Company: ENTXW
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001178913-25-001674
Chunk: 93

Company: Entera Bio Ltd.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part II, Item 8
Chunk 93
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 whom 18 are full-time employees, and all are based in Israel. In addition, we employ a number of specialized clinical, non-clinical, statistical, regulatory and development advisors based in the United States, the United Kingdom and Europe. Our operations are located in Jerusalem, Israel.
                   
                  Revenue
                   
                  To date, we have not generated any revenue from sales of our products, and we do not expect to receive any revenue from our product candidates unless and until we obtain regulatory approval and successfully commercialize our products.
                   
                  In April 2024, the Company entered into a material transfer and research project agreement (the “research services agreement”) with a third party. According to the agreement, the third party will pay the Company a monthly payment for the research services, as well as reimbursement for external expenses based on an agreed budget. For the three months ended March 31, 2025, the Company recognized total revenues of $42 thousand from this agreement.
                   
                  The Company recognize revenues according to ASC 606, “Revenues from Contracts with Customers”.
                   
                  The Company concluded that, because the research services provided under the research services agreement have no alternative use (because, in nature, these services are unique to each customer), and the Company has the right to receive payment for performance completed to date, the Company recognizes revenue over the contract term using the input model method, which is labor hours expended and time lapsed.
                  
                    19

                  Research and Development Expenses
                   
                  Research and development expenses consist of costs incurred for the development of our N-Tab™ platform technology and our product candidates, including:

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                          employee-related expenses, including salaries, bonuses and share-based compensation expenses for employees and service providers in the research and development function;

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                          expenses incurred in operating our laboratories including our small-scale manufacturing facility;

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                            expenses incurred under agreements with contract research organizations and investigative sites that conduct our clinical trials;

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                          expenses related to outsourced and contracted services, such as external laboratories, consulting and advisory services;

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                          supply, development and manufacturing costs relating to clinical trial materials; and

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                          other costs associated with pre-clinical and clinical activities.

                  Research and development activities are the primary focus of our business. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical