BiomX Inc.

BiomX Inc. Annual Report Summary: A Pivotal Year (Year Ended December 31, 2025)

BiomX Inc. (NYSE American: PHGE) faced a pivotal and challenging year in 2025. This summary distills key insights from the company's latest annual report, offering investors a concise overview of its performance and strategic position.

Company Overview: Pioneering Phage Technology

BiomX Inc. is a clinical-stage biotechnology company focused on developing novel therapies using "phage technology." Phages are naturally occurring viruses that specifically target and kill bacteria, offering a precision approach to treating diseases. While this technology holds significant promise, it remains nascent, with no phage-based drugs currently approved for therapeutic use in the U.S. or Europe. This positions BiomX as a high-risk, high-reward investment.

BiomX's primary drug candidates include:

• BX004: Targets chronic pulmonary infections in cystic fibrosis (CF) patients. This candidate is in Phase 1b/2a clinical trials.
• BX005: Focuses on inflammatory bowel disease (IBD). This program is in preclinical development.

2025 Performance & Key Developments: A Challenging Year

The year 2025 presented significant operational and financial challenges for BiomX:

• Subsidiary Insolvency and Asset Loss: BiomX Ltd., the company's Israeli subsidiary, experienced severe financial distress, filing for insolvency in December 2025. In January 2026, the court appointed a trustee to manage its liquidation. This event caused BiomX Inc. to lose control over the subsidiary's operations and assets, including intellectual property and research programs. BiomX Inc. now expects to record a non-cash impairment charge of approximately $5 million as a result.
• Reverse Stock Split: To address its low stock price and maintain compliance with NYSE American listing requirements (typically a minimum bid price of $1.00), BiomX executed a 1-for-19 reverse stock split in November 2025. While this increased the per-share price from approximately $0.20 to $3.80, it did not alter the company's overall market capitalization or the fundamental value of shareholder investments.
• Critical New Financing with Potential Change of Control: In late December 2025, BiomX secured crucial $3.0 million in new funding from Pyu Pyu Capital, LLC. This financing involved issuing convertible preferred stock and warrants. A key condition: if shareholders approve, Pyu Pyu Capital could convert its preferred stock and exercise its warrants, potentially acquiring up to 80% of BiomX's common stock. This would grant Pyu Pyu Capital significant, if not controlling, influence over the company's strategic direction, management, and future operations. Shareholder approval for this transaction is paramount for BiomX to continue its operations.

Financial Performance

• No Commercial Revenue: As a clinical-stage biotech, BiomX has not generated any revenue from product sales to date and relies entirely on external funding for its operations.
• Significant Net Losses: For the year ended December 31, 2025, BiomX reported a net loss of approximately $42 million, primarily driven by research and development expenses.

Financial Health Check: A "Going Concern" Warning

BiomX is classified as a "smaller reporting company" by the SEC, reflecting its relatively small market capitalization, which stood at approximately $11.9 million as of June 2025 (pre-reverse split adjustment). As of February 16, 2026, the company had approximately 1.6 million shares of common stock outstanding.

• Cash and Liquidity: The company's cash and cash equivalents stood at approximately $10 million at year-end 2025 (before the Pyu Pyu Capital funding). This cash position, combined with an average quarterly cash burn rate of approximately $8-10 million, indicates a very limited cash runway.
• "Going Concern" Warning: Independent auditors issued a "going concern" warning in the company's financial statements. This indicates substantial doubt about BiomX's ability to continue as an operating entity for at least the next 12 months without securing additional significant funding. Without the Pyu Pyu Capital financing, the company's existing cash would have been insufficient to fund operations beyond the first quarter of 2026.
• Future Capital Needs and Dilution: BiomX will require substantial additional capital to fund its ongoing clinical trials and operations. Future fundraising efforts, likely through equity offerings, could lead to significant dilution for existing shareholders.

Future Outlook & Strategic Imperatives

BiomX faces a critical juncture, with its immediate future heavily dependent on several key factors:

• Shareholder Vote on Pyu Pyu Capital Deal: The most immediate and critical hurdle is securing shareholder approval for the Pyu Pyu Capital financing. BiomX anticipates holding a special meeting for this vote in Q2 2026. Failure to obtain this approval would severely jeopardize the company's ability to continue operations.
• Strategic Direction Post-Financing: If the Pyu Pyu Capital deal is approved and they assume control, BiomX's strategic priorities, pipeline development, and management team could undergo significant changes. Investors should monitor any announcements regarding a revised corporate strategy.
• Clinical Pipeline Advancement: The long-term success of BiomX hinges on the successful progression of its phage-based drug candidates through clinical trials. Key upcoming milestones include completing the Phase 1b/2a trial for BX004 in CF and initiating further preclinical studies for BX005.

Competitive Position

The biotechnology industry, particularly in novel therapeutic areas like phage technology, is highly competitive. BiomX competes with pharmaceutical and biotechnology companies, academic institutions, and other research organizations. These entities are developing or may develop products for the same indications, such as chronic pulmonary infections in CF and inflammatory bowel disease. Competition is based on factors such as product efficacy, safety, convenience, price, and intellectual property protection.

Key Risk Factors for Investors

Investing in BiomX carries substantial risks, including but not limited to:

• Liquidity and Going Concern: The company's ability to continue as a going concern is highly uncertain, dependent on securing additional financing.
• Change of Control and Strategic Shift: The potential for Pyu Pyu Capital to gain majority control introduces significant uncertainty regarding future business strategy and management.
• Clinical Trial Failure: Phage technology is novel; there is no guarantee that BiomX's product candidates will prove safe, effective, or achieve regulatory approval. Clinical trials are inherently risky and expensive.
• Regulatory Approval Risk: Obtaining regulatory approval for a novel therapeutic class like phage therapy presents unique challenges and uncertainties.
• Dilution: Future capital raises will likely involve issuing new equity, leading to further dilution of existing shareholders' ownership.
• Intellectual Property: The company's success depends on its ability to protect its intellectual property, which can be challenging in the rapidly evolving biotech landscape.
• Market Volatility: BiomX's stock (PHGE) is highly speculative and subject to extreme price volatility, which could result in significant losses for investors.

In conclusion, BiomX Inc. is navigating a precarious financial and operational landscape. While its phage technology holds innovative potential, the company's immediate future is overshadowed by significant financial distress, a critical financing deal with potential control implications, and the inherent risks of clinical-stage drug development.