Company: ENTXW
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001178913-25-001674
Chunk: 16

Company: Entera Bio Ltd.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 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 trials. We expect that our research and development expenses will increase significantly in future periods as we advance our clinical candidates into later stages of clinical development and invest in additional preclinical candidates.
                   
                  Our research and development expenses may vary substantially from period to period based on the timing of our research and development activities, including due to the timing of initiation of clinical trials and the enrollment of patients in clinical trials. For the three months ended March 31, 2025 and 2024, our research and development expenses were $1.1 million and $0.7 million, respectively. Research and development expenses for the three months ended March 31, 2025 and 2024 were primarily for the development of EB613 and EB612 and our collaboration with OPKO related to GLP-2 and OXM. The successful development of our product candidates is highly uncertain. At this time, we cannot reasonably estimate the nature, timing