0001593984 2025-01-01 2025-12-31 0001593984 2025-04-01 2025-06-30 0001593984 2026-04-01 2026-06-30 0001593984 2025-01-01 2025-06-30 0001593984 2026-01-01 2026-06-30 0001593984 2024-12-31 0001593984 2026-03-31 0001593984 2025-12-31 0001593984 2025-06-30 0001593984 2026-06-30 0001593984 2025-03-31 0001593984mdwd:SeriesAWarrantsMembermdwd:SubsequentsEventMember 2026-07-31 0001593984mdwd:SeriesAWarrantsMembermdwd:SubsequentsEventMember 2026-08-31 0001593984mdwd:SeriesAWarrantsMembermdwd:SubsequentsEventMember 2026-07-01 2026-07-31 0001593984mdwd:SeriesAWarrantsMembermdwd:SubsequentsEventMember 2026-08-01 2026-08-31 0001593984mdwd:BardaMember 2026-04-30 0001593984mdwd:EmployeesOfficersBoardMembersMembermdwd:SubsequentsEventMember 2026-08-01 2026-08-12 0001593984mdwd:EmployeesOfficersBoardMembersMemberifrs-full:ShareOptionsMember 2026-03-04 2026-03-04 0001593984mdwd:EmployeesOfficersBoardMembersMemberifrs-full:ShareOptionsMember 2026-03-04 0001593984mdwd:EmployeesOfficersBoardMembersMembermdwd:RestrictedSharesUnitsMember 2026-03-04 2026-03-04 0001593984mdwd:SeriesAWarrantsMember 2026-05-25 2026-05-25 0001593984mdwd:BlackAndScholesModelMember 2026-05-25 2026-05-25 0001593984mdwd:BlackAndScholesModelMember 2025-12-31 0001593984mdwd:BlackAndScholesModelMember 2024-12-31 0001593984mdwd:BlackAndScholesModelMember 2025-06-30 0001593984mdwd:BlackAndScholesModelMember 2026-06-30 0001593984mdwd:BlackAndScholesModelMember 2025-01-01 2025-12-31 0001593984mdwd:BlackAndScholesModelMember 2025-01-01 2025-06-30 0001593984mdwd:BlackAndScholesModelMember 2026-01-01 2026-06-30 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2026-04-01 2026-06-30 0001593984ifrs-full:SharePremiumMember 2026-04-01 2026-06-30 0001593984ifrs-full:IssuedCapitalMember 2026-04-01 2026-06-30 0001593984ifrs-full:RetainedEarningsMember 2026-04-01 2026-06-30 0001593984ifrs-full:RetainedEarningsMember 2026-06-30 0001593984ifrs-full:SharePremiumMember 2026-06-30 0001593984ifrs-full:IssuedCapitalMember 2026-06-30 0001593984ifrs-full:RetainedEarningsMember 2025-03-31 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2025-03-31 0001593984ifrs-full:SharePremiumMember 2025-03-31 0001593984ifrs-full:RetainedEarningsMember 2025-04-01 2025-06-30 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2025-04-01 2025-06-30 0001593984ifrs-full:SharePremiumMember 2025-04-01 2025-06-30 0001593984ifrs-full:IssuedCapitalMember 2025-04-01 2025-06-30 0001593984ifrs-full:RetainedEarningsMember 2025-06-30 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2025-06-30 0001593984ifrs-full:SharePremiumMember 2025-06-30 0001593984ifrs-full:IssuedCapitalMember 2025-06-30 0001593984ifrs-full:RetainedEarningsMember 2026-01-01 2026-06-30 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2026-01-01 2026-06-30 0001593984ifrs-full:SharePremiumMember 2026-01-01 2026-06-30 0001593984ifrs-full:IssuedCapitalMember 2026-01-01 2026-06-30 0001593984ifrs-full:SharePremiumMember 2025-12-31 0001593984ifrs-full:IssuedCapitalMember 2025-12-31 0001593984ifrs-full:RetainedEarningsMember 2025-01-01 2025-06-30 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2025-01-01 2025-06-30 0001593984ifrs-full:SharePremiumMember 2025-01-01 2025-06-30 0001593984ifrs-full:IssuedCapitalMember 2025-01-01 2025-06-30 0001593984ifrs-full:RetainedEarningsMember 2025-01-01 2025-12-31 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2025-01-01 2025-12-31 0001593984ifrs-full:SharePremiumMember 2025-01-01 2025-12-31 0001593984ifrs-full:IssuedCapitalMember 2025-01-01 2025-12-31 0001593984ifrs-full:RetainedEarningsMember 2024-12-31 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2024-12-31 0001593984ifrs-full:SharePremiumMember 2024-12-31 0001593984ifrs-full:IssuedCapitalMember 2024-12-31 0001593984ifrs-full:RetainedEarningsMember 2025-12-31 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2025-12-31 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2026-06-30 0001593984ifrs-full:IssuedCapitalMember 2025-03-31 0001593984ifrs-full:RetainedEarningsMember 2026-03-31 0001593984ifrs-full:ReserveOfChangeInValueOfForeignCurrencyBasisSpreadsMember 2026-03-31 0001593984ifrs-full:SharePremiumMember 2026-03-31 0001593984ifrs-full:IssuedCapitalMember 2026-03-31 0001593984mdwd:USDepartmentOfDefenseMember 2022-02-17 0001593984mdwd:BardaMember 2025-09-01 2025-09-30 0001593984mdwd:BardaMember 2025-12-31 0001593984mdwd:BardaMember 2025-01-01 2025-12-31 0001593984mdwd:USDepartmentOfDefenseMember 2023-12-31 0001593984mdwd:USDepartmentOfDefenseMember 2024-05-31 0001593984mdwd:USDepartmentOfDefenseMember 2026-06-30 0001593984mdwd:USDepartmentOfDefenseMember 2025-04-30 0001593984mdwd:BardaMember 2023-05-31 0001593984 2023-05-31 0001593984mdwd:USDepartmentOfDefenseMember 2025-07-31 iso4217:ILSxbrli:shares xbrli:pure mdwd:Share xbrli:shares iso4217:USD iso4217:USDxbrli:shares
 

Exhibit 99.2

 

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

AS OF JUNE 30, 2026

 

IN U.S. DOLLARS IN THOUSANDS

 

UNAUDITED

 

INDEX

 

 Page
  
  
Unaudited Condensed Interim Consolidated Statements of Financial PositionF-2
  
Unaudited Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income or LossF-3
  
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ EquityF-4 – F-5
  
Unaudited Condensed Interim Consolidated Statements of Cash FlowsF-6 – F-7
  
Notes to Unaudited Condensed Interim Consolidated Financial StatementsF-8 – F-11

 

- - - - - - - - - - - - -

 

 

 

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Unaudited Condensed Interim Consolidated Statements of Financial Position

U.S. dollars in thousands

 

    June 30,     December 31,  
    2026     2025     2025  
                   
Cash and cash equivalents     4,344       1,059       4,799  
Short-term bank deposits     30,997       31,377       48,341  
Trade receivables     1,689       5,012       1,621  
Inventories     4,117       3,843       4,093  
Other receivables     1,804       1,788       1,110  
Total current assets     42,951       43,079       59,964  
                         
Other receivables     88       37       28  
Long-term restricted bank deposits     449       453       439  
Property, plant and equipment     21,356       15,724       18,640  
Right-of-use assets     7,035       7,642       7,151  
Intangible assets     -       66       33  
Total non-current assets     28,928       23,922       26,291  
                         
Total assets     71,879       67,001       86,255  
                         
Current maturities of long-term liabilities     932       822       870  
Warrants     4,736       18,992       12,659  
Trade payables and accrued expenses     7,626       5,880       7,648  
Other payables     5,249       3,377       4,531  
Total current liabilities     18,543       29,071       25,708  
                         
Grants received in advance     -       758       -  
Liabilities in respect of IIA grants     8,784       8,504       8,291  
Lease liabilities     8,605       8,070       8,152  
Severance pay liability, net     303       479       472  
Total non-current liabilities     17,692       17,811       16,915  
                         
Total liabilities     36,235       46,882       42,623  
                         
Shareholders' equity:                        
Ordinary shares of NIS 0.07 par value:                        
Authorized: 20,000,000 shares as of June 30, 2026; December 31, 2025 and June 30, 2025; Issued and Outstanding: 12,910,278 as of June 30, 2026; 12,835,185 as of December 31, 2025; and 10,875,631 as of June 30, 2025     260       216       258  
Share premium     274,674       239,014       272,331  
Foreign currency translation adjustments     (21 )     (21 )     (32 )
Accumulated deficit     (239,269 )     (219,090 )     (228,925 )
Total equity     35,644       20,119       43,632  
                         
Total liabilities and equity     71,879       67,001       86,255  

 

The accompanying notes are an integral part of the interim financial statements.

F - 2 

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Unaudited Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income or Loss

U.S. dollars in thousands (except for share and per share data)

 

   

Six months ended

June 30,

   

Three months ended

June 30,

   

Year ended December 31,

 
    2026     2025     2026     2025     2025  
Revenues from sale of products     3,139       3,162       2,611       1,754       5,769  
Revenues from development services     1,229       6,314       371       3,874       10,800  
Revenues from license agreements and royalties     199       187       110       80       390  
Total revenues     4,567       9,663       3,092       5,708       16,959  
                                         
Cost of revenues from sale of products     2,848       2,412       2,414       1,302       4,727  
Cost of revenues from development services     1,047       5,156       333       3,056       8,946  
Cost of revenues from license agreements and royalties     12       15       8       8       32  
Total cost of revenues     3,907       7,583       2,755       4,366       13,705  
                                         
Gross profit     660       2,080       337       1,342       3,254  
                                         
Research and development     11,086       6,377       5,901       3,491       14,320  
Selling and marketing     2,849       2,749       1,592       1,462       5,765  
General and administrative     4,602       3,891       2,302       2,105       8,448  
Other expenses (income)     (439 )     4       -       -       (13 )
Total operating expenses     18,098       13,021       9,795       7,058       28,520  
                                         
Operating loss     (17,438 )     (10,941 )     (9,458 )     (5,716 )     (25,266 )
                                         
Financial income     8,692       925       3,220       429       4,017  
Financial expenses     (1,582 )     (3,985 )     (1,121 )     (7,993 )     (2,461 )
Financing income (expenses), net     7,110       (3,060 )     2,099       (7,564 )     1,556  
                                         
Loss before taxes on income     (10,328 )     (14,001 )     (7,359 )     (13,280 )     (23,710 )
                                         
Taxes on income     (16 )     (43 )     (33 )     (38 )     (169 )
                                         
 Net loss     (10,344 )     (14,044 )     (7,392 )     (13,318 )     (23,879 )
                                         
Other comprehensive income (loss):                                        
Foreign currency translation adjustments     11       (10 )     5       (11 )     (21 )
                                         
Total comprehensive loss     (10,333 )     (14,054 )     (7,387 )     (13,329 )     (23,900 )
                                         
Loss per share data:                                        
Basic net loss per share     (0.80 )     (1.30 )     (0.57 )     (1.23 )     (2.10 )
 Diluted net loss per share     (1.36 )     (1.30 )     (0.77 )     (1.23 )     (2.10 )
Number of shares used in calculating basic loss per share     12,861,870       10,816,990       12,883,835       10,835,251       11,376,571  
Number of shares used in calculating diluted loss per share     13,261,930       10,816,990       13,206,306       10,835,251       11,376,571  

 

The accompanying notes are an integral part of the interim consolidated financial statements.
 

F - 3 

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity

U.S. dollars in thousands

 

    Share capital     Share premium     Foreign currency translation reserve    

Accumulated

deficit

   

Total

equity

 
Balance as of April 1, 2026     258       273,069       (26 )     (231,877 )     41,424  
                                         
Loss for the period     -       -       -       (7,392 )     (7,392 )
Other comprehensive income     -       -       5               5  
Total comprehensive loss     -       -       5       (7,392 )     (7,387 )
Exercise of options and warrants     2       850       -       -       852  
Share-based compensation     -       755       -       -       755  
                                         
Balance as of June 30, 2026 (unaudited)     260       274,674       (21 )     (239,269 )     35,644  
                                         
Balance as of April 1, 2025     215       236,839       (10 )     (205,772 )     31,272  
                                         
Loss for the period     -       -       -       (13,318 )     (13,318 )
Other comprehensive loss     -       -       (11 )     -       (11 )
Total comprehensive loss     -       -       (11 )     (13,318 )     (13,329 )
Exercise of options and warrants     1       1,313       -       -       1,314  
                                         
Share-based compensation     -       862       -       -       862  
                                         
Balance as of June 30, 2025 (unaudited)     216       239,014       (21 )     (219,090 )     20,119  

 

The accompanying notes are an integral part of the interim consolidated financial statements.

 

F - 4 

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity

U.S. dollars in thousands

 

    Share capital     Share premium     Foreign currency translation reserve    

Accumulated

deficit

   

Total

equity

 
Balance as of December 31, 2025 (audited)     258       272,331       (32 )     (228,925 )     43,632  
Loss for the period     -       -       -       (10,344 )     (10,344 )
Other comprehensive income                     11               11  
Total comprehensive loss     -       -       11       (10,344 )     (10,333 )
Exercise of options and warrants     2       944       -       -       946  
Share-based compensation             1,399       -       -       1,399  
Balance as of June 30, 2026 (unaudited)     260       274,674       (21 )     (239,269 )     35,644  
                                         
Balance as of December 31, 2024 (audited)     215       235,995       (11 )     (205,046 )     31,153  
Loss for the period     -       -       -       (14,044 )     (14,044 )
Other comprehensive loss                     (10 )     -       (10 )
Total comprehensive loss     -       -       (10 )     (14,044 )     (14,054 )
Exercise of options and warrants     1       1,313       -       -       1,314  
Share-based compensation     -       1,706       -       -       1,706  
Balance as of June 30, 2025 (unaudited)     216       239,014       (21 )     (219,090 )     20,119  
                                         
Balance as of December 31, 2024 (audited)     215       235,995       (11 )     (205,046 )     31,153  
Loss for the period     -       -       -       (23,879 )     (23,879 )
Other comprehensive loss     -       -       (21 )     -       (21 )
Total comprehensive loss     -       -       (21 )     (23,879 )     (23,900 )
Exercise of options and warrants     6       5,899       -       -       5,905  
Issuance of ordinary shares, net of issuance expenses     37       27,329       -       -       27,366  
Share-based compensation     -       3,108       -       -       3,108  
Balance as of  December  31, 2025 (audited)     258       272,331       (32 )     (228,925 )     43,632  

 

The accompanying notes are an integral part of the interim consolidated financial statements.

 

F - 5 

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Unaudited Condensed Interim Consolidated Statements of Cash Flows

U.S. dollars in thousands

 

   

Six months ended

June 30,

   

Three months ended

June 30,

   

Year ended December 31,

 
    2026     2025     2026     2025     2025  
Cash flows from operating activities:                                        
Net loss     (10,344 )     (14,044 )     (7,392 )     (13,318 )     (23,879 )
                                         
Adjustments to reconcile net loss to net cash used in operating activities:                                        
                                         
Adjustments to profit and loss items:                                        
Depreciation and amortization     780       752       402       394       1,860  
Share-based compensation     1,399       1,706       755       862       3,108  
Revaluation of warrants accounted at fair value     (7,747 )     2,377       (2,811 )     6,647       (2,158 )
Revaluation of liabilities in respect of IIA grants     539       446       305       203       380  
Financing expenses and exchange differences of lease liability     960       943       725       938       1,725  
Increase (decrease) in severance pay liability, net     (147 )     75       9       48       31  
Other expenses (income)     -       4       -       -       (13 )
Financial income, net     (925 )     (942 )     (391 )     (424 )     (1,891 )
Un-realized foreign currency gain     (91 )     (21 )     (107 )     (6 )     (51 )
      (5,232 )     5,340       (1,113 )     8,662       2,991  
Changes in asset and liability items:                                        
                                         
Decrease (increase) in trade receivables     (83 )     (217 )     (478 )     (1,671 )     3,211  
Decrease (increase) in inventories     (31 )     (1,151 )     655       (263 )     (1,363 )
Decrease (increase) in other receivables     (1,300 )     (341 )     (567 )     37       1,665  
Increase (decrease) in trade payables and accrued expenses     (151 )     691       37       794       2,350  
Increase in grants received in advance     724       -       -       -       -  
Increase (decrease) in other payables     536       (144 )     (269 )     3       (1,096 )
      (305 )     (1,162 )     (622 )     (1,100 )     4,767  
                                         
Net cash used in operating activities     (15,881 )     (9,866 )     (9,127 )     (5,756 )     (16,121 )

 

The accompanying notes are an integral part of the interim consolidated financial statements.

 

F - 6 

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Unaudited Condensed Interim Consolidated Statements of Cash Flows

U.S. dollars in thousands

 

   

Six months ended

June 30,

   

Three months ended

June 30,

   

Year ended December 31,

 
    2026     2025     2026     2025     2025  
                               
Cash flows from investing activities:                                        
                                         
Purchase of property and equipment     (2,894 )     (2,008 )     (1,074 )     (1,049 )     (5,505 )
Interest received     659       585       83       319       1,591  
Proceeds from (investment in) short-term bank deposits, net     17,600       2,985       (1,400 )     5,635       (14,036 )
                                         
Net cash provided by (used in) investing activities     15,365       1,562       (2,391 )     4,905       (17,950 )
                                         
Cash flows from financing activities:                                        
                                         
Repayment of lease liabilities     (702 )     (537 )     (365 )     (289 )     (1,212 )
Proceeds from exercise of warrants and share options     767       838       767       838       3,630  
Proceeds from issuance of shares     -       -       -       -       27,416  
Repayment of IIA grants     (84 )     (114 )     -       -       (214 )
                                         
Net cash provided by (used in) financing activities     (19 )     187       402       549       29,620  
                                         
Exchange rate differences on cash and cash equivalent balances     80       21       109       2       95  
                                         
Decrease in cash and cash equivalents     (455 )     (8,096 )     (11,007 )     (300 )     (4,356 )
                                         
Balance of cash and cash equivalents at the beginning of the period     4,799       9,155       15,351       1,359       9,155  
                                         
Balance of cash and cash equivalents at the end of the period     4,344       1,059       4,344       1,059       4,799  
                                         
Supplemental disclosure of non-cash transactions:                                        
ROU asset, net, recognized with corresponding lease liability     208       1,254       81       1,080       1,433  
Purchase of property and equipment in trade payables     (395 )     (249 )     (169 )     (91 )     (268 )

 

The accompanying notes are an integral part of the interim consolidated financial statements.

 

F - 7 

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Notes to Unaudited Condensed Interim Consolidated Financial Statements

U.S. dollars in thousands

Note 1: General

 

a. Description of the Company and its operations:

 

MediWound Ltd. was incorporated in Israel in January 2000. The Company which is located in Yavne, Israel (the "Company" or "MediWound"), is a biopharmaceutical company that develops, manufactures and commercializes novel, cost effective, bio-therapeutic, non-surgical solutions for tissue repair and regeneration. The Company’s strategy leverages its breakthrough enzymatic technology platform into a diversified portfolio of biotherapeutics across multiple indications to pioneer solutions for unmet medical needs. The Company’s current portfolio is focused on next-generation protein-based therapies for burn care, wound care and tissue repair.

 

The Company's first innovative biopharmaceutical product, NexoBrid, has received in December 2022, an approval from the U.S. Food and Drug Administration (“FDA”) and marketing approval in each country of India, Switzerland and Japan. In addition, it has a marketing authorization from the European Medicines Agency (“EMA”) and regulatory agencies in other international markets for removal of dead or damaged tissue, known as eschar, in adults with deep partial and/or full-thickness thermal burns.

 

The Company commercializes NexoBrid globally through multiple sales channels.

 

The Company sells NexoBrid to burn centers in the European Union, United Kingdom and Israel, primarily through its commercial organizations.

 

The Company has established local distribution channels in multiple international markets, including Asia Pacific, EMEA, CEE and LATAM, which local distributors are also responsible for obtaining local marketing authorization within the relevant territories.

 

In the United States, the Company entered into exclusive license and supply agreements with Vericel Corporation (“Vericel”) to commercialize NexoBrid in North America. On September 21, 2023, the Company announced the U.S. commercial availability of NexoBrid for the removal of eschar in adults with deep partial and/or full-thickness thermal burns.

 

In August 2024, the Company announced that the FDA has approved a pediatric indication for NexoBrid allowing for eschar removal in pediatric patients aged newborn through eighteen with deep partial and/or full-thickness thermal burns. With this FDA approval, NexoBrid is now authorized for use in the U.S. for all age groups, aligning with its approvals in the European Union and Japan.

 

The Company’s second investigational next-generation enzymatic therapy product, EscharEx, is a topical biological drug being developed for debridement of chronic and other hard-to-heal wounds.

 

In February 2025, the Company announced the initiation of VALUE, a global, pivotal Phase III trial evaluating EscharEx for the treatment of venous leg ulcers (VLUs).

 

F - 8

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Notes to Unaudited Condensed Interim Consolidated Financial Statements


U.S. dollars in thousands
 
Note 1: General (Cont.)
   
b. The Company's securities are listed for trading on NASDAQ since March 2014.

 

c. The Company has three wholly owned subsidiaries: MediWound Germany GmbH, acting as Europe (“EU”) marketing authorization holder and EU sales and marketing arm, MediWound UK Limited and MediWound US, Inc. which are currently inactive companies.

 

d. BARDA Contracts:

 

In September 2015, the Company was awarded a Biomedical Advanced Research and Developments Authority (“BARDA”) contract for treatment of thermal burn injuries.

 

This contract was amended multiple times to extend its term until September 2025 and its total value, up to a total amount of $165,000 as of the end of 2022.

 

In May 2023, BARDA has awarded an additional approximately $10,000 to the Company. The total amount of the contract is comprised of $110,000 to support research and development activities and up to $65,000 to procure Nexobrid for U.S. emergency preparedness (which will be split between the Company and Vericel following Vericel’s agreement).

 

As of December 31, 2025, the Company has recognized approximately $99,809 in the aggregate, from BARDA for support of its research and development activities and an additional $16,500 for procurement of Nexobrid for U.S. emergency preparedness, which were recorded at the net amount of approximately $10,500 following the split of gross profit agreement with Vericel for the initial BARDA procurement. The contract expired in September 2025. (See also note 4.2)

 

e. DOW and MTEC contracts:

 

On February 17, 2022, the Company entered into a contract with the U.S. Department of War (DOW), through the Medical Technology Enterprise Consortium (MTEC), to develop NexoBrid as a non-surgical solution for field-care burn treatment for the U.S. Army. The contract provides funding up to $2,727.

 

During 2023, the DOW through MTEC awarded the Company additional funding of $9,117.

 

In addition, the Company was awarded directly through MTEC funding of $1,190, to advance the development of a new temperature stable formulation of NexoBrid.

 

In May 2024 the Company was awarded additional funding of $1,557 from the DOW through MTEC. In April 2025 the Company was awarded additional funding of $937 from the DOW through MTEC. In July 2025 the Company was awarded additional funding of $2,715 from the DOW through MTEC. The total funding from the DOW and MTEC is $18,243.

 

F - 9

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Notes to Unaudited Condensed Interim Consolidated Financial Statements


U.S. dollars in thousands
 
Note 1: General (Cont.)
   
f. The accompanying consolidated financial statements have been prepared on a basis which assumes that the Company will continue as a going concern. From inception to June 30, 2026, the Company has incurred cash outflows from operations, losses from operations, and has an accumulated deficit of $239.3 million.

 

The Company believes that its existing cash and cash equivalents, and bank deposits of $35.8 million as of June 30, 2026, will be sufficient to fund its operations and capital expenditure for at least twelve months from the date of issuance of these consolidated financial statements.

 

g. In October 2023, Israel was attacked by a terrorist organization and entered a state of war. On June 13, 2025, Israel launched Operation “Rising Lion”, a direct military campaign targeting Iranian military and nuclear infrastructure in response to escalating regional security threats. A ceasefire between Israel and Iran was declared on June 24, 2025. In October 2025, a ceasefire was reached between Israel and Hamas in the Gaza Strip. On February 28, 2026, a joint military operation by the United States and Israel against Iran commenced following escalating regional tensions. In response, Iran launched ballistic missiles and unmanned aerial vehicles toward Israel. On March 1, 2026, hostilities further expanded following rocket fire from Lebanon toward Israel. On April 8, 2026, a ceasefire was announced between the United States and Iran.

 

The Company's headquarters, manufacturing and R&D facilities are located in Israel. Despite these developments, the Company's operations have remained largely unaffected, and during the period ended June 30, 2026, the impact on the Company's results of operations and financial condition was not material. Nevertheless, the regional security and geopolitical environment remains sensitive and dynamic, and management continues to closely monitor developments and assess their potential impact on the Company's operations and financial condition in the future.

 

Note 2: Material Accounting Policies

 

a. Basis of preparation of the interim consolidated financial statements:

 

The interim condensed consolidated financial statements for the six and three months ended June 30, 2026, have been prepared in accordance with IAS 34 "Interim Financial Reporting".

 

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and do not include all of the information required for full annual financial statements. They should be read in conjunction with the financial statements as at and for the year ended December 31, 2025 (hereinafter – “the annual financial statements”). These condensed consolidated interim financial statements were authorized for issue by the Group’s Board of Directors on August 13, 2026.

 

b. Use of judgements and estimates:

 

In preparing these interim financial statements, management has made judgements and estimates about the future, including climate-related risks and opportunities, that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

 

The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual financial statements.

 

Note 3: Equity

 

1. On March 4, 2026, the Company’s Board of Directors approved the grant of 280,150 share options and 31,800 restricted share units (RSUs) to officers, directors and employees of the Company. The share options have an exercise price of $17.60 per share and will vest over a period of 1 to 4 years.

 

F - 10

MEDIWOUND LTD. AND ITS SUBSIDIARIES

 

Notes to Unaudited Condensed Interim Consolidated Financial Statements


U.S. dollars in thousands
 
Note 3: Equity (Cont.)
   
2. On May 25, 2026, 50,000 Series A warrants were exercised into the Company's ordinary shares at an exercise price of $13.475 per ordinary share, in accordance with the terms of the Series A warrant.

 

The fair value of the warrants which are classified as current liabilities was measured by using the Black-Scholes model. The following inputs were used to determine the fair value:

 

Contractual period of warrants–0.41 years.

Expected volatility – 43.7%

Risk-free interest rate – 3.96%

Expected dividend yield – 0%.

 

    Jun-30     Dec-31  
    2026     2025     2025  
                         
Balance as of January 1     12,659       17,092       17,092  
Exercise of warrants     (176 )     (477 )     (2,275 )
Revaluation of warrants accounted at fair value     (7,747 )     2,377       (2,158 )
Balance at the end of the period     4,736       18,992       12,659  

 

Note 4: Subsequent events

 

1. In July and August 2026, 83,487 Series A warrants were exercised into the Company's ordinary shares at an exercise price of $13.475 per ordinary share, for aggregate gross proceeds of $1,125 to the Company.

 

2. In April 2026, Vericel was awarded a ten-year BARDA contract valued at up to $197 million to support NexoBrid procurement, vendor-managed inventory services, potential blast-trauma indication development, and next-generation manufacturing and formulation capabilities (The “BARDA Contract”).
   
 

In connection with the “BARDA Contract” the Company and Vericel entered into a Master Services Agreement (the “MSA”), in August 2026, covering NexoBrid and next-generation product development activities. Under the MSA, the Company expects to begin recognizing revenue in the second half of 2026 by participating in a next generation development program that has been initiated to support the potential expansion of NexoBrid for use in blast- and friction-related injuries, leveraging real-world evidence.

 

  3. On August 12, 2026, the Company’s Board of Directors approved the grant of 4,000 share options to a service provider.

 

F - 11