true FY 0001100397

 0001100397

 2023-01-01
 2023-12-31

 0001100397

 2023-06-30

 0001100397

 2024-04-08

 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 Washington,
D.C. 20549

 FORM
 10-K/A

 (Amendment
No. 1)

 (Mark
One)

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the fiscal year ended December 31, 2023

 or

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the transition period from ________ to ________

 Commission
File Number 001-36138

 AYALA
PHARMACEUTICALS, INC.

 (Exact
name of registrant as specified in its charter)

 Delaware

 02-0563870

 (State
 or other jurisdiction of

 (I.R.S.
 Employer

 incorporation
 or organization)

 Identification
 No.)

 Deer Park Drive, Suite K-1, Monmouth Junction,
 NJ

 08852

 (Address
 of principal executive offices)

 (Zip
 Code)

 (609) 452-9813

 (Registrant's
telephone number, including area code)

 Securities
registered pursuant to Section 12(b) of the Act: None.

 Securities
registered pursuant to Section 12(g) of the Act.

 Common
Stock, par value $0.001 per share

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 Yes
 No

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

 Yes
 No

by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

 Yes
 No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files).

 Yes
 No

by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller
reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large
 Accelerated Filer

 Accelerated
 Filer

 Non-accelerated
 Filer

 Smaller
 reporting company

 Emerging
 growth company

 If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 Yes
 No

 As
of June 30, 2023, the aggregate market value of the voting common equity held by non-affiliates was approximately $ 3.7 million based
on the closing bid price of the registrant's common stock on the - OTCQX Best Market (for purposes of determining this amount,
only directors, executive officers, and 10% or greater shareholders and their respective affiliates have been deemed affiliates).

 The
registrant had 42,633,400 shares of common stock, par value $0.001 per share, outstanding as of April 8, 2024.

 Documents
Incorporated by Reference

 None
in this Amendment No. 1 on Form 10-K/A.

 Audit
 Firm ID

 Auditor
 Name

 Auditor
 Location

 1281

 Kost
 Forer Gabbay & Kasierer

 Tel-Aviv,
 Israel

 EXPLANATORY
NOTE

 On
April 16, 2024, Ayala Pharmaceuticals, Inc. ("New Ayala," "Advaxis," the "Company," "we,"
"us," "our" and similar references) filed its Annual Report on Form 10-K for the year ended December 31, 2023
(the "Original Filing"), with the Securities and Exchange Commission (the "Commission"). The Company indicated
that it would incorporate Part III of Form 10-K in the Original Filing by reference to the Company's definitive proxy statement
for its 2024 annual meeting of stockholders. Because the Company does not anticipate filing its definitive proxy statement by April 29,
2024, the Company is filing this Amendment No. 1 (this "Amendment") on Form 10-K/A, which amends and restates items identified
below with respect to the Original Filing and provides the disclosure required by Part III of Form 10-K.

 This
Form 10-K/A only amends information in Part III, Item 10 (Directors, Executive Officers and Corporate Governance), Item 11 (Executive
Compensation), Item 12 (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters), Item 13 (Certain
Relationships and Related Transactions, and Director Independence), Item 14 (Principal Accounting Fees and Services) and Part IV, Item
15 (Exhibits, Financial Statement Schedules). All other items as presented in the Original Filing are unchanged. Except for the foregoing
amended and restated information, this Amendment does not amend, update or change any other information presented in the Original Filing.

 In
addition, as required by Rule 12b-15 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), this Form 10-K/A
contains new certifications by our principal executive officer and our principal financial and accounting officer, filed as exhibits
hereto.

 Table
of Contents

 Page

 Item
 10.

 Directors, Executive Officers, and Corporate Governance

 Item
 11.

 Executive Compensation

 Item
 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item
 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item
 14.

 Principal Accounting Fees and Services

 Item
 15.

 Exhibits and Financial Statement Schedules

 PART
III

 ITEM
10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 Information
about our Directors

 Name

 Age

 Position

 Dr.
 David Sidransky

 Chairman
 of our Board of Directors

 Dr.
 Vered Bisker-Leib

 Vice
 Chairman of our Board of Directors

 Roni
 A. Appel

 Kenneth
 Berlin

 President
 and Chief Executive Officer, Director

 Yuval
 Cabilly, Ph. D.

 Murray
 Goldberg

 Bridget
 Martell, M.D.

 Pini
 Orbach, Ph. D.

 Dr.
 Robert Spiegel

 Dr.
David Sidransky. Dr. Sidransky currently serves as the Chairman of our Board of Directors and has served as a member of our Board
of Directors since July 2013. He is a renowned oncologist and research scientist named and profiled by TIME magazine in 2001 as one of
the top physicians and scientists in America, recognized for his work with early detection of cancer. Since 1994, Dr. Sidransky has been
the Director of the Head and Neck Cancer Research Division and Professor of Oncology, Otolaryngology, Genetics, and Pathology at Johns
Hopkins University School of Medicine. He has served as Chairman or Lead of the Board of Directors of Champions Oncology since October
2007 and was a director and Vice-Chairman of ImClone Systems until its merger with Eli Lilly Inc. He is the Chairman of Tamir Biotechnology
and Ayala and serves on the Board of Directors of Galmed and Orgenesis. He has served on scientific advisory boards of MedImmune, Roche,
Amgen, and Veridex, LLC (a Johnson & Johnson diagnostic company), among others. Dr. Sidransky served as Director (2005-2008) of the
American Association for Cancer Research (AACR). He earned his B.S. from Brandeis University and his Medical Doctorate from Baylor College
of Medicine. Dr. Sidransky's experience in life science companies, as well as his scientific knowledge, qualify him to service
as our director and non-executive chairman.

 Vered
Bisker-Leib, Ph. D., M.B.A. Dr. Bisker-Leib has served as a member of our Board of Directors since January 2023. Dr. Bisker-Leib
also served on the board of Old Ayala, Inc. from August 2023 to December 2022. Dr. Bisker-Leib is the President and Chief Operating Officer
of Compass Therapeutics, Inc. where she has been a member of the executive leadership team since November 2017. Prior to Compass, Dr.
Bisker-Leib advised Atlas Ventures portfolio companies as an entrepreneur-in-residence from November 2016 to November 2017. Previously,
as the Chief Business Officer of Cydan Development, Inc. from October 2014 to October 2016, Dr. Bisker-Leib founded biotech companies
focused on therapies addressing rare diseases, including Imara Inc. Dr. Bisker-Leib was a member of BMS' strategic transactions
group where she assumed roles of increasing responsibility across five therapeutic areas, most recently as an Executive Director and
Global Head of business development for the cardiovascular and metabolic franchises. Dr. Bisker-Leib received a Ph. D. in Chemical Engineering
and an M.B.A. from the University of Massachusetts, Amherst. Dr. Bisker-Leib has a B.Sc. in Chemical Engineering from the Israel Institute
of Technology, Haifa. We believe that Dr. Bisker-Leib's extensive experience in the life-science industry qualifies her to serve
on our board of directors.

 Roni
A. Appel. Mr. Appel has served as a member of our Board of Directors since November 2004. He was our President and Chief Executive
Officer from January 1, 2006 until December 2006 and Secretary and Chief Financial Officer from November 2004 to September 2006. From
December 15, 2006 to December 2007, Mr. Appel served as a consultant to us. Mr. Appel currently is a self-employed consultant and the
Co-Founder and President of Spirify Pharma Inc. Previously, he served as Chief Executive Officer of Anima Biotech Inc., from 2008 through
January 31, 2013. From 1999 to 2004, he was a partner and managing director of LV Equity Partners (f/k/a LibertyView Equity Partners).
From 1998 until 1999, he was a director of business development at Americana Financial Services, Inc. From 1994 to 1996, he worked as
an attorney. Mr. Appel holds an M.B.A from Columbia University (1998) and an LL.B. from Haifa University (1994). Mr. Appel's longstanding
service with us and his entrepreneurial investment career in early-stage biotech businesses qualify him to serve as our director.

 Kenneth
Berlin. Mr. Berlin has served as our President and Chief Executive Officer and a member of our Board of Directors since April
2018. Mr. Berlin served as our Interim Chief Financial Officer from September 2020 to May 2022. Prior to joining Advaxis, Mr. Berlin
served as President and Chief Executive Officer of Rosetta Genomics from November 2009 until April 2018. Prior to Rosetta Genomics, Mr.
Berlin was Worldwide General Manager at cellular and molecular cancer diagnostics developer Veridex, LLC, a Johnson & Johnson company.
At Veridex he grew the organization to over 100 employees, launched three cancer diagnostic products, led the acquisition of its cellular
diagnostics partner, and delivered significant growth in sales as Veridex transitioned from an R&D entity to a commercial provider
of oncology diagnostic products and services. Mr. Berlin joined Johnson & Johnson in 1994 and served as corporate counsel for six
years. From 2001 until 2004 he served as Vice President, Licensing and New Business Development in the pharmaceuticals group, and from
2004 until 2007 served as Worldwide Vice President, Franchise Development, Ortho-Clinical Diagnostics. Mr. Berlin holds an A.B. degree
from Princeton University and a J.D. from the University of California Los Angeles School of Law. Mr. Berlin's experience in life
science companies, as well as his business experience in general, qualify him to service as our director.

 Yuval
Cabilly, Ph. D. Dr. Cabilly has served as a member of our Board of Directors since October 2023. Dr. Cabilly previously
served as a director of Biosight. Dr. Cabilly is the Co-Founder and Managing Partner of Israel Biotech Fund. Dr. Cabilly received his
PhD in molecular cell biology from Tel Aviv University, where his research focused on a neurodegenerative disease, and several of his
articles have been published in well-known scientific journals. We believe that Dr. Cabilly's extensive experience identifying,
funding and engaging in business development activities in the life-science industry qualifies him to serve on the Board.

 Murray
A. Goldberg, M.B.A. Mr. Goldberg has served as a member of our Board of Directors since January 2023. Mr. Goldberg also served
on the board of Old Ayala, Inc. from December 2017 to December 2022. Mr. Goldberg held various management positions at Regeneron Pharmaceuticals,
Inc., a biopharmaceutical company, from March 1995 to March 2015, including as Senior Vice President of Administration and Assistant
Secretary from October 2013 to March 2015, as Chief Financial Officer and Senior Vice President, Finance and Administration and Assistant
Secretary from March 1995 to October 2013 and as Treasurer from March 1995 to October 2012. Mr. Goldberg previously served on the boards
of directors of Aerie Pharmaceuticals Inc., a biopharmaceutical company, from August 2013 to June 2020, where he also served as the chairman
of its audit committee, and Teva Pharmaceuticals Industries Ltd. from July 2017 to June 2020. Mr. Goldberg received a B.S. in Engineering
from New York University, a Master's degree in International Economics from the London School of Economics and an M.B.A. from the
University of Chicago. We believe that Mr. Goldberg is qualified to serve on our board of directors because of his broad financial, operational
and transactional experience in the industry.

 Pini
Orbach, Ph. D. Dr. Orbach has served as a member of our Board of Directors since October 2023. Dr. Orbach previously served as
a director of Biosight. Dr. Orbach is the Head of the Pharma Division of Arkin Holdings and a board member of several pharmaceutical
companies, including UroGen Pharma and Quiet Therapeutics, from which he shares his extensive hands-on drug development and business
experience. Dr. Orbach has experience with United States based pharmaceutical companies such as, Arisaph Pharmaceuticals and Epix Pharmaceuticals
(NASDAQ, EPIX), as well as Israeli-based companies cCAM BioTherapeutics - a cancer immunotherapy company, which was sold to Merck in
2015 for $605M. Dr. Orbach holds a PhD from the University of Florida, and was a postdoctoral fellow at Harvard Medical School –
Massachusetts General Hospital. We believe that Dr. Orbach's extensive experience in the life-science industry qualifies him to
serve on the Board.

 Bridget
Martell, M.D. Dr. Martell has served as a member of our Board of Directors since October 2023. Dr. Martell is a seasoned biopharmaceutical
corporate executive with a demonstrated track record in financing, building, and leading highly successful companies. She has served
in numerous C-Suite, Venture, and Independent Board roles, most recently President and Chief Executive Officer of Artizan Biosciences,
Inc., a part-time Healthcare Venture Partner with AlleyCorp, an early stage venture capital company, and as an independent board director
of Achieve Life Sciences, Aligos Therapeutics, and POINT Biopharma (acquired by Lilly, September 2023). Under the auspice of her consulting
practice, BAM Consultants LLC, Dr. Martell has held various leadership positions in early stage to late stage public and private companies,
including Chief Medical Officer of three private and two publicly traded companies as well as at RRD International, a boutique Contract
Research Organization (acquired by Uniphar in 2021). Dr Martell began her Pharmaceutical career at Pfizer were she held leadership roles
of increasing responsibility at from 2005 to 2011. Dr. Martell earned her B.S. in microbiology from Cornell University, her M.A. in molecular
immunology from Boston University and her M.D. from the Chicago Medical School. She completed her internship and residency in internal
medicine and was an internal medicine chief resident and RWJ Faculty Clinical Scholar at Yale University. Dr. Martell is board certified
in both internal and addiction medicine. We believe that Dr. Martell's extensive experience in the life-science industry qualifies
her to serve on the Board.

 Robert
Spiegel, M.D., F.A.C.P. Dr. Spiegel has served as a member of our Board of Directors since January 2023. Dr. Spiegel also served
on the board of Old Ayala, Inc. from December 2017 to December 2022. Since 2012, Dr. Spiegel has served as an Associate Professor at
the Weill Cornell Medical School. In addition, Dr. Spiegel has served as a Senior Advisor to Warburg Pincus, a private equity firm, and
an Advisor to the Israel Biotech Fund, a venture investment fund since 2010 and 2016, respectively. Prior to these positions, Dr. Spiegel
served as Chief Medical Officer of PTC Therapeutics, Inc., a biopharmaceutical company, from March 2011 to April 2016. Prior to his time
at PTC Therapeutics, Dr. Spiegel held various management positions at Schering-Plough Corporation, a global healthcare company, including
as Chief Medical Officer and Senior Vice President of the Schering-Plough Research Institute, the pharmaceutical research arm of the
Schering-Plough Corporation from 1998 to 2009. Dr. Spiegel is currently a member of the board of directors of Geron Corporation and Cyclacel
Pharmaceuticals, Inc., biopharmaceutical company, since 2010 and 2018, respectively. Dr. Spiegel has previously served as a member of
the board of directors for Sucampo Pharmaceuticals, Inc., a biopharmaceutical company, Edge Therapeutics, Inc., a biotechnology company,
Avior Computing Corporation, a privately-held governance risk and compliance process technology company, Talon Therapeutics, Inc., a
biopharmaceutical company, Capstone Therapeutics Corp., a biotechnology company, the Cancer Institute of New Jersey and Cancer Care New
Jersey. Dr. Spiegel received a B.A. in 1971 from Yale University and an M.D. from the University of Pennsylvania in 1975. Following his
residency in internal medicine, Dr. Spiegel completed a fellowship in medical oncology at the National Cancer Institute. We believe that
Dr. Spiegel's extensive medical and scientific knowledge as well as his experience in the life science industry qualifies him to
serve on our board of directors.

 Our
Executive Officers

 Information
about our Executive Officers is set forth in Part I, Item 4 of the Original Filing.

Independence

 Dr.
Bisker-Leib, Mr. Appel, Mr. Goldberg, Dr. Martell and Dr. Spiegel are independent in accordance with the definition set forth in the
OTCQX Rules for U.S. Companies. Each member of each of our Board committees is an independent director under the OTCQX rules
applicable to such committees. The Board considered the information included in transactions with related parties as outlined below along
with other information the Board considered relevant, when considering the independence of each director.

 Board
Meetings and Committee Meetings; Attendance

 All
directors who served as directors at the time attended our 2023 Annual Meeting of Stockholders. Directors are expected, but not required,
to attend the annual meeting of stockholders. We will encourage, but will not require, our directors to attend the Annual Meeting. Except
for Drs. Bisker-Leib, Cabilly, Orbach and Sidransky, who recused themselves from meetings of the Board at which matters were considered
as to which they may not have been disinterested directors, as defined under applicable law, each of our directors attended at least
seventy-five percent (75%) of the aggregate of: (1) the total number of Board meetings; and (2) the total number of meetings of the committee(s)
of which they were a member, if any. Our Board held 14 meetings during our fiscal year ended December 31, 2023.

 Board
Committees

 Presently,
the Board has the following standing committees: Audit Committee, Compensation Committee, Nominating and Corporate Governance Committee
and Research and Development Committee. Each of the standing committees is comprised solely of independent directors.

 Audit
Committee

 The
Audit Committee of our Board of Directors is currently composed of three directors, all of whom satisfy the independence and other standards
for Audit Committee members under the OTCQX Rules for U.S. Companies and the Exchange Act rules. The Audit Committee is responsible
for recommending the engagement of auditors to the full Board, reviewing the results of the audit engagement with the independent registered
public accounting firm, identifying irregularities in the management of our business in consultation with our independent accountants,
and suggesting an appropriate course of action, reviewing the adequacy, scope, and results of the internal accounting controls and procedures,
reviewing the degree of independence of the auditors, as well as the nature and scope of our relationship with our independent registered
public accounting firm, and reviewing the auditors' fees. The Audit Committee is comprised of Mr. Goldberg, Mr. Appel and Dr. Bisker-Leib,
with Mr. Goldberg serving as the Audit Committee's financial expert as defined under Item 407 of Regulation S-K.

 The
Audit Committee held four meetings during our fiscal year ended December 31, 2023.

 The
Audit Committee operates under a written Audit Committee Charter, which is available to stockholders on our website at

 Compensation
Committee

 The
Compensation Committee of our Board of Directors determines the salaries, bonuses, and incentive and equity compensation of our officers
subject to applicable employment agreements, provides recommendations for the salaries and incentive compensation of our other employees
and consultants, and reviews and oversees our compensation programs and policies generally. For executives other than the Chief Executive
Officer, the Compensation Committee receives and considers performance evaluations and compensation recommendations submitted to the
Committee by the Chief Executive Officer. In the case of the Chief Executive Officer, the evaluation of his performance is conducted
by the Compensation Committee, which determines any adjustments to his compensation as well as awards to be granted. The agenda for meetings
of the Compensation Committee is usually determined by its Chairman, with the assistance of the Company's Chief Executive Officer.
the Compensation Committee is comprised of Mr. Appel, Dr. Bisker-Leib and Dr. Sidransky.

 The
Compensation Committee held one meeting during our fiscal year ended December 31, 2023.

 The
Compensation Committee operates under a written Compensation Committee Charter, which is available to stockholders on our website at

 Nominating
and Corporate Governance Committee

 The
functions of the Nominating and Corporate Governance Committee include identifying and recommending to the Board individuals qualified
to serve as members of the Board and on the committees of the Board, advising the Board with respect to matters of board composition,
procedures and committees, developing and recommending to the Board a set of corporate governance principles applicable to us and overseeing
corporate governance matters generally including review of possible conflicts and transactions with persons affiliated with directors
or members of management, and overseeing the annual evaluation of the Board and our management. the Nominating and Governance Committee
is comprised of Drs. Sidransky and Spiegel.

 The
Nominating and Governance Committees held one meeting during our fiscal year ended December 31, 2023.

 The
Nominating and Corporate Governance Committee operates under a written Nominating and Corporate Governance Committee Charter, which is
available to stockholders on our website at

 The
Nominating and Corporate Governance Committee will consider director candidates recommended by eligible stockholders. Stockholders may
recommend director nominees for consideration by the Nominating and Corporate Governance Committee by writing to the Nominating and Corporate
Governance Committee, Attention: Chairman, Ayala Pharmaceuticals, Inc., 9 Deer Park Drive, Suite K-1, Monmouth Junction, NJ 08852. Any
recommendations for director made to the Nominating and Corporate Governance Committee should include the nominee's name and qualifications
for membership on our Board and must include the information required pursuant to the By-Laws with respect to the nominating stockholder
and the director nominee.

 The
Company must receive the written nomination for an annual meeting not less than 90 days and not more than 120 days prior to the first
anniversary of the previous year's annual meeting of stockholders, or, if no annual meeting was held the previous year or the date
of the annual meeting is advanced more than 30 days before or delayed more than 60 days after the anniversary date, we must receive the
written nomination not later than the later of 90 days prior to such annual meeting or the close of business on the tenth day following
the day on which public announcement of the date of such annual meeting is made by the Company.

 The
Nominating and Corporate Governance Committee expects, as minimum qualifications, that nominees to our Board of Directors (including
incumbent directors) will enhance our Board of Director's management, finance and/or scientific expertise, will not have a conflict
of interest and will have a high ethical standard. A director nominee's knowledge and/or experience in areas such as, but not limited
to, the medical, biotechnology, or life sciences industry, equity and debt capital markets and financial accounting are likely to be
considered both in relation to the individual's qualification to serve on our Board of Directors and the needs of our Board of
Directors as a whole. Other characteristics, including but not limited to, the director nominee's material relationships with us,
time availability, service on other boards of directors and their committees, or any other characteristics that may prove relevant at
any given time as determined by the Nominating and Corporate Governance Committee shall be reviewed for purposes of determining a director
nominee's qualification.

 Candidates
for director nominees are evaluated by the Nominating and Corporate Governance Committee in the context of the current composition of
our Board, our operating requirements and the long-term interests of our stockholders. The Nominating and Corporate Governance Committee
then uses its network of contacts to compile a list of potential candidates, but may also engage, if it deems appropriate, a professional
search firm. The Nominating and Corporate Governance Committee conducts any appropriate and necessary inquiries into the backgrounds
and qualifications of possible candidates after considering the function and needs of our Board. In the case of incumbent directors whose
terms of office are set to expire, the Nominating and Corporate Governance Committee reviews such directors' overall service to
us during their term, including the number of meetings attended, level of participation, quality of performance, and any other relationships
and transactions that might impair such directors' independence. The Nominating and Corporate Governance Committee meets to discuss
and consider such candidates' qualifications and then selects a nominee for recommendation to our Board by majority vote. To date,
the Nominating and Corporate Governance Committee has not paid a fee to any third party to assist in the process of identifying or evaluating
director candidates.

 In
identifying candidates for membership on the Board, the Nominating and Corporate Governance Committee takes into account all factors
it considers appropriate and will seek to ensure that its membership consists of sufficiently diverse backgrounds, meaning a mix of backgrounds
and experiences that will enhance the quality of the Board's deliberations and decisions. In considering candidates for the Board,
the independent directors will consider, among other factors, diversity with respect to viewpoints, skills, experience and other demographics.
In February 2020, the Nominating and Corporate Governance Committee instituted a policy whereby diversity, including diversity of gender,
origin and background, became a key consideration when identifying candidates for membership on the Board. The Nominating and Corporate
Governance Committee also may consider the extent to which the candidate would fill a present need on the Board.

 Research
and Development Committee

 The
Research and Development Committee was established in August 2013 with the purpose of providing advice and guidance to the Board on scientific
and medical matters and development. The functions of the Research and Development Committee include providing advice and guidance to
the Board on scientific matters and providing advice and guidance to the Board on medical matters. The Nominating and Governance Committee
is comprised of Drs. Sidransky and Spiegel.

 The
Research and Development Committee did not meet during our fiscal year ended December 31, 2023.

 Board
Leadership Structure

 On
May 27, 2015, David Sidransky was appointed Chairman and continues to serve as Chairman. Dr. Sidransky's experience in life science
companies, as well as his scientific knowledge, his history with our Company and his own history of innovation and strategic thinking,
qualify him to serve as our Chairman. Additionally, on April 23, 2018, Kenneth Berlin was appointed President and Chief Executive Officer
and named a member of the Board of Directors. Mr. Berlin's knowledge of industry standards and his experience in industry operations,
and his leadership experience complements Dr. Sidransky's scientific knowledge.

 While
we do not have a formal policy regarding the separation of our principal executive officer and chairman of our Board, we believe the
current structure is in the best interest of the Company at this time. Further, this structure demonstrates to our employees, customers
and stockholders that we are under strong leadership, with multiple skills and sets the tone for managing our operations. This leadership
structure promotes strategic development and execution, timely decision-making and effective management of our resources. We believe
that we are well-served by this structure.

 Code
of Ethics

 We
have adopted a Code Business Conduct and Ethics that applies to our employees, senior management and Board of Directors, including the
Chief Executive Officer and Chief Financial Officer. The Code of Business Conduct and Ethics is available on our website at

 Risk
Oversight

 The
Board has an active role in overseeing our risk management and is responsible for discussing with management and the independent auditors
our major financial risk exposures, the guidelines and policies by which risk assessment and management is undertaken, and the steps
management has taken to monitor and control risk exposure. The Board regularly engages in discussions of the most significant risks that
we are facing and how those risks are being managed. The Board believes that its work and the work of the Chairman and the principal
executive officer, enables the Board to effectively oversee our risk management function.

 Stockholder
Communications to the Board

 Stockholders
may contact an individual director, the Board as a group, or a specified Board committee or group, including the non-employee directors
as a group, by writing to the following address:

 Ayala
Pharmaceuticals, Inc.

Deer Park Drive, Suite K-1

 Monmouth
Junction, NJ 08852

 Attn:
Board of Directors

 Each
communication should specify the applicable addressee or addressees to be contacted as well as the general topic of the communication.
We will initially receive and process communications before forwarding them to the addressee. We generally will not forward to the directors
a stockholder communication that we determine to be primarily commercial in nature or relates to an improper or irrelevant topic, or
that requests general information about us.

 Delinquent
Section 16(a) Reports

 Section
16(a) of the Exchange Act requires the Company's directors, executive officers and persons who beneficially own more than 10 percent
of the Company's common stock (collectively, "Reporting Persons") to file with the Commission initial reports of ownership
and changes in ownership of the Company's common stock. Based solely on its review of the copies of such reports received or written
representations from certain Reporting Persons that no other reports were required, the Company believes that during its fiscal year
ended December 31, 2023 all filing requirements applicable to the Reporting Persons were timely met except (i) Israel Biotech Fund filed
its Form 3 late and thereafter was late in filing two Form 4s listing a total of four transactions and (ii) each of Drs. Martell and
Orbach, as well as Mr. Golan, filed his or her Form 3 six days late, and Dr. Cabilly filed his 11 days late.

 ITEM
11. EXECUTIVE COMPENSATION

 The
Compensation Committee of the Board has responsibility for establishing, implementing and continually monitoring adherence with the
Company's compensation philosophy. The Compensation Committee seeks to ensure that the total compensation paid to the
executives is fair, reasonable and competitive. Our named executive officers for our fiscal year ended December 31, 2023 are Mr.
Berlin, Dr. Gutierrez and Mr. Igor Gitelman, who served as our Interim Chief Executive Officer until October 18, 2023, when Mr.
Golan assumed that role. Mr. Golan's compensation from the Company for 2023 was less than
$100,000, and he is thus omitted from the following table based on Instruction 2 to Item 402(m)(2) of Regulation S-K.

 The
following table summarizes all compensation awarded to, earned by or paid to our Named Executive Officers for our last fiscal year ended
December 31, 2023, as well as the "stub" period from November 1, 2022 through December 31, 2022, and our last full fiscal
year, which ended October 31, 2022. As previously disclosed, our fiscal year end was changed from October 31 to December 31, effective
on January 26, 2023.

 Name and
 Principal Position

 Year

 Salary

 Bonus

 Stock
 Awards

 Option
 Awards

 All Other
 Compensation (1)

 Total

 Kenneth Berlin

 2023

 $
 693,438

 $
 -

 $
 -

 $
 -

 $
 42,852

 $
 736,290

 President, Chief Executive Officer

 Stub

 $
 107,095

 $
 -

 $
 -

 $
 -

 $
 4,539

 $
 111,634

 2022

 $
 643,427

 $
 -

 $
 -

 $
 -

 $
 60,341

 $
 703,768

 Andres Gutierrez

 2023

 $
 533,414

 $
 -

 $
 -

 $
 -

 $
 44,533

 $
 577,947

 Senior VP, Chief Medical Officer

 Stub

 $
 82,380

 $
 -

 $
 -

 $
 -

 $
 9,605

 $
 91,985

 2022

 $
 494,944

 $
 -

 $
 -

 $
 -

 $
 38,683

 $
 533,627

 Igor Gitelman (2)

 2023

 $
 315,182

 $
 -

 $
 -

 $
 -

 $
 44,659

 $
 359,841

 Former Interim Chief Financial Officer

 Stub

 $
 48,865

 $
 -

 $
 -

 $
 -

 $
 6,310

 $
 55,175

 and VP of Finance

 2022

 $
 299,985

 $
 -

 $
 -

 $
 -

 $
 42,224

 $
 342,209

 (1)

 These amounts primarily represent:

 premiums
 paid for health insurance on each of the officers named in this table, as follows: 2023, Mr. Berlin $17,678, Dr. Gutierrez $31,640
 and Mr. Gitelman $31,640; stub, Mr. Berlin $3,472, Dr. Gutierrez $6,108 and Mr. Gitelman $6,108; and 2022, Mr. Berlin $35,179, Dr.
 Gutierrez $35,179 and Mr. Gitelman $35,179.

 premiums
 paid for life and AD&D insurance on each of the officers named in this table, as follows: 2023, Mr. Berlin $536, Dr. Gutierrez
 $536 and Mr. Gitelman $536; stub, Mr. Berlin $110, Dr. Gutierrez $110 and Mr. Gitelman $110; and 2022, Mr. Berlin $536, Dr. Gutierrez
 $536 and Mr. Gitelman $536.

 matching
 contributions to 401(k) plan to each of the officers named in this table, as follows: 2023, Mr. Berlin $24,639, Dr. Gutierrez $12,357
 and Mr. Gitelman $12,483; stub, Mr. Berlin $865, Dr. Gutierrez $3,295 and Mr. Gitelman $0; and 2022, Mr. Berlin $24,026, Dr. Gutierrez
 $2,368 and Mr. Gitelman $5,909.

 (2)

 Mr. Gitelman served as the Company's Chief Financial
Officer through October 18, 2023.

 Outstanding
Equity Awards at Fiscal Year-End

 The
following table summarizes all outstanding equity awards held by our named executive officers as of December 31, 2023.

 Name

 Number of
 Securities
 Underlying
 Unexercised
 Options (#)
 Exercisable

 Number of
 Securities
 Underlying
 Unexercised
 Options (#)
 Unexercisable

 Option
 Exercise
 Price ($)

 Option
 Expiration
 Date

 Kenneth Berlin

 —

 1,944.00

 4/23/2028

 —

 648.00

 11/5/2028

 —

 24.80

 10/24/2029

 —

 52.80

 5/4/2030

 Andres Gutierrez

 —

 1,944.00

 4/23/2028

 —

 648.00

 11/5/2028

 —

 24.80

 10/24/2029

 —

 52.80

 5/4/2030

 Igor Gitelman

 —

 31.20

 11/16/2030

 Employment
Agreements with Named Executive Officers

 The
Company appointed Mr. Berlin as President and Chief Executive Officer, effective April 23, 2018. The Company and Mr. Berlin entered into
an employment agreement, effective April 23, 2018, which was subsequently amended by Amendment No. 1 thereto entered into as of September
1, 2022. The employment agreement, as so amended, provides for an initial three-year term, after which it will be automatically renewed
for one-year periods, unless otherwise terminated by either party upon ninety (90) days' written notice. The employment agreement
provides that Mr. Berlin will receive a base salary of $576,493 per year, as adjusted for annual increases by the Compensation Committee
since entry of the agreement, and he is eligible for an annual bonus targeted at 55% of his base salary based on achievement of performance
goals in the discretion of the Compensation Committee. Mr. Berlin also received a one-time lump-sum bonus equal to $150,000 that was
paid within fifteen (15) days following the effective date of the agreement. Mr. Berlin also received 50,000 stock options and 16,667
restricted stock units (both as adjusted to account for our 1 for 15 reverse stock split effective March 29, 2019), which vest in equal
instalments over the first three years of his employment. In May 2020, Mr. Berlin received an additional 50,000 stock options, which
vest in equal instalments of 16,667 options on the first three anniversary dates of the grant.

 In
the event Mr. Berlin's employment is terminated without Just Cause during the period beginning three months prior to a Change in
Control (as defined in Mr. Berlin's employment agreement) and ending 18 months after the Change in Control (such period, the "CIC
Protection Period"), or if Mr. Berlin voluntarily resigns with Good Reason, during the CIC Protection Period, and provided that
Mr. Berlin continues to comply with certain covenants set forth in his employment agreement, in addition to the applicable base salary
and any earned but unpaid bonus for the prior fiscal year, plus any accrued but unused vacation time and unpaid expenses that have been
earned as of the date of such termination, Mr. Berlin is entitled to the following severance benefits: (i) an amount equal to 2.0 times
the sum of the applicable base salary plus an amount equal to Mr. Berlin's target bonus, payable in a single lump sum within sixty
(60) days of the termination, (ii) a bonus payment for the year in which the employment is terminated equal to the target bonus percentage,
multiplied by the base salary in effect at the time of termination, multiplied by a fraction, the numerator of which is the number of
calendar days Mr. Berlin was employed during such year and the denominator is 365, (iii) continued health and welfare benefits for 24
months, and (iv) full vesting and exercisability of all stock options and stock awards.

 The
named executive officer employment agreements contain customary covenants regarding non-solicitation, non-compete, confidentiality and
works for hire.

 ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 Security
Ownership of Certain Beneficial Owners

 The
following table lists the persons we know to be beneficial owners of at least five percent of our common stock as of April 26, 2024.

 Name and Address of Beneficial Owner

 Number
 of Shares

 Approximate
 Percentage
 of Outstanding
 Common Stock (1)

 I.B.F Management Ltd. (2)

 24,492,541

 57.4
 %

 HaOgen Tower, 4 Oppenheimer St.

 Rehovot 7670104, Israel

 Arkin Bio Ventures Limited Partnership (3)

 8,940,448

 %

 Hamonofim 11 St

 Hertzlia, 4672537 Israel

 (1)

 Based
 on 42,633,400 shares of common stock outstanding as of April 26, 2024.

 (2)

 Based
 on Amendment No. 3 to Schedule 13D filed with the Commission on February 12, 2024. The filing states that I.B.F Management Ltd. has
 shared voting and dispositive power over all such shares. I.B.F Management Ltd. is the management company of each of Israel Biotech
 Fund I, L.P. and Israel Biotech Fund II, L.P., which are noted in such filing as having shared voting and dispositive power over
 20,661,639 and 25,130,903 shares of common stock, respectively. The general partners of Israel Biotech Fund I, L.P. and Israel Biotech
 Fund II, L.P., which are Israel Biotech Fund GP Partners, L.P. and Israel Biotech Fund GP Partners II, L.P., respectively, also have
 shared voting and dispositive power over such shares.

 (3)

 Based on the records of the Company in connection with transactions engaged
in by the Company since November 2023, Arkin Bio Ventures Limited Partnership together with Arkin Media Ltd. (collectively "Arkin")
are the beneficial owners of 8,940,448 shares of common stock issued or issuable upon the exercise or conversion of convertible notes, and warrants that are
or were held by Arkin.

 ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS (CONTINUED)

 Security
Ownership of Management

 The
following table lists the number of shares of our common stock beneficially owned, as of April 26, 2024, by each director and director
nominee, each of our executive officers, certain members of our senior management, and by our directors, nominees and executive officers
as a group. In general, beneficial ownership includes those shares a person has the power to vote or transfer, as well as shares owned
by immediate family members who live with that person.

 Name

 Number
 of Shares

 Approximate
 Percentage
 of Outstanding
 Common Stock (1)

 Ken Berlin (2)

 2,413

 *

 Roy Golan

 -

 *

 Dr. David Sidransky (3)

 5,145

 *

 Dr. Vered Bisker-Leib (4)

 3,981

 *

 Roni A. Appel (5)

 *

 Yuval Cabilly, Ph. D. (6)

 -

 *

 Murray Goldberg (7)

 7,963

 *

 Bridget Martell, M.D. (8)

 -

 *

 Pini Orbach, Ph. D. (9)

 -

 *

 Dr. Robert Spiegel (10)

 7,963

 *

 Dr. Andres Gutierrez (11)

 1,297

 *

 Igor Gitelman (12)

 *

 All Current Directors and Officers as a Group (10 People) (13)

 29,687

 *

 *

 Represents less than one percent of our outstanding common stock.

 (1)

 Based
 on 42,633,400 shares of common stock outstanding as of April 26, 2024.

 (2)

 271 issued shares of our Common Stock, and options to purchase 2,142 shares of our Common Stock exercisable within 60 days.

 (3)

 93 issued shares of our Common Stock and options to purchase 5,052 shares of our Common Stock exercisable within 60 days.

 (4)

 options to purchase 3,981 shares of our Common Stock exercisable within 60 days.

 (5)

 133 issued shares of our Common Stock, options to purchase 351 shares of our Common Stock exercisable within 60 days and warrants
 to purchase 24 shares of our Common Stock exercisable within 60 days. (7) Represents options to purchase 7,963 shares of our Common
 Stock exercisable within 60 days.

 (10)

 options to purchase 7,963 shares of our Common Stock exercisable within 60 days.

 (11)

 47 issued shares of our Common Stock and options to purchase 1,250 shares of our Common Stock exercisable within 60 days.

 (12)

 options to purchase 417 shares of our Common Stock exercisable within 60 days.

 (13)

 544 issued shares of our Common Stock, options to purchase 29,119 shares of our Common Stock exercisable within 60 days and warrants
 to purchase 24 shares of our Common Stock exercisable within 60 days.

 The
table below presents certain information as of December 31, 2023 concerning securities issuable in connection with equity compensation
plans that have been approved by the Company's stockholders.

 Plan category

 Number of

 securities to
 be potentially issued
 upon realization of restricted stock awards]

 Weighted-average exercise price of outstanding options, warrants and rights

 Number of securities remaining available for issuance under equity compensation plans, excluding securities reflected in column (a)

 (a)

 (b)

 (c)

 Equity compensation plans approved by security holders

 —

 N/A

 2,981,248

 Equity compensation plans not approved by security holders

 —

 —

 —

 Total

 —

 N/A

 2,981,248

 ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 As
the Company has disclosed in its prior filings under the Exchange Act, the Company has entered into several transactions with entities
associated with Israel Biotech Fund (with which Dr. Cabilly is associated) and Arkin Holdings (with which Dr. Orbach is associated).
These transactions are described as follows:

 On
August 7, 2023, the Company issued a Senior Secured Convertible Promissory Note (the "Note") to Israel Biotech Fund I, L.P.
with a principal amount of up to $2,000,000, which amount was funded soon thereafter. In connection with the Note, the Company also entered
into or provided a Security Agreement concurrent with the issuance of the Note. The Company's obligations under the Note were guaranteed
by its subsidiary, Old Ayala, Inc. The Note was convertible into shares of the Company's common stock under the terms described
in the Note, with the expected mandatory conversion in the event of a PIPE (Private Investment into a Public Entity) with the minimum
of $15 million investment at a price equal to 65% of the lowest price offered in the PIPE.

 On
September 15, 2023, the Company entered into a Side Letter Agreement for Conversion (the "Side Letter Agreement") with Israel
Biotech Fund I, L.P., Israel Biotech Fund II, L.P. and certain other investors named therein (the "Investors"). The Side
Letter Agreement references (i) the merger contemplated by the Agreement and Plan of Merger and Reorganization, dated as of July 26,
2023, between the Company, Biosight Ltd. ("Biosight") and a wholly owned subsidiary of the Company (the "Merger Agreement"),
pursuant to which such subsidiary shall merge with and into Biosight, with Biosight surviving as a wholly owned subsidiary of the Company
(the "Merger"), (ii) that certain Senior Secured Convertible Promissory Note entered into between the Company and the investors
named therein for an original principal amount of up to $2,000,000 (the "Promissory Note"), which was previously disclosed
by the Company in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, and (iii) a Simple Agreement for Future Equity
by and between Biosight and the Investors, pursuant to which the Investors agreed to invest in Biosight up to $2,500,000, and Biosight
agreed to issue equity interests in Biosight to the Investors in certain circumstances (the "SAFE").

 Pursuant
to the Side Letter Agreement, the Company and the Investors agreed that should the contemplated merger between the Company, Biosight
Ltd. ("Biosight") and a wholly owned subsidiary of the Company (the "Biosight Merger"), pursuant to which such
subsidiary shall merge with and into Biosight, be consummated prior to the termination of the SAFE, then the Investors shall be entitled
to receive, in consideration for amounts actually invested in Biosight up to $2,500,000, shares of the Company's common stock in
a number equal to the amounts actually invested by the Investors in Biosight, divided by a conversion price equal to sixty-five percent
(65%) of an amount determined in accordance with such Side Letter Agreement

 On
November 17, 2023, the Company issued Senior Convertible Promissory Notes (collectively, the "Senior Convertible Notes"),
in an aggregate amount of $4.0 million, to several existing lenders and investors in the Company, including Israel Biotech Fund I, L.P.,
Israel Biotech Fund II, L.P., Arkin Bio Ventures L.P. and Biotel Limited. The Company and Israel Biotech Fund I, L.P. and Israel Biotech
Fund II, L.P. also agreed to amend and restate the terms of the Senior Secured Convertible Promissory Notes issued by the Company on
August 7, 2023 (the "Existing Secured Notes"), to conform to the terms of the Senior Convertible Notes. The Senior Convertible
Notes and the amended and restated Existing Secured Notes were convertible into shares of the Common Stock at any time at the option
of the noteholders, and subject to mandatory conversion upon certain events, at a conversion price equal to the lower of (i) 50% of the
Common Stock's price per share as of market close on November 16, 2023 and (ii) 50% of the Common Stock's price per share
as of the close of market on the Trading Day immediately prior to the date of the Notice of Conversion, subject to certain adjustments.
In connection with the issuance of the Senior Convertible Note and the amendment and restatement of the Existing Secured Notes, the Company
also issued to the noteholders warrants (the "Warrants") to purchase an aggregate of 22,500,000 shares of the Common Stock
with an exercise price equal to the lower of (A) 50% of the Common Stock's price per share as of market close on November 16, 2023
and (ii) 50% of the Common Stock's price per share as of the close of market on the Trading Day immediately prior to the date of
the Notice of Exercise of the warrant, subject to adjustment, which exercise may be on a cashless basis.

 On
February 7, 2024, the noteholders and warrant holders exercised in full their conversion right under the Senior Convertible Notes, the
Existing Secured Notes and the Warrants (the latter on a cashless basis), utilizing a conversion price equal to 50% of the Common Stock's
price per share as of market close on November 16, 2023. As a result, an aggregate of 30,736,555 shares of Common Stock were issued by
the Company to the noteholders and warrant holders.

 On
March 1, 2024, the Company issued Senior Convertible Promissory Notes (collectively, the "March 1 Convertible Notes"), in
an aggregate amount of $2.0 million, to several existing lenders and investors in the Company, including Israel Biotech Fund I, L.P.,
Israel Biotech Fund II, L.P., Arkin Bio Ventures L.P. and Biotel Limited. The March 1 Convertible Notes were convertible into shares
of the Company's common stock, at any time at the option of the noteholders, and subject to mandatory conversion upon certain events,
including a Change of Control Transaction, as defined in the March 1 Convertible Notes, at a conversion price equal to the lower of (i)
50% of the Common Stock's price per share as of market close on November 16, 2023 and (ii) 50% of the Common Stock's price
per share as of the close of market on the Trading Day immediately prior to the date of the Notice of Conversion, subject to certain
adjustments. In connection with the issuance of the March 1 Convertible Notes, the Company also issued to the noteholders warrants (the
"March 1 Warrants") to purchase an aggregate of 7,500,000 shares of the Common Stock with an exercise price equal to the
lower of (A) 50% of the Common Stock's price per share as of market close on November 16, 2023 and (ii) 50% of the Common Stock's
price per share as of the close of market on the Trading Day immediately prior to the date of the Notice of Exercise of the warrant,
subject to adjustment, which exercise may be on a cashless basis.

 On
March 25, 2024, March 1 Convertible Notes were automatically converted in full utilizing a conversion price equal to 50% of the Common
Stock's price per share as of market close on March 22, 2024. As a result, an aggregate of 6,666,666 shares of Common Stock were
issued by the Company to the noteholders.

 ITEM
14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 Our
Audit Committee has selected Kost, Forer, Gabbay & Kasierer, a Member of EY Global ("KFGK"), to act in the capacity of
independent accountants for the current fiscal year ending December 31, 2024. KFGK also acted in such capacity with respect to our audited
financial statements as of and for the fiscal year ended December 31, 2023, during which year it replaced our prior independent registered
public accounting firm, Marcum LLP. The information below sets forth the aggregate amount of fees billed for professional services rendered
by KFGK to the Company during the fiscal year ended December 31, 2023. Since KFGK was appointed in the fiscal year ended December 31,
2023, there were no fees billed for professional services rendered by KFGK during the prior fiscal year.

 Fees
Billed by KFGK during the fiscal year ended December 31, 2023

 Audit
Fees. Fees billed to the Company by KFGK for audit services rendered by KFGK for the audit of the Company's 2023 annual financial
statements (including the audit of internal control over financial reporting), for the review of those financial statements included
in the Company's Quarterly Reports on Form 10-Q, and for services that are normally provided by KFGK in connection with statutory
and regulatory filings or engagements, totaled approximately $365,000.

 Audit-Related
Fees. Fees billed to the Company by KFGK during 2023 for audit-related services that were reasonably related to the performance of
the audit or review of the Company's financial statements and are not reported under the preceding paragraph totaled $80,000.

 Tax
Fees. Fees billed to the Company by KFGK during 2023 for professional services rendered for tax compliance, tax advice and tax planning
$10,000.

 All
Other Fees. Other fees billed to the Company by KFGK were $20,000 for 2023.

 The
Audit Committee has considered whether KFGK's provision of services other than professional services rendered for the audit and
review of our financial statements is compatible with maintaining KFGK's independence and has determined that it is so compatible.

 All
audit, audit-related, tax and other services were pre-approved by the Audit Committee pursuant to applicable regulations. The Audit Committee
currently pre-approves all engagements of the Company's accountants to provide both audit and non-audit services and has not established
formal pre-approval policies or procedures. The Audit Committee did not approve any non-audit services pursuant to Rule 2-01 (c) (7)
(i) (C) of Regulation S-X during fiscal 2023.

 PART
IV

 Item
15. Exhibits and Financial Statement Schedules.

 (a)(1)
Financial Statements.

 The
financial statements required by this item are listed in Item 8, "Financial Statements and Supplementary Data" herein.

 (a)(2)
Financial Statement Schedules.

 All
financial statement schedules have been omitted because they are not applicable, not required or the information required is shown in
the financial statements or the notes thereto.

 (a)(3)
Exhibits.

 The
following is a list of exhibits filed as part of this Annual Report on Form 10-K.

 Exhibit

 See
the Exhibit Index in Item 15(b) below.

 Exhibit
 Number

 Description
 of Exhibits

 2.1

 Agreement and Plan of Merger and Reorganization, by and among the Company, Merger Sub, and Old Ayala, dated as of October 18, 2022. Incorporated by reference to Exhibit 2.1 to Current Report on Form 8-K filed with the SEC on October 19, 2022.

 2.2

 Agreement and Plan of Merger and Reorganization, by and among the Company, Merger Sub, and Biosight, Ltd., dated as of July 26, 2023. Incorporated by reference to Exhibit 2.1 to Current Report on Form 8-K filed with the SEC on August 1, 2023.

 2.3+

 Asset Purchase Agreement, dated as of February 5, 2024, by and between Ayala Pharmaceuticals, Inc. and Immunome, Inc. Incorporated by Reference to Exhibit 2.1 to the Current Report on Form 8-K of the Registrant, filed with the SEC on February 6, 2024.

 3.1

 Restated Certificate of Incorporation of Ayala Pharmaceuticals, Inc., dated as of January 27, 2023. Incorporated by reference to Exhibit 2.1 to Annual Report on Form 10-K filed with the SEC on February 10, 2023.

 3.2

 Second Amended and Restated By-Laws of Advaxis, Inc. Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed with the SEC on March 5, 2021.

 3.3

 Amendment No. 1 to the Second Amended and Restated By-Laws of Advaxis, Inc. Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed with the SEC on September 20, 2021.

 4.1

 Form of Warrant Agency Agreement, dated as of September 11, 2018 between Advaxis, Inc. and Continental Stock Transfer and Trust Company (and Form of Warrant contained therein), Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the SEC on September 11, 2018.

 4.2

 Form of Common Warrant dated July 25, 2019 Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on July 25, 2019.

 4.3

 Form of Common Stock Warrant dated November 27, 2020. Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on November 27, 2020.

 4.4

 Form of Pre-Funded Warrant. Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on April 12, 2021.

 4.5

 Form of Accompanying Warrant. Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed with the SEC on April 12, 2021.

 4.6

 Form of Private Placement Warrant. Incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K filed with the SEC on April 12, 2021.

 4.7(1)

 Common Stock Purchase Warrant (Convertible Note), dated March 1, 2024, issued by Ayala Pharmaceuticals, Inc. to Israel Biotech Fund I, L.P. Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the SEC on March 5, 2024.

 4.8

 Description of each class of securities registered under Section 12 of the Securities Exchange Act of 1934. Incorporated by reference to Exhibit 4.7 to the Annual Report on Form 10-K filed with the SEC on February 10, 2023.

 10.1

 License Agreement, between the Trustees of the University of Pennsylvania and the registrant dated as of June 17, 2002, as Amended and Restated on February 13, 2007. Incorporated by reference to Exhibit 10.11 to Annual Report on Form 10-KSB filed with the SEC on February 13, 2007.

 10.2

 Second Amendment to the Amended and Restated Patent License Agreement between the registrant and the Trustees of the University of Pennsylvania dated as of May 10, 2010. Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on June 3, 2010.

 10.3

 2011 Omnibus Incentive Plan of registrant. Incorporated by reference to Annex A to DEF 14A Proxy Statement filed with the SEC on August 29, 2011.

 10.4

 Amendment No. 1, dated as of March 26, 2007, to the License Agreement, between the Trustees of the University of Pennsylvania and Advaxis, Inc. dated as of June 17, 2002, as amended and restated on February 13, 2007. Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.

 10.5

 Amendment No. 3, dated as of December 12, 2011, to the License Agreement, between the Trustees of the University of Pennsylvania and Advaxis, Inc. dated as of June 17, 2002, as amended and restated on February 13, 2007. Incorporated by reference to Exhibit 10.5 to Quarterly Report on Form 10-Q filed with the SEC on June 14, 2012.

 10.6

 Amendment No. 1 to 2011 Omnibus Incentive Plan of registrant. Incorporated by reference to Annex B to DEF 14A Proxy Statement filed with the SEC on July 19, 2012.

 10.7

 Indemnification Agreement. Incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the SEC on August 20, 2013.

 10.8

 Exclusive License and Technology Transfer Agreement by and between Advaxis, Inc. and Global BioPharma, Inc., dated December 9, 2013. Incorporated by reference to Exhibit 10.79 to Annual Report on Form 10-K/A filed with the SEC on February 6, 2014.

 10.9

 Distribution and Supply Agreement, dated as of January 20, 2014, by and between Advaxis, Inc. and Biocon, Limited. Incorporated by reference to Exhibit 10.7 to Quarterly Report on Form 10-Q filed with the SEC on March 17, 2014.

 10.10

 Exclusive License Agreement, dated March 19, 2014, by and between Advaxis, Inc. and Aratana Therapeutics, Inc. Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on June 10, 2014.

 10.11

 Clinical Trial Collaboration Agreement, dated July 21, 2014, by and between Advaxis, Inc. and MedImmune, LLC. Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on September 9, 2014.

 10.12

 5th Amendment to the Amended & Restated License Agreement, dated July 25, 2014, by and between Advaxis, Inc. and University of Pennsylvania. Incorporated by reference to Exhibit 10.2 to Quarterly Report on Form 10-Q filed with the SEC on September 9, 2014.

 10.13

 Amendment No. 2 to the Advaxis, Inc. 2011 Omnibus Incentive Plan, effective July 9, 2014. Incorporated by reference to Annex A to Current Report on Schedule 14A filed with the SEC on May 20, 2014.

 10.14

 Amended and Restated 2011 Omnibus Incentive Plan, dated September 8, 2014. Incorporated by reference to Exhibit 10.4 to Quarterly Report on Form 10-Q filed with the SEC on September 9, 2014.

 10.15

 Master Services Agreement for Technical Transfer and Clinical Supply, dated February 5, 2014, by and between Advaxis, Inc. and SynCo Bio Partners B.V. Incorporated by reference to Exhibit 10.1 to Current Report to Form 8-K filed with the SEC on February 11, 2014.

 10.16

 Clinical Trial Collaboration and Supply Agreement by and between Advaxis, Inc. and Merck & Co. dated August 22, 2014. Incorporated by reference to Exhibit 10.101 to Annual Report on Form 10-K filed with the SEC on January 6, 2015

 10.17

 Co-Development and Commercialization Agreement between Advaxis, Inc. and Especificos Stendhal SA de CV dated February 3, 2016. Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed with the SEC on February 26, 2016.

 10.18

 2015 Incentive Plan of registrant. Incorporated by reference to Annex A to DEF 14A Proxy Statement filed with the SEC on April 7, 2015.

 10.19

 Amendment to the Advaxis, Inc. 2015 Incentive Plan. Incorporated by reference to Exhibit B to DEF 14A Proxy Statement filed with the SEC on February 11, 2016.

 10.20

 Amendment to the Advaxis, Inc. 2015 Incentive Plan. Incorporated by reference to Exhibit A to DEF 14A Proxy Statement filed with the SEC on February 10, 2017.

 10.21

 Amendment to the Advaxis, Inc. 2015 Incentive Plan. Incorporated by reference to Exhibit A to DEF 14A Proxy Statement filed with the SEC on March 20, 2020.

 10.22

 Lease Agreement, dated March 25, 2021, by and between Advaxis, Inc. and Princeton Corporate Plaza, LLC. Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on March 30, 2021.

 10.23

 Lease Termination and Surrender Agreement, dated March 26, 2021, by and between Advaxis, Inc. and 300 CR LLC. Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the SEC on March 30, 2021

 10.24

 Securities Purchase Agreement dated April 12, 2021, by and among Advaxis, Inc. and the purchasers identified on the signature pages thereto. Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on April 12, 2021.

 10.25

 Form of Investor Agreement. Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the SEC on April 12, 2021.

 10.26

 Amendment to the Advaxis, Inc. 2015 Incentive Plan, dated as of February 11, 2021. Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on June 4, 2021.

 10.27

 Employment Agreement between Advaxis, Inc. and Kenneth A. Berlin, dated April 23, 2018. Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on April 23, 2018.

 10.28

 Securities Purchase Agreement, dated as of February 19, 2021, by and among Ayala Pharmaceuticals, Inc. and the Investors identified on Exhibit A named therein. Incorporate by reference to Exhibit 10.1 of the Old Ayala, Inc. (f/k/a Ayala Pharmaceuticals, Inc.) Current Report on Form 8-K filed with the SEC on February 22, 2021 (File No. 001-39279).

 10.29

 Amendment No. 1 to the employment agreement between Advaxis, Inc. and Kenneth A. Berlin, dated September 12, 2022. Incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q filed with the SEC on September 12, 2022.

 10.30

 Registration Rights Agreement, dated November 17, 2023, by and among Ayala Pharmaceuticals, Inc., Israel Biotech Fund I, L.P., Israel Biotech Fund II, L.P., Arkin Bio Ventures L.P., Biotel Limited and Arkin Communication Ltd. Incorporated by reference to Exhibit 10.7 to the Quarterly Report on Form 10-Q filed with the SEC on November 20, 2023.

 14.1

 Code of Business Conduct and Ethics dated July 9, 2014. Incorporated by reference to Exhibit 14.1 to Current Report on Form 8-K filed with the SEC on July 10, 2014.

 31.1*

 Certification of Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002

 31.2*

 Certification of Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002

 32.1@

 Certification of Chief Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002

 32.2@

 Certification of Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002

 99.1

 Definitive Proxy Statement of Old Ayala (f/k/a Ayala Pharmaceuticals, Inc.). Incorporated by reference to the description of the business of Old Ayala set forth in pages 233-273 of the Definitive Proxy Statement of Old Ayala for the Special Meeting of Stockholders of Old Ayala held on January 13, 2023, filed with the SEC on December 12, 2022 (File No. 001-39279).

 101.INS**

 101.SCH**

 101.CAL**

 101.DEF**

 101.LAB**

 101.PRE**

 Cover

 *

 Filed
 herewith.

 **

 Furnished
 herewith.

 @

 Previously
 filed.

 Denotes
 management contract or compensatory plan or arrangement.

 +

 Certain
 schedules and exhibits to this agreement have been omitted in accordance with Item 601(a)(5) of Regulation S-K. A copy of any omitted
 schedule and/or exhibit will be furnished to the Securities and Exchange Commission on request.

 (1)

 Pursuant
 to Instruction 2 to Item 601 of Regulation S-K, the Company has filed a copy of one Common Stock Purchase Warrant (Convertible Note),
 and has set forth as follows the other documents omitted. The Company acknowledges that the Commission may at any time in its discretion
 require filing of copies of any documents so omitted.

 1.
 Common Stock Purchase Warrant (Convertible Note), dated March 1, 2024, issued by Ayala Pharmaceuticals, Inc. to Israel Biotech Fund
 II, L.P.

 2.
 Common Stock Purchase Warrant (Convertible Note), dated March 1, 2024, issued by Ayala Pharmaceuticals, Inc. to Arkin Bio Ventures
 L.P.

 3.
 Common Stock Purchase Warrant (Convertible Note), dated March 1, 2024, issued by Ayala Pharmaceuticals, Inc. to Biotel Limited.

 SIGNATURES

 Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report
to be signed on its behalf by the undersigned, thereunto duly authorized.

 Ayala
 Pharmaceuticals, Inc.

 Date:
 April 26, 2024

 By:

 /s/
 Kenneth Berlin.

 Kenneth
 Berlin

 President
 and Chief Executive Officer

 Date:
 April 26, 2024

 By:

 /s/
 Roy Golan.

 Roy
 Golan

 Chief
 Financial Officer