

)

 

 

(2,681

)

 

 

(5,789

)

 

 

(10,680

)

Total operating expenses

 

 

(16,685

)

 

 

(7,034

)

 

 

(36,037

)

 

 

(22,457

)

Operating loss

 

 

(16,685

)

 

 

(7,034

)

 

 

(36,037

)

 

 

(22,457

)

Interest expense, net

 

 

(300

)

 

 

(636

)

 

 

(1,023

)

 

 

(2,441

)

Adjustments to fair value of derivatives

 

 

13,199

 

 

 

(4,834

)

 

 

11,361

 

 

 

2,498

 

Cancellation of share options

 

 

 

 

 

(17,350

)

 

 

 

 

 

(17,350

)

Other income, net

 

 

70

 

 

 

175

 

 

 

161

 

 

 

606

 

Total other income / (expense)

 

 

12,969

 

 

 

(22,645

)

 

 

10,499

 

 

 

(16,687

)

Loss before income taxes

 

 

(3,716

)

 

 

(29,679

)

 

 

(25,538

)

 

 

(39,144

)

Income tax (expense) / benefit

 

 

(161

)

 

 

570

 

 

 

(471

)

 

 

(200

)

Net loss

 

$

(3,877

)

 

$

(29,109

)

 

$

(26,009

)

 

$

(39,344

)

Net loss per share – basic and diluted

 

$

(0.30

)

 

$

(2.38

)

 

$

(2.02

)

 

$

(3.22

)

Weighted average ordinary shares outstanding – basic and diluted

 

 

13,039,437

 

 

 

12,233,374

 

 

 

12,888,869

 

 

 

12,217,188

 

Statements of Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,877

)

 

$

(29,109

)

 

$

(26,009

)

 

$

(39,344

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

  Unrealized gain on marketable securities

 

 

29

 

 

 

 

 

 

353

 

 

 

 

Comprehensive loss

 

$

(3,848

)

 

$

(29,109

)

 

$

(25,656

)

 

$

(39,344

)

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

2


 

ITERUM THERAPEUTICS PLC

Condensed Consolidated Statements of Cash Flows

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(26,009

)

 

$

(39,344

)

Adjustments to reconcile net loss to cash used in operating activities:

 

 

 

 

 

 

Depreciation

 

 

23

 

 

 

74

 

Amortization of intangible asset

 

 

1,287

 

 

 

1,287

 

Share-based compensation expense

 

 

645

 

 

 

4,301

 

Cancellation of share options

 

 

 

 

 

17,350

 

Interest on short-term investments

 

 

55

 

 

 

(81

)

Lease termination adjustments

 

 

473

 

 

 

 

Amortization of debt discount and deferred financing costs

 

 

1,753

 

 

 

1,748

 

Interest on exchangeable notes - non-cash

 

 

615

 

 

 

615

 

Adjustments to fair value of derivatives

 

 

(11,361

)

 

 

(2,498

)

Other

 

 

974

 

 

 

2,382

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

(2,560

)

 

 

(1,742

)

Accounts payable

 

 

2,741

 

 

 

351

 

Accrued expenses

 

 

4,778

 

 

 

2,577

 

Income taxes

 

 

355

 

 

 

(620

)

Other liabilities

 

 

(256

)

 

 

(608

)

Net cash used in operating activities

 

 

(26,487

)

 

 

(14,208

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(13

)

 

 

(17

)

Purchases of short-term investments

 

 

(36,002

)

 

 

(36,031

)

Proceeds from sale of short-term investments

 

 

45,828

 

 

 

45,627

 

Net cash provided by investing activities

 

 

9,813

 

 

 

9,579

 

Cash flows from financing activities:

 

 

 

 

 

 

Repayments of long-term debt

 

 

 

 

 

(2,251

)

Proceeds from issuance of ordinary shares, net of transaction costs

 

 

445

 

 

 

 

Net cash provided by / (used in) financing activities

 

 

445

 

 

 

(2,251

)

Effect of exchange rates on cash and cash equivalents

 

 

(47

)

 

 

(77

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(16,276

)

 

 

(6,957

)

Cash, cash equivalents and restricted cash, at beginning of period

 

 

21,126

 

 

 

27,510

 

Cash, cash equivalents and restricted cash, at end of period

 

$

4,850

 

 

$

20,553

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

Income taxes paid - U.S.

 

$

120

 

 

$

821

 

Interest paid

 

$

 

 

$

22

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


 

ITERUM THERAPEUTICS PLC

Condensed Consolidated Statements of Stockholders' Equity

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Ordinary Shares

 

 

Additional

 

 

 

 

 

Accumulated Other

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Paid
in Capital

 

 

Accumulated Deficit

 

 

Comprehensive Income (Loss)

 

 

Total

 

Balance at June 30, 2023

 

 

13,028,403

 

 

$

130

 

 

$

452,084

 

 

$

(445,059

)

 

$

(26

)

 

$

7,129

 

Issuance of ordinary shares, net

 

 

12,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

 

 

 

 

 

 

151

 

 

 

 

 

 

 

 

 

151

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(3,877

)

 

 

 

 

 

(3,877

)

Unrealized gain on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

29

 

Balance at September 30, 2023

 

 

13,041,041

 

 

$

130

 

 

$

452,235

 

 

$

(448,936

)

 

$

3

 

 

$

3,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary Shares

 

 

Additional

 

 

 

 

 

Accumulated Other

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Paid
in Capital

 

 

Accumulated Deficit

 

 

Comprehensive Income (Loss)

 

 

Total

 

Balance at December 31, 2022

 

 

12,598,641

 

 

$

126

 

 

$

451,150

 

 

$

(422,927

)

 

$

(350

)

 

$

27,999

 

Issuance of ordinary shares, net

 

 

442,400

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Share-based compensation expense

 

 

 

 

 

 

 

 

1,085

 

 

 

 

 

 

 

 

 

1,085

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(26,009

)

 

 

 

 

 

(26,009

)

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

353

 

 

 

353

 

Balance at September 30, 2023

 

 

13,041,041

 

 

$

130

 

 

$

452,235

 

 

$

(448,936

)

 

$

3

 

 

$

3,432

 

 

 

 

Ordinary Shares

 

 

Additional

 

 

 

 

 

Accumulated Other

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Paid
in Capital

 

 

Accumulated Deficit

 

 

Comprehensive Income (Loss)

 

 

Total

 

Balance at June 30, 2022

 

 

12,233,374

 

 

$

122

 

 

$

432,492

 

 

$

(388,728

)

 

$

 

 

$

43,886

 

Issuance of ordinary shares, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

 

 

 

 

 

 

422

 

 

 

 

 

 

 

 

 

422

 

Cancellation of share options

 

 

 

 

 

 

 

 

17,350

 

 

 

 

 

 

 

 

 

17,350

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(29,109

)

 

 

 

 

 

(29,109

)

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2022

 

 

12,233,374

 

 

$

122

 

 

$

450,264

 

 

$

(417,837

)

 

$

 

 

$

32,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary Shares

 

 

Additional

 

 

 

 

 

Accumulated Other

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Paid
in Capital

 

 

Accumulated Deficit

 

 

Comprehensive Income (Loss)

 

 

Total

 

Balance at December 31, 2021

 

 

12,185,019

 

 

$

122

 

 

$

428,605

 

 

$

(378,493

)

 

$

 

 

$

50,234

 

Issuance of ordinary shares, net

 

 

48,355

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

8

 

Share-based compensation expense

 

 

 

 

 

 

 

 

4,301

 

 

 

 

 

 

 

 

 

4,301

 

Cancellation of share options

 

 

 

 

 

 

 

 

17,350

 

 

 

 

 

 

 

 

 

17,350

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(39,344

)

 

 

 

 

 

(39,344

)

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2022

 

 

12,233,374

 

 

$

122

 

 

$

450,264

 

 

$

(417,837

)

 

$

 

 

$

32,549

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


ITERUM THERAPEUTICS PLC

Notes to Unaudited Condensed Consolidated Financial Statements
(In thousands, except share and per share data)

 

 

1. Basis of Presentation

Description of Business

Iterum Therapeutics plc (the Company) was incorporated under the laws of the Republic of Ireland in June 2015 as a limited company and re-registered as a public limited company on March 20, 2018. The Company maintains its registered office at Fitzwilliam Court, 1st Floor, Leeson Close, Dublin 2, Ireland. The Company commenced operations in November 2015. The Company licensed global rights to its novel anti-infective compound, sulopenem, from Pfizer Inc. (Pfizer). The Company is a clinical-stage pharmaceutical company dedicated to developing and commercializing sulopenem to be potentially the first oral penem available in the United States and the first and only oral and intravenous (IV) branded penem available globally.

Liquidity and Going Concern

Since inception, the Company has devoted substantially all of its efforts to research and development, recruiting management and technical staff, and raising capital, and has financed its operations through the issuance of ordinary and convertible preferred shares, debt raised under a financing arrangement with Silicon Valley Bank (SVB) including the Paycheck Protection Program loan (PPP loan), a sub-award from the Trustees of Boston University under the Combating Antibiotic Resistant Bacteria Biopharmaceutical Accelerator (CARB-X) program and the proceeds of a private placement (Private Placement) and subsequent rights offering (Rights Offering) pursuant to which its wholly owned subsidiary, Iterum Therapeutics Bermuda Limited (Iterum Bermuda) issued and sold approximately $51.8 million aggregate principal amount of 6.500% Exchangeable Senior Subordinated Notes due 2025 (Exchangeable Notes) and $0.1 million aggregate principal amount of Limited Recourse Royalty-Linked Subordinated Notes (the RLNs and, together with the Exchangeable Notes, the Securities). The Company has not generated any product revenue. The Company is subject to risks and uncertainties common to early-stage companies in the pharmaceutical industry, including, but not limited to, the ability to secure additional capital to fund operations, failure to achieve regulatory approval, failure to successfully develop and commercialize its product candidates, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology and compliance with government regulations. Product candidates currently under development will require additional research and development efforts, including regulatory approval prior to commercialization.

Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales.

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of the Company and its subsidiaries.

The Company's shareholders approved a reverse share split of the Company's ordinary shares on June 15, 2022, which became effective on August 17, 2022, (the Reverse Share Split). As of 5:00 p.m. Eastern Standard Time on August 17, 2022, every fifteen ordinary shares of $0.01 each (nominal value) in the authorized and unissued and authorized and issued share capital of the Company were consolidated into one ordinary share of $0.15 each (nominal value), and the nominal value of each ordinary share was subsequently reduced from $0.15 to $0.01 nominal value per share. No fractional shares were issued to any shareholders in connection with the Reverse Share Split. Shareholders who were otherwise entitled to receive a fractional ordinary share instead received a cash payment in an amount equal to the net cash proceeds attributable to the sale of such fractional entitlement following aggregation and sale by the Company on behalf of each of the relevant shareholders of the Company's ordinary shares, on the basis of prevailing market prices at such time. As the par value per share of the Company's shares remained at $