NOTE 6 – DECONSOLIDATION OF BIOMX LTD

On January 25, 2026, following the commencement of insolvency proceedings with respect to BiomX Israel, the District Court of the Central District, in Lod, Israel, appointed a trustee (the “Trustee”) to BiomX Israel to administer the insolvency proceedings. The Trustee was granted authority to manage BiomX Israel’s assets and operations, evaluating claims from creditors, and overseeing the orderly wind-down or restructuring of BiomX Israel’s operations in accordance with applicable Israeli insolvency law. On February 4, 2026, the Trustee notified BiomX Israel’s Chief Executive Officer and Chief Financial Officer that their roles as officers of BiomX Israel had been terminated. Based on the transfer of decision-making authority to the Trustee and the Company’s resulting inability to direct the activities that most significantly affect BiomX Israel’s economic performance, the Company concluded that it no longer had a controlling financial interest in BiomX Israel as of February 4, 2026. The Company determined that the termination is considered as a change of control as of February 4, 2026, and that BiomX Israel should be deconsolidated from the Company’s consolidated financial statements. The Company does not expect to recover any significant value from its investment in BiomX Israel.

Accordingly, the Company deconsolidated BiomX Israel on February 4, 2026 and derecognized its assets and liabilities. Any retained ownership interest was measured at fair value at the deconsolidation date and was determined to have no material value.

During the six months ended June 30, 2026, the Company recognized a gain from deconsolidation of Biomx Ltd. of approximately $1,860, which is included in net gain from deconsolidation.

The carrying amounts of the assets and liabilities of BiomX Israel derecognized upon deconsolidation were as follows: