http://fasb.org/srt/2026#ChiefExecutiveOfficerMember 1 1 false 0001828098 2026 Q2 --12-31 2026-06-30

Exhibit 99.1

 

STEAKHOLDER FOODS LTD

 

Steakholder Foods Ltd.

 

Unaudited Condensed Consolidated Interim Financial Statements As At June 30, 2026

 

  Page
Financial statements of Steakholder Foods Ltd.   
     
Contents:    
Unaudited Condensed consolidated Interim balance sheets   2
Unaudited Condensed consolidated Interim statement of comprehensive loss   3
Unaudited Condensed consolidated Interim statements of changes in equity   4
Unaudited Condensed consolidated Interim statements of cash flows   5
Notes to the condensed consolidated Interim financial statements   6

 

1

 

 

STEAKHOLDER FOODS LTD

 

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)

U.S. dollars in thousands (except share data)

 

    June 30,     December 31,  
    2026     2025  
ASSETS            
             
CURRENT ASSETS:            
Cash and cash equivalents     1,056       3,087  
Marketable securities     -       14  
Restricted deposits     34       201  
Inventory     67       -  
Prepaid expenses and other current assets     442       388  
                 
Total current assets     1,599       3,690  
                 
NON-CURRENT ASSETS:                
Restricted deposits     29       27  
Long-term receivables     -       10  
Right-of-use asset     83       -  
Property and equipment, net     1,436       1,566  
                 
Total non-current assets     1,548       1,603  
                 
Total Assets     3,147       5,293  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
CURRENT LIABILITIES:                
Accounts payables and accruals     737       778  
Other liabilities     47       77  
Trade payables     5       39  
Current lease liability     88       -  
                 
Total current liabilities     877       894  
                 
COMMITMENTS AND CONTINGENT LIABILITIES                
                 
SHAREHOLDERS’ EQUITY                
Ordinary shares – no par value, Authorized 50,000,000,000 shares. Issued and outstanding 7,794,516,659 and 5,438,836,659 at June 30, 2026 and December 31, 2025, respectively     -       -  
Additional paid-in capital     95,507       94,343  
Accumulated deficit     (93,237 )     (89,944 )
                 
Total shareholders’ equity     2,270       4,399  
                 
Total liabilities and shareholders’ equity     3,147       5,293  

 

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

 

2

 

 

STEAKHOLDER FOODS LTD

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

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

 

    Six months ended
June 30,
 
    2026     2025  
             
Revenue     -       -  
Cost of goods sold     264       -  
Gross loss     264       -  
                 
Research and development     844       1,158  
Marketing     590       363  
General and administrative     1,626       1,924  
                 
Total operating loss     3,324       3,445  
                 
Financial expenses (income), net     (38 )     193  
Other expenses     7       206  
                 
Total comprehensive loss     3,293       3,844  
                 
Net loss per share– basic and diluted     0.0005       0.0071  
Weighted average shares outstanding – basic and diluted     6,780,167,748       544,608,702  

 

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

 

3

 

 

STEAKHOLDER FOODS LTD

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)

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

 

    Ordinary Shares     Additional Paid-in     Accumulated     Total Shareholders’  
    Shares     Value(*)     Capital     deficit     Equity  
Balance as of December 31, 2025     5,438,836,659              -       94,343       (89,944 )     4,399  
                                         
Share-based compensation     580,744,000       -       72       -       72  
Issuance of shares, net     88,460,000       -       52       -       52  
Issuance of shares according to the ATMOA     320,768,000       -       101       -       101  
Issuance and exercise of warrants, net     1,365,708,000       -       939       -       939  
Net loss for the period     -       -       -       (3,293 )     (3,293 )
Balance as of June 30, 2026     7,794,516,659       -       95,507       (93,237 )     2,270  

 

(*) No par value

 

    Ordinary Shares     Receivables
on account
   

Additional

Paid-in

    Accumulated     Total
Shareholders’
 
    Shares     Value(*)     of shares     Capital     deficit     Equity  
Balance as of December 31, 2024     349,603,759             -       -       82,744       (78,697 )     4,047  
                                                 
Share-based compensation     20,645,500       -       -       184       -       184  
Issuance of shares and warrants, net     527,987,700       -       (122 )     3,686       -       3,564  
Issuance of shares according to the ATMOA     17,467,200       -       -       160       -       160  
Net loss for the period     -       -       -       -       (3,844 )     (3,844 )
Balance as of June 30, 2025     915,704,159       -       (122 )     86,774       (82,541 )     4,111  

 

(*) No par value

 

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

 

4

 

 

STEAKHOLDER FOODS LTD

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)

U.S. dollars in thousands

 

    Six months ended
June 30,
 
    2026     2025  
Cash flows from operating activities:            
             
Net Loss     (3,293 )     (3,844 )
                 
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation     167       481  
Change in fair value of marketable securities (including related parties)     (3 )     36  
Reduction in the carrying amount of right of use assets     36       2,788  
Change in operating lease liabilities     (36 )     (2,480 )
Change in inventory     (67 )     -  
Share-based compensation     72       184  
Loss on Disposal of Fixed Assets     -       3  
Decrease ( increase) in prepaid expenses and other current assets     (29 )     176  
Foreign exchange gain or losses     16       46  
Non-cash finance expenses     -       160  
decrease in trade payables     (36 )     (4 )
Decrease in other liabilities     (37 )     (97 )
Interest income     -       (7 )
Interest expenses     -       4  
Decrease in accounts payables and accruals     (95 )     (261 )
                 
Net cash used in operating activities     (3,305 )     (2,815 )
                 
Cash flows from investing activities:                
                 
Acquisition of fixed assets     (37 )     (74 )
Decrease in restricted deposits     157       312  
Proceeds from realization of property and equipment     -       22  
Investment in convertible loan     -       (1,740 )
Investment in marketable securities     17       22  
                 
Net cash provided by (used in) investing activities     137       (1,458 )
                 
Cash flows from financing activities:                
                 
Proceeds from issuance of shares and warrants     156       3,677  
Issuance costs     (179 )     (183 )
Proceeds from issuance and exercise of warrants     1,115       -  
Proceeds from convertible loans     -       870  
Net cash provided by financing activities     1,092       4,364  
                 
Effect of exchange rate changes on cash and cash equivalents     45       26  
(Decrease) Increase in cash and cash equivalents     (2,031 )     117  
                 
Cash and cash equivalents, beginning of the year     3,087       1,260  
Cash and cash equivalents end of the period     1,056       1,377  
                 
Supplemental disclosure of cash flow information:                
Right-of-use asset recognized with corresponding lease liability     119       -  
Non-cash Issuance costs     -       5  
Receivables on account of shares     -       122  

 

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

 

5

 

 

STEAKHOLDER FOODS LTD

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

 

NOTE 1 – GENERAL

 

a. Steakholder Foods Ltd. (formerly Ophectra Real Estate and Investments Ltd., Meat-Tech 3D Ltd. and MeaTech 3D Ltd.) (the “Company”) was incorporated in Israel on July 22, 1992 as a private company limited by shares in accordance with the Companies Ordinance, 1983, and later a publicly-traded company whose ordinary shares were listed for trade on the Tel Aviv Stock Exchange (TASE). In March 2021, the Company completed an initial public offering on the Nasdaq Capital Market (Nasdaq), listing American Depositary Shares (ADSs), each currently representing twelve thousand (12,000) ordinary shares of no par value (for details of a ratio change in 2026 and its effect on the presentation of amounts and purchase/exercise prices of ADSs, see Note 3A below), for trade, and later voluntarily de-listed its ordinary shares from the TASE. The Company’s official address is 22 Einstein St., Ness Ziona, Israel.

 

b. Since its inception, the Company has incurred significant losses and negative cash flows from operations and as of June 30, 2026, has an accumulated deficit of USD 93,237 thousand. The Company has financed its operations mainly through fundraising from various investors. The Company’s management expects that the Company may continue to generate losses and negative cash flows from operations for the foreseeable future. In considering the Company’s expected cash usage, the Company’s cash balance as of June 30, 2026, and as of the date of approval of the financial statements is not sufficient to continue the Company’s operations for at least 12 months, which raises substantial doubt about the Company’s ability to continue as a going concern.

 

In order to continue the Company’s operations, including research and development and sales and marketing, the Company is considering financing from various sources, including capital inflows from strategic partnerships or additional investment funding (See also Note 3 and Note 12). There is no assurance that the Company will be successful in obtaining the level of financing necessary to finance its operations. If the Company is unsuccessful in securing sufficient financing, it may need to cease operations. The condensed consolidated interim financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

c. In October 2023, Israel was attacked by a terrorist organization and entered a state of war. On February 28, 2026, a military operation designated as “Operation Roaring Lion” began, involving coordinated strikes by Israeli and United States forces against targets in Iran. In response, attacks were launched toward Israel and other countries in the region, including rocket fire directed at Israeli civilian areas. Hezbollah in Lebanon also joined the conflict and launched rockets toward Israel, and the Israel Defense Forces carried out strikes against Hezbollah targets in Lebanon. These developments affected economic activity in Israel, including the declaration of a state of emergency, disruptions to business operations and large-scale reserve mobilizations. Subsequently, a ceasefire was announced between the parties; however, the situation remains uncertain, and there can be no assurance that the ceasefire will be sustained. During the six months ended June 30, 2026, the impact of this war on the Company’s results of operations and financial condition was immaterial, however such impact may increase, and even become material, as a result of the continuation, escalation or expansion of such war. As of the date of the financial statements, the Company cannot reasonably estimate the potential impact of these events (which may include difficulties in raising funds and establishing new collaborations with foreign companies) on its business, financial position, or results of operations, and management continues to monitor developments.

 

6

 

 

STEAKHOLDER FOODS LTD

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

A. Basis of preparation:

 

The condensed consolidated financial interim statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and do not include all of the information required for full annual financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2025 annual audited consolidated financial statements and footnotes, which were filed with the U.S. Securities and Exchange Commission (the “SEC”) as part of the Company’s Annual Report on Form 20-F for the year ended December 31, 2025.

 

The results of operations for the six months ended June 30, 2026 shown in these financial statements are not necessarily indicative of the results to be expected for the full year ending December 31, 2026.

 

B. Use of Estimates

 

The preparation of condensed consolidated interim financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the condensed consolidated interim financial statements and accompanying notes. The accounting and measurement estimates that require management’s subjective judgments include, but are not limited to, those related to share-based compensation, inventory write-down, and the fair value measurement of financial instrument at each reporting period. The Company evaluates its estimates and judgments on an ongoing basis and revises them when necessary. Actual results may differ from the original or revised estimates.

 

  C. Inventory

 

The Company’s inventory consists of raw materials and finished goods.

 

Inventories are stated at the lower of cost or net realizable value, cost is determined using the first-in, first-out (FIFO) method and includes purchase costs and, where applicable, production costs incurred in bringing the inventory to its present location and condition.

 

Net realizable value represents the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and delivery costs.

 

  D. Concentrations of credit risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted deposits and marketable securities.

 

For cash and cash equivalents and restricted deposits, the Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the consolidated balance sheets exceed government-insured limits. The Company maintains its cash and cash equivalents and restricted deposits with financial institutions that management believes is of high credit quality and has not experienced any losses on these accounts.

 

E. Significant accounting policies

 

The accounting policies applied in these interim financial statements are the same as those applied in the Company’s annual audited consolidated financial statement for the year ended December 31, 2025 except as detailed above.

 

7

 

 

STEAKHOLDER FOODS LTD

 

NOTE 3 – SHAREHOLDERS’ EQUITY

 

A. On July 27, 2026, the Company effected an adjustment to the ratio of ordinary shares to ADSs at a ratio of 3:1, such that after the ratio adjustment was affected, every 3 ADSs were consolidated into 1 ADS and each ADS now represents twelve thousand (12,000) ordinary shares, instead of four thousand (4,000) ordinary shares prior to the ratio adjustment. All share and per share amounts, and exercise prices of stock options, warrants, and pre-funded warrants, if applicable, in the condensed consolidated interim financial statements and notes thereto have been adjusted for all periods presented to give effect to this adjustment to the ratio of ordinary shares to ADSs.

 

B. From January 1, 2026 through June 30, 2026, the Company sold 7,372 ADSs under its At-the-Market offering, generating gross proceed of approximately $0.054 million and net proceed of approximately $0.052.

 

C. On June 1, 2026, the Company entered into inducement offer letters with certain holders of existing warrants to exercise their warrants. The total immediate gross proceeds were approximately $1.1 million, and net proceeds were approximately $0.94 million. Pursuant to these agreements, the holders exercised 297,618 ADS warrants at a reduced exercise price of $3.75 per ADS. As consideration, the Company issued new warrants to purchase up to an aggregate of 595,236 ADSs at an exercise price of $3.75 per ADS, including Series C warrants exercisable through June 22, 2031 and Series D warrants exercisable through December 22, 2027, classified as equity. Underwriting discounts and other offering expenses totaled approximately $177 thousand. Due to beneficial ownership limitation provisions in the inducement letter, only 56,000 exercised warrants were immediately exercised into ADSs, while the remaining 241,618 ADSs were placed in abeyance for the benefit of the Holder until receipt of notice from the latter that the ADSs may be issued in compliance with such limitation. As of the balance sheet date, 57,809 shares in abeyance were called by the holder.

 

In accordance with ASU 2021-04, the modification of the equity-classified warrants was accounted for as issuance costs of the equity instruments issued.

 

As part of the warrant exercise and new warrant allocation, the Company issued Underwriter Warrants, classified as equity, to purchase 20,833 ADSs. The Underwriter Warrants are exercisable from time to time, in whole or in part, through June 22, 2031, with an exercise price of $4.69 per ADS and remain outstanding as of the balance sheet day.

 

D. During the six months ended June 30, 2026, the Company issued 26,731 ADSs under its Any Market Purchase Agreement for proceeds of approximately USD 0.1 million.

 

The table below summarizes the Company’s underlying equity securities other than those stemming from share-based payment in ADS terms, as of June 30, 2026, and reflecting the ratio change described in Note 3A above:

 

    Warrants outstanding
as of June 30, 2026
    Exercise price in
USD
    Expiration
date
Pre-funded warrants     48,452     $ 0.03     Oct. 2035
Shares in abeyance (*)     183,809       -     -
Ordinary warrants     664,354       $4.69 - $1,200     Dec. 2027 – Jun. 2031
Total outstanding     896,615              

 

(*) See above note 3C

 

8

 

 

STEAKHOLDER FOODS LTD

 

NOTE 4 – EVENTS DURING THE PERIOD

 

A. In January 2026, following the insolvency of Twine Solutions Ltd. (“Twine”), a former wholly-owned subsidiary of the Company, as of December 2025 Twine filed a request with the Central District Court of the State of Israel to receive an order to commence proceedings pursuant to the Israeli Insolvency and Financial Rehabilitation Law, 2018. The motion was granted, and the Court issued an order commencing insolvency proceedings on February 10, 2026.

 

B. In January 2026, the Company entered into an amendment to the royalties and materials supply agreement with Wyler Farm dated May 12, 2024. Under the terms of the amendment, the Company agreed to purchase from Wyler Farm the raw materials previously acquired by Wyler for consideration of USD 34 thousand (NIS 108 thousand). In addition, the parties agreed that the Company will collect the equipment owned by the Company from Wyler Farm. The equipment and materials were received by the Company, but they were found to be unfit for use and, accordingly, were written off, resulting in a loss of approximately USD 77 thousand.

 

C. In January 2026, the Company entered into a lease agreement for office premises located in Ness Ziona, Israel. The lease term is approximately eighteen months and commenced during January 2026. The Company assessed the agreement under ASC 842 and determined it to be an operating lease. Accordingly, the Company recognized a right-of-use asset and a corresponding lease liability of approximately USD 119 thousand, based on the present value of the future lease payments as of the commencement date. Lease expense is recognized over the lease term in accordance with the provisions of ASC 842.

 

NOTE 5 – INVENTORY

 

    June 30,     December 31,  
    2026     2025  
Raw materials     59       -  
Finished goods     8       -  
      67       -  

 

The Company recorded an inventory write-off of $264 thousand during the six months period ended June 30, 2026, which is presented as cost of goods sold in the statement of operations.

 

NOTE 6 – ACCOUNT PAYABLES AND ACCRUALS

 

    June 30,     December 31,  
    2026     2025  
Accrued expenses     396       398  
Employee benefits     307       358  
Other     34       22  
      737       778  

 

9

 

 

STEAKHOLDER FOODS LTD

 

NOTE 7 – FAIR VALUE MEASUREMENT

 

The Company applies ASC Topic 820, Fair Value Measurement (“ASC 820”), that defines fair value and establishes a framework for measuring and disclosing fair value. The Company measures certain financial assets and liabilities at fair value based on applicable accounting guidance using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value.

 

Level 1 - Quoted prices in active markets for identical assets or liabilities.

 

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values:

 

    Six months ended June 30, 2026  
    Fair value measurements using input type  
    Fair Value     Level 1     Level 2     Level 3  
Financial Assets:                                
Marketable securities   $    *     $    *     $ -     $ -  

 

* less than $1 thousand

 

    Year ended December 31, 2025  
    Fair value measurements using input type  
    Fair Value     Level 1     Level 2     Level 3  
Financial Assets:                                
Marketable securities   $ 14     $ 14     $ -     $ -  

 

The Company re-measured the asset using a Level 1 fair value measurement, as its prices are quoted in an active market.

 

ATMOA

 

The Company’s At-the-Market Offering Agreement (ATMOA), as described in Note 3B, is, in substance, a purchased call option over the Company’s own shares. Accordingly, the ATMOA has no substantial fair value until shares are sold under the agreement. Upon the sale of shares under the ATMOA, the difference between the cash proceeds received (net of transaction costs) and the closing price of the Company’s ordinary shares on the date of issuance is recognized as financing income or expense. As of June 30, 2026, the fair value of the ATMOA is zero.

 

Fair value gain and losses arising from the ATMOA are measured with reference to the spot price of the Company’s shares sold, less consideration receivable from the ATMOA Investor.

 

10

 

 

STEAKHOLDER FOODS LTD

 

NOTE 8 – SEGMENT REPORTING

 

The Company operates and manages its business as one reportable and operating segment - development and sales of alternative proteins and 3D printing production machines. The Company’s chief operating decision maker is the Chief Executive Officer. The Company’s chief operating decision maker uses consolidated operating loss and net loss to measure segment profit or loss, allocate resources, and assess performance.

 

To make operating decisions, the CODM examines, within each operational function, the payroll and employee benefits. The accounting policies of the development and sales of 3D printing production machines and plant-based products segment are the same as those described in the summary of significant accounting policies. The CODM does not examine the segment’s assets.

 

The following table presents the operations for the reportable segment during the six months ended June 30, 2026 and 2025 (in thousands): 

 

    Six months ended
June 30,
 
    2026     2025  
Research and development - Payroll and Employee benefits     349       779  
Marketing - Payroll and Employee benefits     220       262  
General and administrative - Payroll and Employee benefits     334       392  
Depreciation and amortization expenses     167       481  
Share-based compensation expenses     72       184  
Inventory write-down     264       -  
Other operating expenses (*)     1,918       1,347  
Total operating loss     3,324       3,445  
                 
Loss (gain) from marketable securities     (3 )     36  
Interest income             (13 )
Other financial expenses (income), net     (35 )     170  
Other expenses     7       206  
Loss for the year     3,293       3,844  

 

(*) Other operating expenses include materials, directors and officers insurance, public relations and advertising, consulting and professional services, corporate costs and facility costs.

 

NOTE 9 – SHARE-BASED COMPENSATION

 

The Company has adopted a share-based compensation plan, the 2022 Share Incentive Plan (the Plan), from which share-based compensation awards can be granted to employees, directors and consultants. As of June 30, 2026, there were 18,021 ADSs authorized for issuance and not yet issued under the Plan.

 

The Company has issued stock option, restricted share unit (RSU) and restricted share (RS) awards to management, other employees, consultants, and directors. These awards usually vest ratably over a three-year period and the option awards usually expire after a term of four years from the date of grant. During the first six months of 2026, the Company allocated stock options vesting into 3,333 ADSs to a consultant, and RSs vesting into 45,000 ADSs to an officer and employees.

 

RSUs represent the right to receive ADSs upon vesting and do not convey shareholder rights until settlement. RS awards represent issued shares that are subject to forfeiture until vested and generally convey shareholder rights, including voting and dividend rights, from the date of grant, subject to the terms of the applicable award agreements.

 

11

 

 

STEAKHOLDER FOODS LTD

 

NOTE 9 – SHARE-BASED COMPENSATION (CONT.)

 

The fair value of the Company’s stock options granted to a consultant for the six months ended June 30, 2026 was estimated using the following assumptions:

 

    2026
Expected volatility   105.25%
Risk free interest rate   3.91%
Expected dividend   -
Expected term (in years)   4

 

The expected volatility was determined on the basis of a weighted-average share price volatility of the Company, for a period equal to the share options expected terms. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. Share price was determined according to quoted share prices on Nasdaq.

 

Transactions related to employees, directors, and consultants options granted under the Company’s options plan during the six months ended June 30, 2026 were as follows:

 

   

Number of

options

   

Weighted

average

exercise

price

(USD)

   

Weighted

average

remaining

contractual

term

(in years)

   

Aggregate

Intrinsic

Value

(USD)

 
Outstanding at January 1, 2026     7,543,770       0.57       5.1       0.023  
Granted     40,000,000       0.0000025       3.75       0.0001  
Expired     (448,000 )     0.48       -       -  
Outstanding at June 30, 2026     47,095,770       0.09       3.92       0.004  
Vested and expected to vest at end of period     47,095,770       0.09       3.92       -  
Exercisable at June 30, 2026     13,792,437       0.3       4.35          

 

Transactions related to restricted share units (RSUs) during the six months ended June 30, 2026, were as follows:

 

   

Number of

RSU

   

Weighted

average

grant date
fair value

(USD)

 
Outstanding at January 1, 2026     124,128,000       0.002  
Granted     -       -  
Vested     (40,744,000 )     0.003  
Forfeited     (51,192,000 )     0.001  
Outstanding at June 30, 2026     32,192,000       0.01  

 

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STEAKHOLDER FOODS LTD

 

NOTE 9 – SHARE-BASED COMPENSATION (CONT.)

 

Transactions related to restricted stocks (RSs) during the six months ended June 30, 2026, were as follows:

 

    Number of
RS
   

Weighted

average

grant date
fair value

(USD)

 
Outstanding at January 1, 2026     -       -  
Granted     540,000,000       0.0004  
Vested     (90,000,000 )     0.0004  
Forfeited     -       -  
Outstanding at June 30, 2026     450,000,000       0.0004  

 

The total equity-based compensation expense related to all of the Company’s equity-based awards recognized for the six months ended June 30, 2026 and 2025 amounted to approximately USD 72 thousand and USD 184 thousand, respectively.

 

NOTE 10 - BASIC AND DILUTED NET LOSS PER ORDINARY SHARE

 

A reconciliation of net loss available to ordinary shareholders and the number of shares in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share amounts):

 

   

Six months ended

June 30,

 
    2026    

2025

 
             
Net loss attributable to ordinary shareholders     3,293       3,844  
                 
Weighted-average shares used in computing net loss per share, basic and diluted     6,780,167,748       544,608,702  
                 
Net loss per share, basic and diluted     0.0005       0.0071  

 

In computing diluted loss per share for the six months ended June 30, 2026 and 2025, no account was taken of the potential dilution that could occur upon the exercise of warrants, or securities granted under employee share incentive plans, amounting to 708,192 and 35,448 ADSs outstanding, respectively, since they have an anti-dilutive effect on net loss per share.

 

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STEAKHOLDER FOODS LTD

 

NOTE 11 – RELATED PARTY BALANCES AND TRANSACTIONS

 

The directors of the Company are entitled to a service fee and share-based compensation (and in the case of the Chairman of the Board, domestic travel expenses and an annual performance-based bonus). In the six months ended June 30, 2026 and 2025, the Company incurred net expenses of USD 261 thousand and USD 358 thousand, respectively, for directors fees and share-based compensation in the condensed consolidated interim financial statement of comprehensive loss.

 

In March 2026, the Company entered into an agreement to sublet of office and meeting room space from Kaiser Kaufman law firm in Ramat Gan, Israel at an annual rate of approximately USD 33 thousand. The Company requires this space in order to meet its expanding office space needs, and due to the property’s central location.

 

NOTE 12 – SUBSEQUENT EVENTS

 

A. On July 27, 2026, the Company effected an adjustment to the ratio of ordinary shares to ADSs. For more details regarding the adjustment to the ratio of ordinary shares to ADSs and the related retrospective adjustment of share and per share amounts, see Note 3A.

 

B. In July 2026, the Company issued 132,072 ADSs under its Any Market Purchase Agreement for proceeds of approximately USD 0.4 million.

 

C. Subsequent to the balance sheet date, warrant holders exercised investor warrants in an aggregate amount of approximately $0.8 million, before deduction of placement agent fees.

 

D. On July 31, 2026, the Company entered into a securities purchase agreement with an accredited investor in a private placement financing. Under the agreement, the Company agreed to issue pre-funded warrants to purchase up to 1,750,000 ADSs, Series E warrants to purchase up to 1,750,000 ADSs and Series F warrants to purchase up to 1,750,000 ADSs, at a combined purchase price of $1.99 per pre-funded warrant and accompanying warrants.

 

The offering closed on August 3, 2026. Gross proceeds were approximately $3.5 million, before deduction of placement agent fees and other offering expenses in the amount of approximately $0.4 million, for net proceeds of approximately $3.1 million. The Company intends to use the net proceeds for research and development, business growth, working capital and general corporate purposes.

 

The pre-funded warrants are immediately exercisable at an exercise price of $0.01 per ADS. The Series E and Series F warrants have an exercise price of $2.00 per ADS and become exercisable upon approval by a general meeting of shareholders of an increase in the Company’s authorized share capital.

 

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