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Item 2. Management’s Discussion and Analysis

2025-02-11 compared with 2024-11-12 · 453 added, 315 removed, 25 unchanged (97% of the section changed)

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

Forward-Looking

Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform

Act of 1995 and other Federal securities laws, and is subject to the safe-harbor created by such Act and laws.

Management’s Discussion and Analysis

of Financial Condition and Results of Operations.

Forward-Looking Statements

may include statements regarding our goals, beliefs, strategies, objectives, plans, including product and technology developments, future

financial conditions, results or projections or current expectations.

In some cases, you can identify forward-looking statements by terminology

such as “may,” “will,” “should,” “expect,” “intend,” “plan,”

“anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,”

the negative of such terms, or other variations thereon or comparable terminology.

These statements are merely predictions and therefore

inherently subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results, performance

levels of activity, or our achievements, or industry results to be materially different from those contemplated by the forward-looking

Such forward-looking statements appear in Item 2 – “Management’s Discussion and Analysis of Financial Condition

and Results of Operations,” and may appear elsewhere in this Quarterly Report on Form 10-Q and include, but are not limited to,

statements regarding the following:

● the expected development, time-to-market and potential benefits from our products and ventures, based

on our cell-based technology platform in regenerative medicine, immunotherapy, food technology, or food tech, agriculture technology,

or agtech, and our Contract Development and Manufacturing Organization, or CDMO, business, as well as potentially in other industries

and verticals that have a need for our mass scale and cost-effective cell expansion platform;

This Quarterly Report on Form

10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other

Federal securities laws, and is subject to the safe-harbor created by such Act and laws.

Forward-looking statements may include statements

regarding our goals, beliefs, strategies, objectives, plans, including product and technology developments, future financial conditions,

results or projections or current expectations.

In some cases, you can identify forward-looking statements by terminology such as “may,”

“will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,”

“estimate,” “predict,” “potential” or “continue,” the negative of such terms, or other

variations thereon or comparable terminology.

These statements are merely predictions and therefore inherently subject to known and unknown

risks, uncertainties, assumptions, and other factors that may cause actual results, performance levels of activity, or our achievements,

or industry results to be materially different from those contemplated by the forward-looking statements.

Such forward-looking statements

appear in Item 2 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and

may appear elsewhere in this Quarterly Report on Form 10-Q and include, but are not limited to, statements regarding the following:

the expected development, time-to-market and potential benefits from our products and ventures, based on our cell-based technology platform in regenerative medicine, immunotherapy, food technology, or food tech, agriculture technology, or agtech, and our Contract Development and Manufacturing Organization, or CDMO, business, as well as potentially in other industries and verticals that have a need for our mass scale and cost-effective cell expansion platform;

our expectations of market and industry growth;

● the prospects of entering into additional license agreements, joint ventures, partnerships or other forms

of cooperation with other companies, government institutes, research organizations and medical institutions;

the prospects of entering into additional license agreements, joint ventures, partnerships or other forms of cooperation with other companies, government institutes, research organizations and medical institutions;

our ability to attract clients for our CDMO business;

● our pre-clinical and clinical study plans, including timing of initiation, expansion, enrollment, results,

and conclusion of trials;

our pre-clinical and clinical study plans, including timing of initiation, expansion, enrollment, results, and conclusion of trials;

achieving regulatory approvals;

● receipt of future funding from the Israel Innovation Authority, or IIA, the European Union’s Horizon

programs, the National Institutes of Health, or NIH, as well as grants from other independent third parties;

● the capabilities of our placenta expanded, or PLX, cells, including future collaborations to further advance

the development of our PLX- PAD and PLX-R18 cell therapy as a potential novel treatment;

● the expected clinical development of a new allogeneic Placental Mucosal Associated Invariant T, or MAIT,

and the potential benefits it can produce for advanced cell-based therapies for immune disorders and neurodegenerative diseases;

● our expectation to solve medicine’s unmet needs and demonstrate a real-world impact and value from

our pipeline, technology platform and commercial-scale manufacturing capacity;

receipt of future funding from the Israel Innovation Authority, or IIA, the European Union’s Horizon programs, the National Institutes of Health, or NIH, as well as grants from other independent third parties;

the capabilities of our placenta expanded, or PLX, cells, including future collaborations to further advance the development of our PLX- PAD and PLX-R18 cell therapy as a potential novel treatment;

the expected clinical development of a new allogeneic Placental Mucosal Associated Invariant T, or MAIT, and the potential benefits it can produce for advanced cell-based therapies for immune disorders and neurodegenerative diseases;

our expectation to solve medicine’s unmet needs and demonstrate a real-world impact and value from our pipeline, technology platform and commercial-scale manufacturing capacity;

the possible impacts of cybersecurity incidents on our business and operations;

our expectations regarding our short and long-term capital requirements;

● our outlook for the coming months and future periods, including but not limited to our expectations regarding

future revenue and expenses;

our outlook for the coming months and future periods, including but not limited to our expectations regarding future revenue and expenses;

our expectation to receive approval from our shareholders relating to a private placement offering, or the Offering, pursuant to a securities purchase agreement, or the Securities Purchase Agreement, and a binding term sheet, or the Term Sheet, each entered into on January 23, 2025;

information with respect to any other plans and strategies for our business;

● general market, political and economic conditions in the countries in which we operate including those

related to recent unrest in the Middle East and armed conflict between Israel and Hamas, Hezbollah and other terrorist organizations.

business and operations are subject to substantial risks, which increase the uncertainty inherent in the forward-looking statements contained

in this report.

addition, historic results of scientific research and development, or R&D, clinical and preclinical trials do not guarantee that

the conclusions of future R&D or trials would not suggest different conclusions.

Also, historic results referred to in this periodic

report would be interpreted differently in light of additional research, development, clinical and preclinical trials results.

as required by law, we undertake no obligation to release publicly the result of any revision to these forward-looking statements that

may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Further information

on potential factors that could affect our business is described under the heading “Risk Factors” in Part I, Item 1A of our

Annual Report on Form 10-K for the fiscal year ended June 30, 2024, or the 2024 Annual Report, as well as in Part II, Item 1A of this

Quarterly Report.

Readers are also urged to carefully review and consider the various disclosures we have made in that report.

used in this Quarterly Report on Form 10-Q, the terms “we”, “us”, “our”, the “Company”

and “Pluri” mean Pluri Inc.

and our wholly owned subsidiaries, Pluri Biotech Ltd.

and Pluristem GmbH, and our subsidiary

Ever After Foods Ltd., or Ever After Foods, unless otherwise indicated or as otherwise required by the context.

references to common shares, or price per common share, in this Quarterly Report on Form 10-Q, reflect the 1-for-8 reverse stock split

effectuated by us on April 1, 2024.

are a biotechnology company with an advanced cell-based technology platform.

We have developed a unique three-dimensional, or 3D, technology

platform for cell expansion with an industrial scale in-house Good Manufacturing Practice, cell manufacturing facility.

We are utilizing

our technology in the fields of regenerative medicine, immunotherapy, food tech, CDMO, and agtech, and plan to utilize it in industries

and verticals that have a need for our mass scale and cost-effective cell expansion platform via partnerships, joint ventures, licensing

agreements and other types of collaborations.

operations are focused on the research, development and manufacturing of cell-based products and the business development of cell therapeutics

and cell-based technologies, providing potential solutions for various industries.

use our advanced cell-based technology platform in the field of regenerative medicine to develop placenta-based cell therapy product

candidates for the treatment of inflammatory, muscle injuries and hematologic conditions.

Recently, we have also launched a novel immunotherapy

Our PLX cells are adherent stromal cells that are expanded using our 3D platform.

Our PLX cells can be administered to patients

off-the-shelf, without blood or tissue matching or additional manipulation prior to administration.

PLX cells are believed to release

a range of therapeutic proteins in response to the patient’s condition.

the pharmaceutical area, we have focused on several indications utilizing our product candidates, including, but not limited to, muscle

recovery following surgery for hip fracture, incomplete recovery following bone marrow transplantation, critical limb ischemia, or CLI,

Chronic Graft versus Host Disease and a potential treatment for Hematopoietic Acute Radiation Syndrome, or H-ARS.

Some of these studies

have been completed while others are still ongoing.

general market, political and economic conditions in the countries in which we operate including those related to recent unrest in the Middle East and armed conflict between Israel and Hamas, Hezbollah and other terrorist organizations;

our ability to regain compliance with Nasdaq Listing Rule 5550(b)(1), which requires us to maintain a minimum of $2.5 million in stockholders’ equity, or the Stockholders’ Equity Requirement, for continued listing on the Nasdaq Capital Market.

Our business and operations

are subject to substantial risks, which increase the uncertainty inherent in the forward-looking statements contained in this report.

In addition, historic results

of scientific research and development, or R&D, clinical and preclinical trials do not guarantee that the conclusions of future R&D

or trials would not suggest different conclusions.

Also, historic results referred to in this periodic report would be interpreted differently

in light of additional research, development, clinical and preclinical trials results.

Except as required by law, we undertake no obligation

to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances

after the date hereof or to reflect the occurrence of unanticipated events.

Further information on potential factors that could affect

our business is described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal

year ended June 30, 2024, or the 2024 Annual Report, as well as in Part II, Item 1A of this Quarterly Report.

Readers are also urged to

carefully review and consider the various disclosures we have made in that report.

As used in this Quarterly

Report on Form 10-Q, the terms “we”, “us”, “our”, the “Company” and “Pluri”

mean Pluri Inc., our wholly owned subsidiaries, Pluri Biotech Ltd., Pluristem GmbH, and Coffeesai Ltd., and our subsidiary Ever After

Foods Ltd., or Ever After Foods, unless otherwise indicated or as otherwise required by the context.

All references to common shares,

or price per common share, in this Quarterly Report on Form 10-Q, reflect the 1-for-8 reverse stock split effectuated by us on April 1,

We are a biotechnology company

with an advanced cell-based technology platform.

We have developed a unique three-dimensional, or 3D, technology platform for cell expansion

with an industrial scale in-house Good Manufacturing Practice, cell manufacturing facility.

We are utilizing our technology in the fields

of regenerative medicine, immunotherapy, food tech, CDMO, and agtech, and plan to utilize it in industries and verticals that have a need

for our mass scale and cost-effective cell expansion platform via partnerships, joint ventures, licensing agreements and other types of

collaborations.

Our operations are focused

on the research, development and manufacturing of cell-based products and the business development of cell therapeutics and cell-based

technologies, providing potential solutions for various industries.

We use our advanced cell-based

technology platform in the field of regenerative medicine to develop placenta-based cell therapy product candidates for the treatment

of inflammatory, muscle injuries and hematologic conditions.

Recently, we have also launched a novel immunotherapy platform.

cells are adherent stromal cells that are expanded using our 3D platform.

Our PLX cells can be administered to patients off-the-shelf,

without blood or tissue matching or additional manipulation prior to administration.

PLX cells are believed to release a range of therapeutic

proteins in response to the patient’s condition.

In the pharmaceutical area,

we have focused on several indications utilizing our product candidates, including, but not limited to, muscle recovery following surgery

for hip fracture, incomplete recovery following bone marrow transplantation, critical limb ischemia, or CLI, Chronic Graft versus Host

Disease and a potential treatment for Hematopoietic Acute Radiation Syndrome, or H-ARS.

Some of these studies have been completed while

others are still ongoing.

We believe that each of these indications is a severe unmet medical need.

July 2023, we announced that we signed a three-year $4.2 million contract with the U.S.

National Institute of Allergy and Infectious

Diseases, or NIAID, which is part of the NIH.

In July 2023, we announced

that we signed a three-year $4.2 million contract with the U.S.

National Institute of Allergy and Infectious Diseases, or NIAID, which

is part of the NIH.

Under such contract, we will collaborate with the U.S.

Department of Defense’s Armed

Forces Radiobiology Research Institute, or AFRRI, and the Uniformed Services University of Health Sciences, or USUHS, in Maryland, U.S.A.,

to further advance the development of our PLX-R18 cell therapy as a potential novel treatment for H-ARS, a deadly disease that can result

from nuclear disasters and radiation exposure.

Immunotherapy

In May 2024, we launched a novel allogenic immunotherapy platform utilizing MAIT cells specifically designed to address

solid tumors - a critical area in medicine where effective treatments are currently insufficient.

We believe that our MAIT cells, isolated

from the human placenta, offer substantial potential benefits compared to conventional T-cells.

cells are potent effector cells, potentially targeting tumors through multiple mechanisms while expressing high levels of various chemokine

receptors, which facilitate their migration directly to tumor sites.

Furthermore, unlike conventional autologous T-cells typically collected

from peripheral blood, our MAIT cells are designed to be allogenic universal product.

Benefiting with very restricted T-cell receptor,

the MAIT cells minimize their likelihood of inducing Graft versus Host Disease, a significant advantage over other potential allogeneic

We are aiming to design the MAIT cells to potentially show better persistence in the body for a longer duration, enhancing

their therapeutic efficacy.

April 2024, we unveiled a novel method for expansion of immune cells using proprietary technology and announced we were granted a new

patent titled, “System and Methods for Immune Cells Expansion and Activation in Large Scale.” This innovative approach

ensures that the produced immune cells retain their integrity, functionality, and therapeutic efficacy, thus offering a promising solution

to meet the escalating demand for advanced cell-based therapies for immune disorders and neurodegenerative diseases.

January 2024, we launched a new business division offering cell therapy manufacturing services as a CDMO:

offers CDMO services to companies from early preclinical development, through late-stage clinical trials and commercialization, with

a mission to deliver high-quality, essential therapies to patients.

We have signed several agreements with clients and are currently

generating revenues from PluriCDMO™.

are actively involved in several initiatives leveraged by Pluri’s 3D cell expansion in the agtech field, such as:

(a) cell-based

coffee business activity through our PluriAgtech business vertical, which is incorporated into our wholly owned subsidiary, Coffeesai

Ltd., (b) an innovative proof-of-concept, or POC, collaboration with ICL Group Ltd., a leading global specialty minerals company, to

revolutionize bio stimulant delivery and enhance yield sustainably, and (c) a strategic POC agreement with a leading international agriculture

corporation which is intended to boost the global vegetable product supply, streamline supply chains, and combat global climate change,

while ensuring a natural and a more sustainable future for agriculture.

March 2024, we announced an important expansion to our intellectual property portfolio with a new patent approval from the Israel Patent

Office, that is designed to reshape the agricultural technology landscape.

The patent represents a major breakthrough in our proprietary

3D bioreactor technology, enabling efficient cultivation of plant cells across various applications, from sustainable agriculture to

critical healthcare solutions.

2022, we announced the establishment of a joint venture with Tnuva Food Industries – Agricultural Cooperative in Israel Ltd., or

Tnuva, Ever After Foods (previously Plurinuva Ltd.), which is incorporated under the laws of the State of Israel, with the purpose of

developing cultivated meat products of all kinds and types.

Pluri’s innovative technology, Ever After Foods has rapidly advanced its scalable production platform, developing a business-to-business,

or B2B, version of its proprietary technology system, Ever After Foods has demonstrated the natural production of muscle and fat tissues

for various animal cells, ensuring taste, feel, and texture akin to conventional animal-derived meat.

June 2024, we entered into a share purchase agreement by and among Ever After Foods, Tnuva, and certain other international strategic

investors, pursuant to which Ever After Foods issued and sold, ordinary shares in a private placement offering, or the Offering, for

aggregate gross proceeds of $10 million.

As part of the Offering, we invested $1.25 million.

In addition, our wholly owned subsidiary,

Pluri Biotech Ltd., and Ever After Foods executed an Amended and Restated Technology License Agreement, dated June

12, 2024, or the Amended License.

The Amended License amended the parties’ existing license agreement dated as of February 23,

2022, to expand the scope of the license to include fish and seafood.

$10 million funding round is intended to support Ever After Foods’ B2B technology platform, positioning it as a sustainable technology

Following the closing of the Offering, the Subsidiary holds approximately 69% of Ever After Foods.

OF OPERATIONS – THREE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 2023.

for the three-month period ended September 30, 2024 were $326,000, as compared to $54,000 for the three-month period ended September

Revenues for the three-month period ended September 30, 2024 were mainly related to services provided to CDMO clients and revenues

related to a POC, collaboration with a leading international agriculture corporation in the agtech field.

Revenues for the three-month

period ended September 30, 2023 were mainly related to services provided to a CDMO client in the field of process and product development.

The increase in revenues is mainly attributed to the launch of new business verticals, specifically in the CDMO and agtech fields.

Cost of revenues for the three-month

period ended September 30, 2024 was $126,000.

Cost of revenues includes (1) manufacturing costs relates to our CDMO and agtech fields,

which primary consist of materials, personnel-related and overhead costs, and (2) royalties which we are obligated to pay to the European

Investment Bank, or EIB, according to the finance agreement, or the EIB Finance Agreement, executed with the EIB by us, Pluri Biotech

Department of Defense’s Armed Forces Radiobiology Research

Institute, or AFRRI, and the Uniformed Services University of Health Sciences, or USUHS, in Maryland, U.S.A., to further advance the development

of our PLX-R18 cell therapy as a potential novel treatment for H-ARS, a deadly disease that can result from nuclear disasters and radiation

Immunotherapy MAIT cells :

In May 2024, we launched a novel allogenic immunotherapy platform utilizing MAIT cells specifically designed to address solid tumors -

a critical area in medicine where effective treatments are currently insufficient.

We believe that our MAIT cells, isolated from the human

placenta, offer substantial potential benefits compared to conventional T-cells.

MAIT cells are potent effector

cells, potentially targeting tumors through multiple mechanisms while expressing high levels of various chemokine receptors, which facilitate

their migration directly to tumor sites.

Furthermore, unlike conventional autologous T-cells typically collected from peripheral blood,

our MAIT cells are designed to be allogenic universal product.

Benefiting with very restricted T-cell receptor, the MAIT cells minimize

their likelihood of inducing Graft versus Host Disease, a significant advantage over other potential allogeneic products.

We are aiming

to design the MAIT cells to potentially show better persistence in the body for a longer duration, enhancing their therapeutic efficacy.

In April 2024, we unveiled

a novel method for expansion of immune cells using proprietary technology and announced we were granted a new U.S.

patent titled, “System

and Methods for Immune Cells Expansion and Activation in Large Scale.” This innovative approach ensures that the produced immune

cells retain their integrity, functionality, and therapeutic efficacy, thus offering a promising solution to meet the escalating demand

for advanced cell-based therapies for immune disorders and neurodegenerative diseases.

In January 2024, we launched

a new business division offering cell therapy manufacturing services as a CDMO:

PluriCDMO™ offers CDMO services

to companies from early preclinical development, through late-stage clinical trials and commercialization, with a mission to deliver high-quality,

essential therapies to patients.

We have signed several agreements with clients and are currently generating revenues from PluriCDMO™.

We are actively involved in

several initiatives leveraged by Pluri’s 3D cell expansion in the agtech field, such as:

(a) cell-based coffee business activity

through our PluriAgtech business vertical, which is incorporated into our wholly owned subsidiary, Coffeesai Ltd., (b) an innovative proof-of-concept,

or POC, collaboration with ICL Group Ltd., a leading global specialty minerals company, to revolutionize bio stimulant delivery and enhance

yield sustainably, and (c) a strategic POC agreement with a leading international agriculture corporation which is intended to boost the

global vegetable product supply, streamline supply chains, and combat global climate change, while ensuring a natural and a more sustainable

future for agriculture.

In March 2024, we announced

an important expansion to our intellectual property portfolio with a new patent approval from the Israel Patent Office, that is designed

to reshape the agricultural technology landscape.

The patent represents a major breakthrough in our proprietary 3D bioreactor technology,

enabling efficient cultivation of plant cells across various applications, from sustainable agriculture to critical healthcare solutions.

On January 23, 2025, we entered

into a Term Sheet with Mr.

Alejandro Weinstein, a non-U.S.

investor, or the Investor, for the purchase of certain shares representing

approximately 71% (on a fully diluted basis) of Kokomodo Ltd., or Kokomondo, an Israeli agtech company specializing in cultivated cacao

production, for an aggregate purchase price of $4.5 million, payable in our common shares, or the Kokomodo Transaction.

The Kokomodo Transaction

will be subject to, among other conditions, the approval of our shareholders.

The Kokomodo Transaction is subject to certain closing conditions,

including the approval of our shareholders.

As of the date of this report, there is no guarantee when or if the Kokomodo Transaction will

be completed.

In 2022, we announced the

establishment of a joint venture with Tnuva Food Industries – Agricultural Co-Operative in Israel Ltd., or Tnuva, Ever After Foods

(previously Plurinuva Ltd.), which is incorporated under the laws of the State of Israel, with the purpose of developing cultivated meat

products of all kinds and types.

Leveraging Pluri’s innovative

technology, Ever After Foods has rapidly advanced its scalable production platform, developing a business-to-business, or B2B, version

of its proprietary technology system, Ever After Foods has demonstrated the natural production of muscle and fat tissues for various animal

cells, ensuring taste, feel, and texture akin to conventional animal-derived meat.

In June 2024, we entered into

a share purchase agreement by and among Ever After Foods, Tnuva, and certain other international strategic investors, pursuant to which

Ever After Foods issued and sold, ordinary shares in a private placement offering, for aggregate gross proceeds of $10 million.

of such private placement offering, we invested $1.25 million.

In addition, our wholly owned subsidiary, Pluri Biotech Ltd., and Ever

After Foods executed an Amended and Restated Technology License Agreement, dated June 12, 2024, or the Amended License.

The Amended License

amended the parties’ existing license agreement dated as of February 23, 2022, to expand the scope of the license to include fish

The $10 million funding round

is intended to support Ever After Foods’ B2B technology platform, positioning it as a sustainable technology enabler and will allow

it to move to their own facility during March 2025.

Following the closing of such private placement offering, the Subsidiary holds approximately

69% of Ever After Foods.

RESULTS OF OPERATIONS – THREE AND SIX

MONTHS ENDED DECEMBER 31, 2024 COMPARED TO THREE AND SIX MONTHS ENDED DECEMBER 31, 2023

Revenues for the six-month

and three-month periods ended December 31, 2024 were $511,000 and $185,000, respectively, as compared to $159,000 and $105,000, respectively,

during the six-month and three-month periods ended December 31, 2023.

Revenues for the six-month and three-month periods ended December

31, 2024 and 2023 were mainly related to services provided to CDMO clients in the field of process and product development and in the

agtech fields.

The increase in revenues is mainly attributed to the launch of new business verticals, specifically in the CDMO field and

an increase related to a POC collaboration with a leading international agriculture corporation in the agtech field.

Cost of Revenues

Cost of revenues for each

of the six-month and three-month periods ended December 31, 2024 were $200,000 and $74,000.

Cost of revenues includes (1) manufacturing

costs related to our CDMO and agtech fields, which primary consist of materials, personnel-related and overhead costs, and (2) royalties

which we are obligated to pay to the European Investment Bank, or EIB, according to the finance agreement, or the EIB Finance Agreement,

executed with the EIB by us, Pluri Biotech Ltd.

and Pluristem GmbH in April 2020.

We had no cost of revenues for the three-month period ended September 30, 2023.

and Development Expenses, Net

We had no cost of revenues for the six-month and three-month

periods ended December 31, 2023.

Research and Development Expenses, Net

R&D expenses, net (costs

less participation by the IIA, Horizon Europe and the NIAID) for the three-month period ended September 30, 2024 decreased by 3% from

$2,993,000 for the three-month period ended September 30, 2023, to $2,889,000.

The decrease is mainly attributed to (1) a decrease in

salaries and a related to reduction in head count of 9 R&D employees (90 R&D employees on September 30, 2024, compared to 99 R&D

employees on September 30, 2023) as a result of our cost reduction and efficiency plans, and (2) an increase in participation grants from

the NIAID contract, partially offset by (1) an increase in material purchases in accordance with our manufacturing needs and plans, and

(2) an increase related to subcontractors activity in NIAID and immunotherapy projects.

and Administrative Expenses

and administrative expenses for the three-month period ended September 30, 2024 increased by 3% from $2,438,000 for the three-month period

ended September 30, 2023 to $2,509,000 mainly due to:

(1) an increase in salaries and related expenses due to the reinstatement of the

salary of Mr.

less participation by the IIA, Horizon Europe and the NIAID) for the six-month period ended December 31, 2024 decreased by 2% from $5,957,000

for the six-month period ended December 31, 2023, to $5,814,000.

The decrease is mainly attributed to (1) a decrease in salaries and a

related to reduction in head count of 10 R&D employees in the Subsidiary (90 R&D employees on December 31, 2024, compared to 100

R&D employees on December 31, 2023) as a result of our cost reduction and efficiency plans, and (2) a decrease in materials costs

related to a supplier credit, partially offset by (1) an increase in material purchases in accordance with our manufacturing needs and

plans, and (2) an increase related to subcontractors activity in NIAID and immunotherapy projects.

R&D expenses, net (costs

less participation by the IIA, Horizon Europe and the NIAID) for the three-month period ended December 31, 2024 decreased by 1% from $2,964,000

for the three-month period ended December 31, 2023 to $2,925,000.

The decrease is mainly attributed to a decrease in materials costs related

to a supplier credit, partially offset by (1) an increase in material purchases and consultants activity in accordance with our manufacturing

needs and plans, and (2) a decrease in participation grants from the NIAID contract.

General and Administrative Expenses

General and administrative

expenses for the six-month period ended December 31, 2024 decreased by 3% from $4,792,000 for the six-month period ended December 31,

2023 to $4,652,000 mainly due to a decrease in share-based compensation expenses related to employee terminations and restricted stock

unit, or RSU, expenses amortization over time, partially offset by (1) an increase in salaries and related expenses due to the reinstatement

of the salary of Mr.

Yaky Yanay, our Chief Executive Officer, or CEO (following his salary reduction from January 2023 through December

whereby he waived 75% of his salary and converted it to restricted stock units, or RSUs, and options), (2) an increase in bonus expenses

for certain employees, including our CEO and Mrs.

Chen Franco-Yehuda, our former Chief Financial Officer, or CFO, for certain performance-based

bonuses as defined in their employment agreement, (3) an increase in share-based compensation expenses related to RSUs and options which

were granted during the first quarter of fiscal year 2025 to officers and consultants, and (4) an increase in expenses related to corporate

activities, such as investor relations and public relations, partially offset by a decrease in share-based compensation expenses related

to RSU expenses amortization over time.

Financial Income (expenses), net

financial income (expenses), net, decreased from $493,000 in financial income for the three-month period ended September 30, 2023 to

$621,000 in financial expenses for the three-month period ended September 30, 2024.

This decrease is mainly attributed to exchange rate

differences expenses related to the EIB loan following fluctuation between the U.S.

dollar against the Euro and from a decrease related

to interest on deposits, due to a decrease in interest rates, offset by exchange rates income related to the New Israeli Shekel, or NIS,

deposits following the strength of the NIS against the U.S.

expenses related to our outstanding loan received from the EIB and all changes during the three-month period ended September 30, 2024

compared to the three-month period ended September 30, 2023 are attributable solely to exchange rate differences of the Euro compared

Net loss for the three-month

period ended September 30, 2024 was $6,036,000 compared to net loss of $5,098,000 for the three-month period ended September 30, 2023.

The increase is mainly due to the increase in financial expenses, net, as well as for the reasons mentioned above, partially offset by

an increase in income due to the launch of our new businesses, such as the CDMO and agtech fields.

Net loss per share attributed to shareholders

for the three-month period ended September 30, 2024 was $1.08 as compared to $0.96 for the three-month period ended September 30, 2023.

We had net loss attributed to our non-controlling interest in Ever After Foods for the three-month period ended September 30, 2024 of

the three-month periods ended September 30, 2024 and 2023, we had weighted average common shares outstanding of 5,459,236 and 5,166,471,

respectively, which were used in the computations of net loss per share for the three-month period.

increase in weighted average common shares outstanding reflects the issuance of additional shares upon the vesting of RSUs and restricted

shares issued to directors, employees and consultants.

and Capital Resources

As of September 30, 2024,

our total current assets were $27,032,000 and total current liabilities were $4,583,000.

On September 30, 2024, we had a working capital

surplus of $22,449,000, total equity (deficit) of ($63,000), out of which $5,220,000 is attributed to the non-controlling interest in

Ever After Foods, and an accumulated deficit of $426,354,000.

cash and cash equivalents and restricted cash as of September 30, 2024 amounted to $3,563,000, compared to $5,548,000 as of September

30, 2023, and compared to $7,037,000 as of June 30, 2024.

Cash balances changed in the three months ended September 30, 2024 compared

to the three months ended September 30, 2023 for the reasons presented below.

cash used for operating activities was $4,064,000 in the three months ended September 30, 2024, compared to $5,857,000 in the three months

ended September 30, 2023.

Cash used in operating activities in the three months ended September 30, 2024 and 2023 consisted primarily

of payments of fees to our suppliers, subcontractors, professional services providers and consultants, and payments of salaries to our

employees, partially offset by grants from the IIA, the Horizon Europe program, and funds received from the NIAID contract.

activities provided cash of $585,000 in the three months ended September 30, 2024, compared to cash provided of $5,802,000 for the three

months ended September 30, 2023.

The investing activities in the three-month period ended September 30, 2024 and September 30, 2023 consisted

primarily of the proceeds from withdrawal of short-term deposits, net of $793,000 and $5,905,000, respectively.

had no financing activities in the three months ended September 30, 2024 or 2023.

December 14, 2022, our CEO agreed to forgo, starting January 1, 2023, $375,000 of his annual cash salary

for the next twelve months in return for equity grants, issuable under our existing equity compensation plans.

In that regard, we granted

Yanay (i) 41,853 RSUs, vesting ratably each month, and (ii) options to purchase 41,853 common shares, vesting ratably each month,

with a term of 3 years, at an exercise price of $8.96 per share.

2023, whereby he waived 75% of his salary and converted it to RSUs, and options), (2) an increase in salaries and related expenses due

to reinstatement of temporary reduction in employees’ regular working hours for a limited period in December 2023, (3) an increase

in bonus expenses for certain employees, including our CEO and Mrs.

Chen Franco-Yehuda, our former Chief Financial Officer, or CFO, for

certain performance-based bonuses as defined in their employment agreement, and (4) an increase in share-based compensation expenses related

to RSUs and options which were granted during the third quarter of fiscal year 2024 and the first quarter of fiscal year 2025 to employees,

officers, directors and consultants.

General and administrative

expenses for the three-month period ended December 31, 2024 decreased by 9% from $2,354,000 for the three-month period ended December

31, 2023 to $2,143,000.

The decrease is mainly attributed to a decrease in share-based compensation expenses related to employee terminations

and RSUs, expenses amortization over time, partially offset by (1) an increase in salaries and related expenses due to the reinstatement

of the salary of our CEO (following his salary reduction from January 2023 through December 2023, whereby he waived 75% of his salary

and converted it to RSUs, and options), (2) an increase in salaries and related expenses due to reinstatement of temporary reduction in

employees’ regular working hours for a limited period in December 2023, (3) an increase in bonus expenses for certain employees,

including our CEO and our former CFO for certain performance-based bonuses as defined in their employment agreement, and (4) an increase

in share-based compensation expenses related to RSUs and options which were granted during the third quarter of fiscal year 2024 and the

first quarter of fiscal year 2025 to employees, officers, directors and consultants.

Other Financial Income, net

Other financial income, net,

increased from $928,000 in financial income for the six-month period ended December 31, 2023 to $1,437,000 in financial income for the

six-month period ended December 31, 2024.

This increase is mainly attributed to exchange rate differences expenses related to the EIB

loan following fluctuation between the U.S.

dollar against the Euro, partially offset by (1) a decrease in interest income from deposits,

resulting from lower interest rates and reduced deposit levels due to withdrawals, (2) a decrease due to exchange rate expenses on a lease

liability due to the strength of the New Israeli Shekel, or NIS, against the U.S Dollar and (3) less income from hedging transactions.

Other financial income, net,

changed from $435,000 in financial income for the three-month period ended December 31, 2023 to $2,058,000 in financial income for the

three-month period ended December 31, 2024.

The increase is mainly attributed to exchange rate differences expenses related to the EIB

loan following fluctuation between the U.S.

dollar against the Euro, partially offset by (1) a decrease in interest income from deposits,

resulting from lower interest rates and reduced deposit levels due to withdrawals and (2) less income from hedging transactions.

Interest Expenses

Interest expenses related

to our outstanding loan received from the EIB and all changes during the six-month and three-month periods ended December 31, 2024 compared

to the six-month and three-month periods ended December 31, 2023 are attributable solely to exchange rate differences of the Euro compared

Net loss for the six-month

and three-month periods ended December 31, 2024 were $9,146,000 and $3,110,000, respectively, as compared to net loss of $10,092,000 and

$4,994,000 for the six-month and three-month periods ended December 31, 2023, respectively.

The decreases were due to decreases in general

and administrative expenses and R&D expenses, as part of the implementation of our business strategy, our efforts to reduce costs

pursuant to an efficiency plan, and due to the launch of our new businesses, such as the CDMO and agtech fields.

Net loss per share attributed

to shareholders for the six-month and three-month periods ended December 31, 2024 were $1.61 and $0.53, respectively, as compared to $1.92

and $0.96 for the six-month and three-month periods ended December 31, 2023, respectively.

We had net loss attributed to our non-controlling

interest in Ever After Foods for the six-month and three-month periods ended December 31, 2024 of $308,000 and $154,000, respectively.

For the six-month and three-month

periods ended December 31, 2024 and 2023, we had weighted average common shares outstanding of 5,505,915, 5,552,931 and 5,178,555, 5,190,853,

respectively, which were used in the computations of net loss per share for the six-month and three-month periods.

The increase in weighted average

common shares outstanding reflects the issuance of additional shares upon the vesting of RSUs and restricted shares issued to directors,

officers, employees and consultants.

Liquidity and Capital Resources

As of December 31, 2024, our

total current assets were $22,370,000 and total current liabilities were $4,440,000.

On December 31, 2024, we had a working capital surplus

of $17,930,000, total equity (deficit) of ($2,917,000), after deduction of $5,111,000 which is attributed to the non-controlling interest

in Ever After Foods, and an accumulated deficit of $(429,310,000).

Our cash and cash equivalents

and restricted cash as of December 31, 2024 amounted to $7,490,000, compared to $5,841,000 as of December 31, 2023 and compared to $7,037,000

as of June 30, 2024.

Cash balances changed in the six months ended December 31, 2024 compared to the six months ended December 31, 2023

for the reasons presented below.

Net cash used for operating

activities was $8,692,000 in the six months ended December 31, 2024, compared to $9,506,000 in the six-months ended December 31, 2023.

Cash used in operating activities in the six months ended December 31, 2024 and 2023 consisted primarily of payments of fees to our suppliers,

subcontractors, professional services providers and consultants, and payments of salaries to our employees, partially offset by income

from CDMO clients and by grants from the IIA, the Horizon Europe program, and funds received from the NIAID contract.

Investing activities provided

cash of $9,230,000 in the six months ended December 31, 2024, compared to cash provided of $9,721,000 for the six months ended December

The investing activities in the six-month period ended December 31, 2024 and 2023 consisted primarily of the proceeds from withdrawal

of short-term deposits, net of $9,550,000 and $9,945,000, respectively.

We had no financing activities

in the six months ended December 31, 2024 or 2023.

On December 14, 2022, our

CEO agreed to forgo, starting January 1, 2023, $375,000 of his annual cash salary for the next twelve months in return for equity grants,

issuable under our existing equity compensation plans.

In that regard, we granted Mr.

Yanay (i) 41,853 RSUs, vesting ratably each month,

and (ii) options to purchase 41,853 common shares, vesting ratably each month, with a term of 3 years from vesting date, at an exercise

price of $8.96 per share.

In addition, the Board of Directors also agreed to grant Mr.

Yanay options

to purchase 187,500 common shares, with a term of 3 years, with the following terms:

(i) options to purchase 62,500 common shares at

an exercise price of $12.48 per share, 50% vesting on June 30, 2023 and 50% vesting on December 31, 2023, (ii) options to purchase 62,500

common shares at an exercise price of $16.64 per share, 50% vesting on June 30, 2023 and 50% vesting on December 31, 2023, and (iii)

options to purchase 62,500 common shares at an exercise price of $20.8 per share, 50% vesting on June 30, 2023 and 50% vesting on December

All options were granted in January 2023 and will expire three years from the later of the vesting date or the date which the

Company increased its authorized share capital.

April 2020, we and our subsidiaries, Pluri Biotech Ltd.

and Pluristem GmbH, executed the EIB Finance Agreement for non-dilutive funding

of up to €50 million in the aggregate, payable in three tranches.

The proceeds from the EIB Finance Agreement were intended to support

our R&D in the European Union to further advance our regenerative cell therapy platform, and to bring the products in our pipeline

The term of the project was three years commencing on January 1, 2020.

June 2021, we received the first tranche in the amount of €20 million pursuant to the EIB Finance Agreement.

The amount received

is due to be repaid on June 1, 2026, and bears annual interest of 4% to be paid together with the principal of the loan.

As of September

30, 2024, the interest accrued was in the amount of approximately €2.6 million.

In addition to the interest payable, the EIB is

also entitled to royalty payments, pro-rated to the amount disbursed from the EIB loan, on our consolidated revenues beginning in the

fiscal year 2024 up to and including its fiscal year 2030, in an amount equal to up to 2.3% of our consolidated revenues below $350 million,

1.2% of our consolidated revenues between $350 million and $500 million and 0.2% of our consolidated revenues exceeding $500 million.

As the project term ended on December 31, 2022, we do not expect to receive additional funds pursuant to the EIB Finance Agreement.

July 11, 2023, we signed a three-year $4.2 million contract with the NIAID, which is part of the NIH.

Yanay options to purchase 187,500 common shares,

with a term of 3 years from vesting date, with the following terms:

(i) options to purchase 62,500 common shares at an exercise price

of $12.48 per share, 50% vesting on June 30, 2023 and 50% vesting on December 31, 2023, (ii) options to purchase 62,500 common shares

at an exercise price of $16.64 per share, 50% vesting on June 30, 2023 and 50% vesting on December 31, 2023, and (iii) options to purchase

62,500 common shares at an exercise price of $20.8 per share, 50% vesting on June 30, 2023 and 50% vesting on December 31, 2023.

In April 2020, we and our

subsidiaries, Pluri Biotech Ltd.

and Pluristem GmbH, executed the EIB Finance Agreement for non-dilutive funding of up to €50 million

in the aggregate, payable in three tranches.

The proceeds from the EIB Finance Agreement were intended to support our R&D in the European

Union to further advance our regenerative cell therapy platform, and to bring the products in our pipeline to market.

The term of the

project was three years commencing on January 1, 2020.

During June 2021, we received the first tranche in the amount of €20

million pursuant to the EIB Finance Agreement.

The amount received is due to be repaid on June 1, 2026, and bears annual interest of 4%

to be paid together with the principal of the loan.

We are currently in discussions with the EIB regarding a potential restructuring of

the terms of the loan, however, there is no certainty that such restructuring will be achieved.

As of December 31, 2024, the interest

accrued was in the amount of approximately €2.86 million.

In addition to the interest payable, the EIB is also entitled to royalty

payments, pro-rated to the amount disbursed from the EIB loan, on our consolidated revenues beginning in the fiscal year 2024 up to and

including its fiscal year 2030, in an amount equal to up to 2.3% of our consolidated revenues below $350 million, 1.2% of our consolidated

revenues between $350 million and $500 million and 0.2% of our consolidated revenues exceeding $500 million.

As of December 31, 2024,

we had an accrued royalty in the amount of $5,000.

As the project term ended on December 31, 2022, we do not expect to receive additional

funds pursuant to the EIB Finance Agreement.

On July 11, 2023, we

signed a three-year $4.2 million contract with the NIAID, which is part of the NIH.

We will collaborate with the U.S.

Department of Defense’s, or DoD’s, AFRRI and USUHS to further advance the development of our PLX-R18 cell therapy as a potential

novel treatment for H-ARS.

Department of Defense’s,

or DoD’s, AFRRI and USUHS to further advance the development of our PLX-R18 cell therapy as a potential novel treatment for H-ARS.

H-ARS is a deadly disease that can result from nuclear disasters and radiation exposure.

The period of performance

of this contract will be from July 1, 2023 through June 30, 2024, with an optional extension for an additional two-year period.

June 6, 2024, the NIAID exercised its option for year two of the three-year $4.2 million contract.

During the 12 months period from July

1, 2024 through June 30, 2025, the NIAID will provide us with $1.4 million to manufacture the PLX-R18 cell therapy and to conduct both

in vitro and in vivo studies to develop PLX-R18 as a potential novel treatment for hematopoietic complications of the H-ARS.

As of September

30, 2024, we have received from the NIAID approximately $1.6 million and as of September 30, 2024 we expect to receive an additional

amount of approximately $2.2 million for activities conducted by that date.

February 13, 2024, we entered into a sales agreement, or the Sales Agreement, with A.G.P./Alliance Global Partners, or A.G.P., as agent,

pursuant to which we may issue and sell our common shares having an aggregate offering price of up to $10 million, from time to time

through A.G.P.

As of November 12, 2024, we have sold an aggregate of 42,729 common shares pursuant to the Sales Agreement at an average

price of $5.93 per share.

October 28, 2024, we announced that the IIA will fund our collaboration with Bar-Ilan University Research and Development Company Ltd.,

or BIRAD, the commercial arm of the Bar-Ilan University in Israel, to support the continued development of MAIT cells.

This collaboration

is aimed at advancing innovative allogeneic cell therapies targeting solid tumors and multiple indications.

The IIA will fund our collaboration

with BIRAD over the next year with budget approved of approximately $148,000 allocated to us, with an option to fund an additional year.

The goal of this collaboration is to effectively integrate both technologies and advance to preclinical studies.

The program does not

include any obligation to pay royalties.

Innovation Authority (IIA)

to the IIA grant terms, we are required to pay royalties at a rate of 3% on sales of products and services derived from technology developed

using this and other IIA grants until 100% of the dollar-linked grants amount plus interest are repaid.

In the absence of such sales,

no payment is required.

Through September 30, 2024, total grants obtained from the IIA aggregated to approximately $27.7 million and

total royalties paid and accrued amounted to $179 thousand.

June 2020, we announced that we were selected as a member of the CRISPR-IL consortium, a group funded by the IIA.

CRISPR-IL brings together

the leading experts in life science and computer science from academia, medicine, and industry, to develop AI based end-to-end genome-editing

These next-generation, multi-species genome editing products for human, plant, and animal DNA, have applications in the pharmaceutical,

agriculture, and aquaculture industries.

CRISPR-IL is funded by the IIA with a total budget of approximately $10 million of which, an

amount of approximately $480 thousand was a direct grant allocated to us, for the initial period of 18 months.

During October 2021, we

received an approval for an additional grant of approximately $583 thousand from the IIA pursuant to the CRISPR-IL consortium program,

for an additional period of eighteen months.

During January 2023, we received approval for an extension of an additional 2 months to

finish the program until June 30, 2023.

The period of performance of this contract will

be from July 1, 2023 through June 30, 2024, with an optional extension for an additional two-year period.

On June 6, 2024, the NIAID

exercised its option for year two of the three-year $4.2 million contract.

During the 12 months period from July 1, 2024 through June

30, 2025, the NIAID will provide us with $1.4 million to manufacture the PLX-R18 cell therapy and to conduct both in vitro and in vivo

studies to develop PLX-R18 as a potential novel treatment for hematopoietic complications of the H-ARS.

As of December 31, 2024, we have

received from the NIAID approximately $1.9 million and as of December 31, 2024 we expect to receive an additional amount of approximately

$0.1 million for activities conducted by that date.

On February 13, 2024, we entered

into a sales agreement, or the Sales Agreement, with A.G.P./Alliance Global Partners, or A.G.P., as agent, pursuant to which we may issue

and sell our common shares having an aggregate offering price of up to $10 million, from time to time through A.G.P.

As of February 11,

2025, we have sold an aggregate of 42,729 common shares pursuant to the Sales Agreement at an average price of $5.93 per share.

On January 23, 2025, we entered

into the Securities Purchase Agreement with the Investor, relating to the Offering of:

(i) 1,383,948 of our common shares, par value $0.00001

per share, (ii) pre-funded warrants, or the Pre-Funded Warrants, to purchase up to 26,030 common shares, and (iii) warrants, or the Common

Warrants, to purchase up to 84,599 common shares.

The Offering price per share and accompanying warrant is $4.61.

The Pre-Funded Warrants

have an exercise price of $0.0001 per share, are exercisable at any time following the receipt certain approvals from our shareholders,

required by the applicable rules of the Nasdaq Capital Market, and until exercised in full.

The Common Warrants have an exercise price

of $5.568 per share, will not be exercisable until we receive the approval from our shareholders, and will be exercisable for three years

following the date of receipt of such approval.

The Pre-Funded Warrants and Common Warrants contain customary anti-dilution provisions

and are subject to a 19.99% beneficial ownership limitation until approval from our shareholders is obtained.

The Securities Purchase

Agreement contains customary representations and warranties and agreements of the Company and the Investor and customary indemnification

rights and obligations of the parties.

Under the terms of the Securities

Purchase Agreement, we appointed Mr.

Weinstein to our Board, effective upon the closing of the Offering, and agreed to recommend his election

to our shareholders provided that the Investor continues to hold at least 10% of our issued and outstanding common shares.

The gross proceeds from the

Offering were $6.5 million and we intend to use the proceeds from the Offering for working capital and general

corporate purposes.

The Offering closed on February 5, 2025, following the satisfaction of customary closing conditions.

Concurrently with the Offering,

on January 23, 2025, we and the Investor entered into a Term Sheet, for the purchase of certain shares representing approximately 71%

(on a fully diluted basis) of Kokomodo, for an aggregate purchase price of $4.5 million, payable in our common shares.

The Kokomodo Transaction

will be subject to, among other conditions, to the approval of our shareholders.

The Kokomodo Transaction is expected to close during

the second quarter of 2025 (calendar year), following the approval of the Company’s shareholders.

As of the date of this report,

there is no guarantee when or if the Kokomodo Transaction will be completed.

Pursuant to the Term Sheet,

in case that the Kokomodo Transaction does not close, for any reason other than due to Investor’s failure to perform his material

undertakings under the Term Sheet and/or covenants as agreed under the definitive agreement, or due to any diligence finding which the

we are not currently aware of and that are likely to result in liabilities exceeding $0.5 million to us, then we shall:

(a) purchase a

certain portion of Investor’s shares in Kokomodo for a purchase amount of $1 million (based on a $6 million pre-money valuation

of Kokomodo, calculated prior to the investment described in (b)), and (b) invest an additional $0.5 million in Kokomodo under a under

a Simple Agreement for Future Equity, or SAFE, providing a 20% discount of the price per share set in connection with a trigger event

for conversion of the SAFE into equity of Kokomodo and a pre-money valuation cap of $5.5 million in connection with such round.

On February 3, 2025, we entered

into an additional securities purchase agreement, or the Additional Securities Purchase Agreement, with Merchant Adventure Fund L.P.,

an existing investor of the Company, relating to a private placement offering, or the Second Offering, of:

(i) 759,219 of our common shares,

par value $0.00001 per share, and (ii) warrants, to purchase up to 45,553 common shares.

The Second Offering price per share and accompanying

warrant is $4.61.

The Second Offering warrants have an exercise price of $5.568 per share and a term of three years commencing on the

date of issuance.

The gross proceeds to the Company from the Second Offering are expected to be approximately $3.5 million and we intend

to use the proceeds from the Second Offering for working capital and general corporate purposes.

Non-dilutive grants

Israel Innovation Authority (IIA)

According to the IIA grant

terms, we are required to pay royalties at a rate of 3% on sales of products and services derived from technology developed using this

and other IIA grants until 100% of the dollar-linked grants amount plus interest are repaid.

In the absence of such sales, no payment

Through December 31, 2024, total grants obtained from the IIA, which are bearing royalties, aggregated to approximately $27.7

million and total royalties paid and accrued amounted to $179 thousand.

In June 2020, we announced

that we were selected as a member of the CRISPR-IL consortium, a group funded by the IIA.

CRISPR-IL brings together the leading experts

in life science and computer science from academia, medicine, and industry, to develop AI based end-to-end genome-editing solutions.

next-generation, multi-species genome editing products for human, plant, and animal DNA, have applications in the pharmaceutical, agriculture,

and aquaculture industries.

CRISPR-IL is funded by the IIA with a total budget of approximately $10 million of which, an amount of approximately

$480 thousand was a direct grant allocated to us, for the initial period of 18 months.

During October 2021, we received an approval for

an additional grant of approximately $583 thousand from the IIA pursuant to the CRISPR-IL consortium program, for an additional period

of eighteen months.

During January 2023, we received approval for an extension of an additional 2 months to finish the program until June

The CRISPR-IL consortium program does not include any obligation to pay royalties.

September 30, 2024, we received total grants of approximately $1 million in cash from the IIA pursuant to the CRISPR-IL consortium program,

and we do not expect to receive any additional funds.

grants - Horizon 2020 and Horizon Europe

September 6, 2022, we announced that a €7.5 million non-dilutive grant from the European Union’s Horizon program was awarded

to Advanced PeRsOnalized Therapies for Osteoarthritis, or PROTO, an international collaboration led by Charité Berlin Institute

of Health Center for Regenerative Therapies.

The goal of the PROTO project is to utilize our PLX-PAD cells in a Phase I/II study for

the treatment of mild to moderate knee osteoarthritis.

amount of approximately Euro 500,000 (approximately $540,000) will be a direct grant that will be allocated to us.

Through September

30, 2024, we received a payment of approximately $185,000 in cash, which relates to the PROTO program.

clinical study, once approved by the regulatory agencies, will be carried out by Charité, together with us and other members of

the international consortium under the leadership of Professor Tobias Winkler, Principal Investigator, at the Berlin Institute of Health

Center of Regenerative Therapies, Julius Wolff Institute and Center for Musculoskeletal Surgery.

have an effective Form S-3 registration statement (File No.

333-273347), filed under the Securities Act of 1933, as amended, with the

SEC using a “shelf” registration process.

Under this shelf registration process, we may, from time to time, sell our common

shares, preferred stock and warrants to purchase common shares, and of two or more of such securities, in one or more offerings for an

aggregate initial offering price of $200 million (including amounts sold under the Sales Agreement).

currency of our financial portfolio is mainly in U.S.

dollars and we use options contracts and other financial instruments in order to

hedge our exposures to currencies other than the U.S.

Through December 31, 2024,

we received total grants of approximately $1 million in cash from the IIA pursuant to the CRISPR-IL consortium program, and we do not

expect to receive any additional funds.

On October 28, 2024, we announced

that the IIA will fund our collaboration with Bar-Ilan University Research and Development Company Ltd., or BIRAD, the commercial arm

of the Bar-Ilan University in Israel, to support the continued development of MAIT cells.

This collaboration is aimed at advancing innovative

allogeneic cell therapies targeting solid tumors and multiple indications.

The IIA will fund our collaboration with BIRAD for the first

year with a budget approved of approximately $148,000 allocated to us, with an option to fund an additional year.

The goal of this collaboration

is to effectively integrate both technologies and advance to preclinical studies.

The program does not include any obligation to pay royalties.

As of December 31, 2024, we have received approximately $28,000 from the IIA for the project.

EU grants - Horizon 2020 and Horizon Europe

On September 6, 2022, we announced

that a €7.5 million non-dilutive grant from the European Union’s Horizon program was awarded to Advanced Personalized Therapies

for Osteoarthritis, or PROTO, an international collaboration led by Charité Berlin Institute of Health Center for Regenerative

The goal of the PROTO project is to utilize our PLX-PAD cells in a Phase I/II study for the treatment of mild to moderate knee

osteoarthritis.

An amount of approximately

Euro 500,000 (approximately $540,000) will be a direct grant that will be allocated to us.

Through December 31, 2024, we received a payment

of approximately $185,000 in cash, which relates to the PROTO program.

On January 13, 2025, we received an additional amount of approximately

$143,000 in cash, which relates to the PROTO program.

The clinical study, once approved

by the regulatory agencies, will be carried out by Charité, together with us and other members of the international consortium

under the leadership of Professor Tobias Winkler, Principal Investigator, at the Berlin Institute of Health Center of Regenerative Therapies,

Julius Wolff Institute and Center for Musculoskeletal Surgery.

We have an effective Form

S-3 registration statement (File No.

333-273347), filed under the Securities Act with the U.S.

Securities and Exchange Commission, or

the SEC, using a “shelf” registration process.

Under this shelf registration process, we may, from time to time, sell our

common shares, preferred stock and warrants to purchase common shares, and of two or more of such securities, in one or more offerings

for an aggregate initial offering price of $200 million (including amounts sold under the Sales Agreement).

The currency of our financial

portfolio is mainly in U.S.

dollars and we use options contracts and other financial instruments in order to hedge our exposures to currencies

other than the U.S.

For more information, please see Item 7A.

- “Quantitative and Qualitative

Disclosures about Market Risk” in the 2024 Annual Report.

- “Quantitative and Qualitative Disclosures about Market Risk”

in the 2024 Annual Report.

We have accumulated a deficit

6 unchanged sentences

few years, it is unlikely that in the short-term revenues will exceed our costs of operations.

may be required to obtain additional liquidity resources in order to support the commercialization of our products and technology and

maintain our R&D activities.

are continually looking for sources of funding, including collaboration with other companies via licensing agreements, joint ventures

and partnerships, and other non-dilutive sources such as our contract with NIAID and DoD, research grants such as the IIA grants and

the European Union grants, and sales of our common shares.

believe that we have sufficient cash to fund our operations for at least the next twelve months.

We may be required to obtain

additional liquidity resources in order to support the commercialization of our products and technology and maintain our R&D activities.

We are continually looking

for sources of funding, including collaboration with other companies via licensing agreements, joint ventures and partnerships, and other

non-dilutive sources such as our contract with NIAID and DoD, research grants such as the IIA grants and the European Union grants, and

sales of our common shares.

We believe that we have sufficient

cash to fund our operations for at least the next twelve months.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis