UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 WASHINGTON,
D.C. 20549

 FORM

 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

 Commission
file number 001-35813

 ORAMED
PHARMACEUTICALS INC.

 (Exact
Name of Registrant as Specified in its Charter)

 Delaware

 98-0376008

 (State or Other Jurisdiction of
 Incorporation or Organization)

 (I.R.S. Employer
 Identification No.)

 1185 Avenue of the Americas, Third Floor, New York, NY

 10036

 (Address of Principal Executive Offices)

 (Zip Code)

 844 - 967-2633
 (Registrant's Telephone Number, Including Area Code)

registered pursuant to Section 12(b) of the Act:

 Title of each class

 Trading symbol

 Name of each exchange on which registered

 Common Stock, par value $0.012

 ORMP

 Nasdaq Capital Market, Tel Aviv Stock Exchange

registered pursuant to Section 12(g) of the Act:

 None.

 (Title
of class)

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 Date 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 the definitions 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 Act).

 Yes
 No

 The
aggregate market value of the voting and non-voting common equity held by non-affiliates as of the last business day of the registrant's
most recently completed second fiscal quarter was $ 130,525,522 based on a price of $3.58, being the last price at which the shares of
the registrant's common stock were sold on the Nasdaq Capital Market prior to the end of the most recently completed second fiscal
quarter.

 As of March 6, 2024, the registrant had 40,519,160
shares of common stock issued and outstanding.

 TABLE
OF CONTENTS

 Introduction and Use of Certain Terms

 ii

 Cautionary Statement Regarding Forward-Looking Statements

 ii

 ITEM 1. BUSINESS

 ITEM 1A. RISK FACTORS

 ITEM IB. UNRESOLVED STAFF COMMENTS

 ITEM 1C. CYBERSECURITY

 ITEM 2. PROPERTIES

 ITEM 3. LEGAL PROCEEDINGS

 ITEM 4. MINE SAFETY DISCLOSURES

 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 ITEM 6. [RESERVED]

 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 ITEM 9A. CONTROLS AND PROCEDURES

 ITEM 9B. OTHER INFORMATION

 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

 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 ACCOUNTANT FEES AND SERVICES

 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 ITEM 16. FORM 10-K SUMMARY

 i

 INTRODUCTION
AND USE OF CERTAIN TERMS

 As
used in this Annual Report on Form 10-K, the terms "we," "us," "our," the "Company,"
and "Oramed" mean Oramed Pharmaceuticals Inc. and our wholly-owned subsidiaries, unless otherwise indicated. All dollar amounts
refer to U.S. dollars unless otherwise indicated.

 On
December 31, 2023, the exchange rate between the New Israeli Shekel, or NIS, and the dollar, as quoted by the Bank of Israel, was NIS
3.627 to $1.00. Unless indicated otherwise by the context, statements in this Annual Report on Form 10-K that provide the dollar equivalent
of NIS amounts or provide the NIS equivalent of dollar amounts are based on such exchange rate.

 CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 The
statements contained in this Annual Report on Form 10-K that are not historical facts are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and the Israeli securities law.
Words such as "expects," "anticipates," "intends," "plans," "planned expenditures,"
"believes," "seeks," "estimates" and similar expressions or variations of such words are intended
to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements
as denoted in this Annual Report on Form 10-K. Additionally, statements concerning future matters are forward-looking statements. We
remind readers that forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors
and involve known and unknown risks that could cause the actual results, performance, levels of activity, or our achievements, or industry
results, to be materially different from any future results, performance, levels of activity, or our achievements, or industry results,
expressed or implied by such forward-looking statements. Such forward-looking statements appear in "Item 1. Business" and
"Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," as well as elsewhere
in this Annual Report on Form 10-K and include, among other statements, statements regarding the following:

 our
 comprehensive analysis of data from our ORA-D-013-1 Phase 3 trial and plans to move forward
 with a protocol for a new Phase 3 clinical trial to be submitted to the U.S. Food and Drug
 Administration, or FDA;

 our
 plan to evaluate potential strategic opportunities;

 our
 ability to recover the proceeds and/or collateral under the Note (as defined herein) and
 related agreements from Scilex Holding Company, or Scilex;

 the
 fluctuating market price and liquidity and the common stock of Scilex underlying the warrants;

 the
 possibility that the anticipated benefits of the Transaction (as defined herein) are not
 realized when expected or at all, including as a result of the impact of, or problems arising
 from, the ability of Scilex to repay the Note and the ability of the Company to realize the
 value of the warrants;

 the
 ability of Oramed, Hefei Tianhui Biotech Co., Ltd.,
 or HTIT Biotech, and Technowl Limited to reach agreement and enter
 into additional agreements within a three-month period of the signing of the JV Agreement
 (as defined herein), and the ability of the parties to succeed in the goals set out for the
 joint venture;

 our
 exposure to potential litigation;

 our
 ability to enhance value for our stockholders;

 the
 expected development and potential benefits from our products;

 the
 prospects of entering into additional license agreements, or other partnerships or forms
 of cooperation with other companies or medical institutions;

 future
 milestones, conditions and royalties under our license agreements;

 the
 potential of the Oravax Medical Inc., or Oravax, vaccine to protect against the coronavirus,
 or COVID-19, pandemic;

 ii

 our
 research and development plans, including preclinical and clinical trials plans and the timing
 of enrollment, obtaining results and conclusion of trials;

 our
 belief that our technology has the potential to deliver medications and vaccines orally that
 today can only be delivered via injection;

 the
 competitive ability of our technology based on product efficacy, safety, patient convenience,
 reliability, value and patent position;

 the
 potential market demand for our products;

 our
 ability to obtain patent protection for our intellectual property;

 our
 expectation that our research and development expenses will continue to be our major expenditure;

 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; and

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

 Although
forward-looking statements in this Annual Report on Form 10-K reflect the good faith judgment of our management, such statements can
only be based on facts and factors known by us at the time of such statements. Consequently, forward-looking statements are inherently
subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or
anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include,
without limitation, those discussed herein, including those risks described in "Item 1A. Risk Factors," and expressed from
time to time in our other filings with the Securities and Exchange Commission, or SEC. In addition, historic results of scientific research,
clinical and preclinical trials do not guarantee that the conclusions of future research or trials would not suggest different conclusions.
Also, historic results referred to in this Annual Report on Form 10-K could be interpreted differently in light of additional research,
clinical and preclinical trials results. Readers are urged not to place undue reliance on these forward-looking statements, which speak
only as of the date of this Annual Report on Form 10-K. Except as required by law, we undertake no obligation to revise or update any
forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Annual Report on Form
10-K. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this Annual Report on
Form 10-K which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results
of operations and prospects.

 iii

 PART
I

 ITEM
1. BUSINESS.

 Description
of Business

 We
are a pharmaceutical company engaged in the research and development of innovative pharmaceutical solutions with a technology platform
that allows for the oral delivery of therapeutic proteins.

 We
have developed an oral dosage form intended to withstand the harsh environment of the stomach and effectively deliver active biological
insulin or other proteins. The excipients in the formulation are not intended to modify the proteins chemically or biologically, and
the dosage form is designed to be safe to ingest.

 On
January 11, 2023, we announced that the ORA-D-013-1 Phase 3 trial did not meet its primary or secondary endpoints. As a result, we terminated
this trial and a parallel Phase 3, ORA-D-013-2 clinical trial. In 2023, we completed an analysis of the data from the ORA-D-013-1 Phase
3 trial and found that subpopulations of patients with pooled specific parameters, such as body mass index, or BMI, baseline HbA1c and
age, responded well to oral insulin. Based on this analysis, we are working on a protocol for a new Phase 3 clinical trial to be submitted
to the FDA. We are additionally examining our existing pipeline and have commenced an evaluation process of potential strategic opportunities,
with the goal of enhancing value for our stockholders.

 Scilex
Transaction

 On
August 7, 2023, we entered into a Stock Purchase Agreement, as subsequently amended on August 9, 2023 and August 21, 2023, or the Sorrento
SPA, with Sorrento Therapeutics, Inc., or Sorrento, to acquire certain equity securities of Scilex owned by Sorrento, or the Purchased
Securities, for a purchase price of $105 million. Sorrento and its affiliated debtor, Scintilla Pharmaceuticals, Inc., or Scintilla and
together with Sorrento, the Debtors, are in Chapter 11 bankruptcy proceedings.

 On
August 9, 2023, we entered into a Senior Secured, Super-Priority Debtor-in-Possession Loan and Security Agreement, or the Senior DIP
Loan Agreement, with the Debtors in the principal amount of $100 million, which included a non-refundable closing fee of $450,000 paid
in full out of the proceeds. This amount was subsequently drawn in full by the Debtors and was intended to be used by us as a credit
for the consideration for the Purchased Securities, with an additional $5,000,000 in cash to be paid by us at closing. Thereafter, we
and Sorrento continued discussions and negotiations relating to the sale contemplated under the Sorrento SPA.

Purchase Agreement

 On
September 21, 2023, or the Closing Date, we entered into and consummated the transactions, or, collectively, the Transaction, contemplated
by a Securities Purchase Agreement, or the Scilex SPA, with Scilex and Acquiom Agency Services LLC. Pursuant to the Scilex SPA, in exchange
for Scilex assuming Sorrento's outstanding obligations under the Senior DIP Loan Agreement, or the DIP Assumption, and for the
ability to credit the amounts assumed under the DIP Assumption in exchange for certain equity securities of Scilex owned by Sorrento,
Scilex (i) issued to us (A) a Senior Secured Promissory Note due 18 months from the date of issuance in the principal amount of $101,875,000,
or the Note, which includes accrued and unpaid interest of $875,000 under the Senior DIP Loan Agreement and $1,000,000 of fees added
to the principal amount of the Note, (B) a warrant to purchase up to an aggregate of 4,500,000 shares of common stock of Scilex, par
value $0.0001 per share, or the Scilex Common Stock, and containing certain restrictions on exercisability, or the Closing Penny Warrant,
and (C) warrants to purchase up to an aggregate of 8,500,000 shares of Scilex Common Stock, or the Subsequent Penny Warrants, and, together
with the Closing Penny Warrant, the Penny Warrants, each with an exercise price of $0.01 per share and each with certain restrictions
on exercisability, and (ii) caused certain outstanding warrants to purchase up to an aggregate of 4,000,000 shares of Scilex Common Stock
with an exercise price of $11.50 per share to be transferred to us, or the Transferred Warrants and together with the Penny Warrants,
the Warrants. In addition, on the Closing Date, Scilex reimbursed $1,910,000 of the Company's Transaction expenses pursuant to
the Scilex SPA.

 Pursuant
to the terms of the Scilex SPA, Scilex agreed to certain restrictions on additional issuances of equity securities. In connection with
the Transaction, we and Sorrento mutually agreed to terminate the Sorrento SPA and to release all claims we and Sorrento may have against
one another, and Scilex completed the acquisition of the Purchased Securities.

 Senior
Secured Promissory Note

 The
Note matures on March 21, 2025 or upon an uncured event of default, subject to certain mandatory prepayments, and bears interest at a
rate per annum equal to Term SOFR (as defined in the Note) plus 8.5% (subject to a Term SOFR floor of 4.0%), to be paid in-kind, by being
capitalized and added to the principal amount of the Note on a monthly basis. The Scilex SPA provides for principal payments of (i) $5
million on December 21, 2023, (ii) $15 million on March 21, 2024, and (iii) $20 million on each of June 21, 2024, September 21, 2024,
and December 21, 2024, and for the entire remaining principal balance of the Note to be paid on March 21, 2025. If the Note is not repaid
in full on or prior to March 21, 2024, an exit fee equal to $3,056,250 shall be payable upon repayment of the Note in full.

 The
Note constitutes senior secured indebtedness of Scilex and is guaranteed by all existing or future formed, direct and indirect, domestic
subsidiaries of Scilex and is secured by a first priority security interest in and liens on all of the assets of Scilex, subject to customary
and mutually agreed permitted liens and except for certain specified exemptions.

 Mandatory
prepayments under the Note are required following the earlier of (a) April 1, 2024 and (b) the date upon which certain of Scilex's
outstanding indebtedness is repaid in full. Voluntary prepayments may be made at Scilex's discretion; provided that, if made prior
to the one-year anniversary of the Closing Date, Scilex will also be required to pay a customary 50% interest make-whole on the portion
of the Note so prepaid.

 The
Note includes customary events of default, upon which the Note will bear interest at a default rate of Term SOFR plus 15.0%, which shall
be payable in-kind, by being capitalized and added to the principal amount of the Note on a monthly basis. If the Note is accelerated
upon an event of default, Scilex is required to repay the principal amount of the Note at a mandatory default rate of 125% of such principal
amount (together with 100% of accrued and unpaid interest thereon and all other amounts due in respect of the Note).

 Until
the obligations under the Note are repaid in full, we have the right to designate one non-voting observer, to attend meetings of the
board of directors and committees of Scilex and its subsidiaries. Currently, David Silberman, our Chief Financial Officer, is the observer.

 Pursuant
to the terms of the Scilex SPA, we received the first principal payment of $5 million on December 21, 2023. The next principal payment
in the amount of $15 million is expected to be paid on March 21, 2024.

 Warrants

 The
Closing Penny Warrant will be exercisable upon the earliest of (i) March 14, 2025, (ii) the date on which the Note has been repaid in
full and (iii) the Management Sale Trigger Date (as defined therein), if any, and will expire on the date that is the fifth anniversary
of the issuance date. For purposes of the Closing Penny Warrant (as well as the Subsequent Penny Warrants), the Management Sale Trigger
Date is generally the first date that either Dr. Henry Ji, Scilex's Executive Chairperson, or Mr. Jaisim Shah, Scilex's Chief
Executive Officer and President and a member of Scilex's Board of Directors, engages in certain sales or other similar transfers
of shares of Scilex Common Stock or other of Scilex's or any of its subsidiaries' securities, subject to certain exceptions
as are customary for lock-up agreements executed by directors and officers in connection with financings or similar transactions. The
exercise price of the Closing Penny Warrant is $0.01 per share, subject to adjustment.

 We
were issued four Subsequent Penny Warrants, each for 2,125,000 shares of Scilex Common Stock, which shall vest and become exercisable
on the date that is the later of (i) March 19, 2024, June 17, 2024, September 15, 2024 or December 14, 2024, respectively, or the Subsequent
Penny Warrant Vesting Date, and (ii) the earliest of (A) March 14, 2025, (B) the date on which the Note has been repaid in full and (C)
the Management Sale Trigger Date (as defined therein), if any. Each Subsequent Penny Warrant will expire on the date that is the fifth
anniversary of the issuance date; provided that, if the Note is repaid in full prior to the Subsequent Penny Warrant Vesting Date applicable
to such Subsequent Penny Warrant, such Subsequent Penny Warrant will expire on the date the Note is repaid in full. We may exercise the
Penny Warrants by means of a "cashless exercise."

 The
Penny Warrants may not be exercised if we, together with our affiliates, would beneficially own in excess of 9.9% of the number of shares
of Scilex Common Stock outstanding immediately after giving effect to such exercise; provided, that we may increase or decrease such
limitation upon 61 days' prior notice to Scilex.

 The
Transferred Warrants are listed on the Nasdaq Capital Market, or Nasdaq, have an exercise price of $11.50 per share, are fully exercisable,
and expire on November 10, 2027.

 Registration
Rights Agreement

 In
connection with the Scilex SPA, on September 21, 2023, we entered into a registration rights agreement with Scilex, pursuant to which
Scilex granted us certain registration rights applicable to the resale of the shares underlying the Warrants and agreed to pay liquidated
damages equal to the product of 2.0% multiplied by the sum of (x) the aggregate principal amount outstanding under the Note and (y) the
aggregate Exercise Price (as defined in the Closing Penny Warrant) of the Closing (capped at 12%) of the aggregate subscription amount.

 Research
and Development

 Oral
Insulin

 Type
2 Diabetes: We conducted the ORA-D-013-1 Phase 3 trial on patients with type 2 diabetes, or T2D, with inadequate glycaemic control
who were on two or three oral glucose-lowering agents. The primary endpoint of the trial was to evaluate the efficacy of our oral insulin
capsule, ORMD-0801, compared to placebo in improving glycaemic control as assessed by HbA1c, with a secondary efficacy endpoint of assessing
the change from baseline in fasting plasma glucose at 26 weeks. On January 11, 2023, we announced that the ORA-D-013-1 Phase 3 trial
did not meet its primary or secondary endpoints. Following the results of the ORA-D-013-1 Phase 3 trial, we also terminated the ORA-D-013-2
Phase 3 trial, a second Phase 3 trial that included T2D patients with inadequate glycaemic control who were attempting to manage their
condition with either diet alone or with diet and metformin. In 2023, we completed an analysis of the data from the ORA-D-013-1 Phase
3 trial and found that subpopulations of patients with pooled specific parameters, such as BMI, baseline HbA1c and age, responded well
to oral insulin. These subsets exhibited an over 1% placebo adjusted, statistically significant, reduction in HbA1c. Based on this analysis,
we are working on a protocol for a new Phase 3 clinical trial to be submitted to the FDA.

 Joint
Venture Agreement: On January 22, 2024, Oramed and its wholly-owned subsidiary, Oramed Ltd., entered into a Joint Venture Agreement,
or the JV Agreement, with HTIT Biotech and Technowl Limited, a wholly-owned indirect subsidiary of HTIT Biotech, or HTIT Sub, and together
with HTIT Biotech, HTIT, pursuant to which, subject to the terms and conditions set forth in the JV Agreement, the parties will establish
a joint venture, or the JV, based on Oramed's oral drug delivery technology.

 The
JV will focus on the development and worldwide commercialization of innovative products based on Oramed's oral insulin and POD
(Protein Oral Delivery) pipeline and HTIT's manufacturing capabilities and technologies. The parties intend for the JV to use the
protocol we are currently working on to initiate a Phase 3 oral insulin trial in the United States.

 Oramed
and HTIT will initially hold equal shares in the JV, with each owning 50% of the equity. The board of directors will initially consist
of equal representation from HTIT and Oramed. HTIT will contribute to the JV $70 million in cash, while Oramed will contribute $20 million
(comprised of $10 million in cash and $10 million in shares of Oramed common stock that will be subject to certain registration rights)
and will transfer intellectual property related to its oral insulin and POD technology, as well as other assets in the Oramed
pipeline. HTIT will have an option to invest additional funds into the JV up to an aggregate amount of $20 million, thereby increasing
its equity holdings and board representation. Oramed will be entitled to receive a 3% royalty on gross revenues of the JV generated from
Oramed related assets.

 The
consummation of the JV Agreement is subject to and contingent upon the parties entering into additional agreements within a three-month
period, including an asset transfer agreement for the transfer of Oramed's intellectual property to the JV, a commercial supply
agreement for the manufacture and supply of products by HTIT to the JV, as well as other documents and agreements to regulate the relationship
of the parties and the JV to be formed pursuant to the JV Agreement. There is no assurance that the parties will complete and sign these
additional agreements within the agreed timeline or at all. If such agreements are not signed within the agreed timeframe, then either
party may apply a 30-day extension, after which the JV Agreement may be terminated and voided by either party. Thereafter, the consummation
of the JV transaction is further subject to the satisfaction or waiver of certain other closing conditions within a three-month period
following the completion of the aforesaid ancillary agreements. If the closing conditions are not met within the agreed timeframe, then
either party may apply a 30-day extension, after which the JV Agreement may be terminated and voided by either party. In addition, completion
of the transactions contemplated under the JV Agreement is subject to the satisfaction or waiver of customary and certain other closing
conditions.

 NASH:
On September 13, 2022, we reported positive top line results from a double blind, placebo controlled clinical trial of ORMD-0801 for
the treatment of non-alcoholic steatohepatitis, or NASH, in T2D, demonstrating that ORMD-0801 was safe and well tolerated at 8 mg twice
daily dosing, meeting the primary endpoint of no difference in adverse events for ORMD-0801 compared to placebo. The trial also evaluated
the effectiveness of ORMD-0801 in reducing liver fat content over the 12-week treatment period by observing several independent measures.
All the measurements showed a consistent clinically meaningful trend in favor of ORMD-0801. We are currently evaluating our path forward
for ORMD-0801 for NASH.

 Oral
Vaccine

 On
March 18, 2021, we entered into a license agreement, or the Oravax License Agreement, with Oravax, a 63% owned joint venture to commercialize
oral vaccines for COVID-19 and other novel coronaviruses based on Premas Biotech Pvt. Ltd.'s proprietary vaccine technology involving
a triple antigen virus like particle, or the Oravax product.

 In
October 2022, Oravax reported positive preliminary Phase 1 data for Cohort A of a Phase 1 clinical trial, meeting primary or secondary
endpoints of safety and immunogenicity. These results included significant antibody response (2-6 fold over baseline) as measured by
multiple markers of immune response to virus like particle vaccine antigens observed in the majority of the patients dosed, and no safety
issues were observed, including mild symptoms. Cohort B completed dosing in January 2023. Cohort B measured Immunoglobulin G, or IGG,
against the spike (S) protein, showing positive IGG in approximately 55% of the patients dosed. We are currently evaluating our path
forward for Oravax's oral vaccines for COVID-19.

 PeriTech
Acquisition and License

 In
December 2023, we executed and completed an agreement with PeriTech Pharma Ltd., or PeriTech, acquiring the rights to their film-forming
technology tailored for the delivery of topical/dermatology agents. This includes a once-daily over-the-counter treatment for hemorrhoids.
The PeriTech pipeline extends its potential applications to include indications such as pruritus ani, anal warts, anal fissures and herpes
labialis.

 We
have entered into an exclusive licensing agreement with Genomma Lab Internacional S.A.B. de C.V, or Genomma Labs, pursuant to which we
granted Genomma Labs the development and commercialization rights to the PeriTech pipeline, in exchange for a royalty based on net sales.

 Impact
of Current Events

 On
October 7, 2023, the State of Israel was attacked by and subsequently declared war on Hamas. Israel has been in an ongoing
state of war with Hamas since that time. Following the attack by Hamas, Hezbollah has also launched attacks against Israel and Israel
has been responding to these attacks with targeted air strikes. It is possible that other terrorist organizations, including Palestinian
military organizations in the West Bank, as well as other hostile countries, such as Iran, will join the hostilities. As of March 6,
2024, we believe that there is no immediate risk to our business operations related to these events. For further information, see "Item
1A. Risk Factors," under "We are affected by the political, economic and military risks of having operations in Israel."

 Raw
Materials

 Our
oral insulin capsule for clinical trials was manufactured by Fidelio Healthcare, a diversified European Contract Development and Manufacturing
Organization (CDMO) in the pharmaceutical and healthcare industries.

 In
July 2010, Oramed Ltd. entered into the Manufacturing and Supply Agreement with Sanofi-Aventis Deutschland GMBH, or Sanofi-Aventis. According
to the agreement, Sanofi-Aventis supplies Oramed Ltd. with specified quantities of recombinant human insulin to be used for clinical
trials.

 We
have purchased, pursuant to separate agreements with third parties, the raw materials required for the manufacturing of our oral capsule.
We generally depend upon a limited number of suppliers for the raw materials. Although alternative sources of supply for these materials
are generally available, we could incur significant costs and disruptions if we need to change suppliers. The termination of our relationships
with our suppliers or the failure of these suppliers to meet our requirements for raw materials on a timely and cost-effective basis
could have a material adverse effect on our business, prospects, financial condition and results of operations.

 Market
Overview

 Diabetes
is a disease in which the body does not produce or properly use insulin. Insulin is a hormone that causes sugar to be absorbed into cells,
where the sugar is converted into energy needed for daily life. The cause of diabetes is attributed both to genetics (type 1 diabetes,
or T1D) and, most often, to environmental factors such as obesity and lack of exercise (T2D). According to the International Diabetes
Federation, or IDF, an estimated 537 million adults (20-79 years) worldwide suffered from diabetes in 2021 and the IDF projects this
number will increase to 783 million by 2045. Also, according to the IDF, in 2021, an estimated 6.7 million people died from diabetes.
According to the American Diabetes Association, or ADA, in the United States there were approximately 37.3 million people with diabetes,
or 11.3% of the United States population in 2019. Diabetes is a leading cause of blindness, kidney failure, heart attack, stroke and
amputation.

 Intellectual
Property and Patents

 We
own a portfolio of patents and patent applications covering our technologies, and we are aggressively protecting these technology developments
on a worldwide basis.

 We
maintain a proactive intellectual property strategy, which includes patent filings in multiple jurisdictions, including the United States
and other commercially significant markets. We hold 38 patent applications currently pending, with respect to various compositions, methods
of production and oral administration of proteins and exenatide. Expiration dates for pending patents, if granted, will fall between
2026 and 2039.

 We
hold 117 patents, eight of which were issued during the fiscal year ended December 31, 2023, including patents issued by the United States,
Swiss, German, French, U.K., Italian, Netherlands, Swedish, Spanish, Australian, Israeli, Japanese, New Zealand, South African, Russian,
Canadian, Hong Kong, Chinese, European and Indian patent offices that cover a part of our technology, which allows for the oral delivery
of proteins; patents issued by the Australian, Canadian, European, Austrian, Belgian, French, German, Irish, Italian, Luxembourg, Monaco,
Netherlands, Norwegian, Spanish, Swedish, Swiss, U.K., Israeli, New Zealand, South African, Russian, Brazilian and Japanese patent offices
that cover part of our technology for the oral delivery of exenatide; and patents issued by the European, Austrian, Belgian, Denmark,
French, German, Irish, Italian, Luxembourg, Monaco, Netherlands, Norway, Spanish, Swedish, Swiss, U.K. and Japanese patent offices for
treating diabetes.

 Consistent
with our strategy to seek protection in key markets worldwide, we have been and will continue to pursue the patent applications and corresponding
foreign counterparts of such applications. We believe that our success will depend on our ability to obtain patent protection for our
intellectual property.

 Our
patent strategy is as follows:

 Aggressively
 protect all current and future technological developments to assure strong and broad protection
 by filing patents and/or continuations in part as appropriate,

 Protect
 technological developments at various levels, in a complementary manner, including the base
 technology, as well as specific applications of the technology, and

 Establish
 comprehensive coverage in the United States and in all relevant foreign markets in anticipation
 of future commercialization opportunities.

 Trademarks
and Trade Secrets

 We
have trademark applications pending in Israel, with Corresponding international trademark applications in Australia, Brazil, Canada,
China, Colombia, the European Union, India, Indonesia, Japan, Kazakhstan, Korea, Malaysia, Mexico, New Zealand, Norway, Oman, Philippines,
Russia, Singapore, Switzerland, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, U.S.A., Uzbekistan and Vietnam.

 We
also rely on trade secrets and unpatentable know-how that we seek to protect, in part, by confidentiality agreements. Our policy is to
require our employees, consultants, contractors, manufacturers, outside scientific collaborators and sponsored researchers, Board of
Directors, or our Board, technical review board and other advisors, to execute confidentiality agreements upon the commencement of employment
or consulting relationships with us. These agreements provide that all confidential information developed or made known to the individual
during the course of the individual's relationship with us is to be kept confidential and not disclosed to third parties except
in specific limited circumstances. We also require signed confidentiality or material transfer agreements from any company that is to
receive our confidential information. In the case of employees, consultants and contractors, the agreements provide that all inventions
conceived by the individual while rendering services to us shall be assigned to us as the exclusive property of the Company. There can
be no assurance, however, that all persons who we desire to sign such agreements will sign, or if they do, that these agreements will
not be breached, that we would have adequate remedies for any breach, or that our trade secrets or unpatentable know-how will not otherwise
become known or be independently developed by competitors.

 Out-Licensed
Technology

 Entera
Bio

 In
June 2010, our wholly-owned subsidiary, Oramed Ltd., entered into a joint venture agreement with DNA GROUP (T.R.) Ltd. (formerly D.N.A
Biomedical Solutions Ltd.), or DNA, for the establishment of Entera Bio Ltd., or Entera.

 In
March 2011, Oramed Ltd. sold shares of Entera to DNA, retaining 117,000 ordinary shares (after giving effect to a stock split by Entera
in July 2018). In consideration for the shares sold to DNA, the Company received, among other payments, ordinary shares of DNA (see also
note 3 to our audited consolidated financial statements).

 As
part of this agreement, Oramed Ltd. entered into a patent transfer agreement, or the Patent Transfer Agreement, according to which Oramed
Ltd. assigned to Entera all of its rights to a patent application related to the oral administration of proteins that it has licensed
to Entera since August 2010, in return for royalties of 3% of Entera's net revenues and a license back of that patent application
for use in respect of diabetes and influenza. As of December 31, 2023, Entera had not paid any royalties to Oramed Ltd. On December 11,
2018, Entera announced that it had entered into a research collaboration and license agreement with Amgen, Inc., or Amgen. To the extent
that the license granted to Amgen results in net revenues as defined in the Patent Transfer Agreement, Oramed Ltd. will be entitled to
the aforementioned royalties. During the years ended December 31, 2023 and 2022, we did not sell any of DNA's ordinary shares.
As of December 31, 2023, we held approximately 1.4% of DNA's outstanding ordinary shares and approximately 0.4% of Entera's
outstanding ordinary shares.

 HTIT

 On
November 30, 2015, we entered into a Technology License Agreement, or TLA, with HTIT and on December 21, 2015, these parties entered
into an Amended and Restated Technology License Agreement that was further amended by the parties on June 3, 2016 and July 24, 2016,
or the HTIT License Agreement. According to the HTIT License Agreement, we granted HTIT an exclusive commercialization license in the
territory of the People's Republic of China, Macau and Hong Kong, related to our oral insulin capsule, ORMD-0801, or the Product.
Pursuant to the HTIT License Agreement, HTIT will conduct, at its own expense, certain pre-commercialization and regulatory activities
with respect to our technology and ORMD-0801 capsule, and will pay (i) royalties of 10% on net sales of the related commercialized products
to be sold by HTIT in the territory, or Royalties, and (ii) an aggregate of $37.5 million, of which $3 million was payable immediately,
$8 million will be paid subject to our entry into certain agreements with certain third parties, and $26.5 million will be payable upon
achievement of certain milestones and conditions. In the event that we will not meet certain conditions, the Royalties rate may be reduced
to a minimum of 8%. Following the final expiration of our patents covering the technology in the territory in 2033, the Royalties rate
may be reduced, under certain circumstances, to 5%. The royalty payment obligation shall apply during the period of time beginning upon
the first commercial sale of the Product in the territory, and ending upon the later of (i) the expiration of the last-to-expire licensed
patents in the territory; and (ii) 15 years after the first commercial sale of the Product in the territory. The HTIT License Agreement
shall remain in effect until the expiration of the royalty term. The HTIT License Agreement contains customary termination provisions.
Through December 31, 2023, we received aggregate milestone payments of $20.5 million out of the aggregate amount of $37.5 million.

 On
August 21, 2020, we received a letter from HTIT, disputing certain pending payment obligations of HTIT under the TLA. We wholly disputed
said claims and are planning to resolve any such claims as part of our discussions with HTIT.

 See
"—Research and Development" above regarding the JV Agreement we signed with HTIT to establish the JV, based on Oramed's
oral drug delivery technology. The proposed JV will focus on the development and worldwide commercialization of innovative products based
on Oramed's oral insulin and POD (Protein Oral Delivery) pipeline and HTIT's manufacturing capabilities and technologies.

 Oravax
License

 In
consideration for the grant of the license under the Oravax License Agreement, we will receive (i) royalties equal to 7.5% on net sales,
as defined in the Oravax License Agreement, of each product commercialized by Oravax, its affiliates and permitted sublicensees related
to the license during the term specified in the Oravax License Agreement, (ii) sublicensing fees equal to 15% of any non-sales-based
consideration received by Oravax from a permitted sublicensee and (iii) other payments ranging between $25 million to $100 million, based
on certain sales milestones being achieved by Oravax. The parties further agreed to establish a development and steering committee, which
will consist of three members, of which two members will be appointed by us, that will oversee the ongoing research, development, clinical
and regulatory activity with respect to the Oravax product. In addition, we agreed to buy and Oravax agreed to issue to us 1,890,000
shares of common stock of Oravax, representing 63% of the common stock of Oravax for the aggregate amount of $1.5 million. Akers Biosciences
Inc. contributed $1.5 million in cash to Oravax and a license agreement to the Oravax product.

 Medicox
License

 On
November 13, 2022, we entered into a distribution license agreement with Medicox Co., Ltd., or Medicox, an emerging biotech company with
a consortium of proven partnerships in the Republic of Korea. The agreement grants Medicox the exclusive license to apply for regulatory
approval and distribute ORMD-0801 for ten years in the Republic of Korea. Medicox will comply with agreed distribution targets and will
purchase ORMD-0801 at an agreed upon transfer price per capsule. In addition, Medicox will pay Oramed up to $15 million in developmental
milestones, $2 million of which were received by Oramed in 2022, and up to 15% royalties on gross sales. Medicox will also be responsible
for gaining regulatory approval in the Republic of Korea.

 Government
Regulation

 The
Drug Development Process

 Regulatory
requirements for the approval of new drugs vary from one country to another. In order to obtain approval to market our drug portfolio,
we need to go through a different regulatory process in each country in which we apply for such approval. In some cases, information
gathered during the approval process in one country can be used as supporting information for the approval process in another country.
As a strategic decision, we decided to first explore the FDA regulatory pathway. The following is a summary of the FDA's requirements.

 The
FDA requires that pharmaceutical and certain other therapeutic products undergo significant clinical experimentation and clinical testing
prior to their marketing or introduction to the general public. Clinical testing, known as clinical trials or clinical studies, is either
conducted internally by life science, pharmaceutical or biotechnology companies or is conducted on behalf of these companies by CROs.

 The
process of conducting clinical trials is highly regulated by the FDA, as well as by other governmental and professional bodies. Below
we describe the principal framework in which clinical trials are conducted, as well as describe a number of the parties involved in these
trials.

 Protocols.
Before commencing human clinical trials, the sponsor of a new drug or therapeutic product must submit an IND application to the FDA.
The application contains, among other documents, what is known in the industry as a protocol. A protocol is the blueprint for each drug
study. The protocol sets forth, among other things, the following:

 Who
 must be recruited as qualified participants,

 How
 often to administer the drug or product,

 What
 tests to perform on the participants, and

 What
 dosage of the drug or amount of the product to give to the participants.

 Institutional
Review Board. An institutional review board is an independent committee of professionals and lay persons which reviews clinical research
trials involving human beings and is required to adhere to guidelines issued by the FDA. The institutional review board does not report
to the FDA, but its records are audited by the FDA. Its members are not appointed by the FDA. All clinical trials must be approved by
an institutional review board. The institutional review board's role is to protect the rights of the participants in the clinical
trials. It approves the protocols to be used, the advertisements which the company or CRO conducting the study proposes to use to recruit
participants, and the form of consent which the participants will be required to sign prior to their participation in the clinical trials.

 Clinical
Trials. Human clinical trials or testing of a potential product are generally done in three stages known as Phase 1 through Phase
3 testing. The names of the phases are derived from the regulations of the FDA. Generally, there are multiple trials conducted in each
phase.

 Phase
1. Phase 1 trials involve testing a drug or product on a limited number of healthy or patient participants, typically 24 to 100 people
at a time. Phase 1 trials determine a product's basic safety and how the product is absorbed by, and eliminated from, the body.
This phase lasts an average of six months to a year.

 Phase
2. Phase 2 trials involve testing of no more than 300 participants at a time who may suffer from the targeted disease or condition.
Phase 2 testing typically lasts an average of one to two years. In Phase 2, the drug is tested to determine its safety and effectiveness
for treating a specific illness or condition. Phase 2 testing also involves determining acceptable dosage levels of the drug. Phase 2
trials may be split into Phase 2a and Phase 2b sub-trials. Phase 2a trials may be conducted with patient volunteers and are exploratory
(non-pivotal) trials, typically designed to evaluate clinical efficacy or biological activity. Phase 2b trials are conducted with patients
defined to evaluate definite dose range and evaluate efficacy. If Phase 2 trials show that a new drug has an acceptable range of safety
risks and probable effectiveness, a company will generally continue to review the substance in Phase 3 trials.

 Phase
3. Phase 3 trials involve testing large numbers of participants, typically several hundred to several thousand persons. The purpose
is to verify effectiveness and long-term safety on a large scale. These trials generally last two to three years. Phase 3 trials are
conducted at multiple locations or sites. Like the other phases, Phase 3 requires the site to keep detailed records of data collected
and procedures performed.

 Biological
License Application. The results of the clinical trials for a biological product are submitted to the FDA as part of a Biological
License Application, or BLA. Following the completion of Phase 3 trials, assuming the sponsor of a potential product in the United States
believes it has sufficient information to support the safety and effectiveness of its product, the sponsor will generally submit a BLA
to the FDA requesting that the product be approved for marketing. The application is a comprehensive, multi-volume filing that includes
the results of all clinical trials, information about the drug's composition, and the sponsor's plans for producing, packaging
and labeling the product. The FDA's review of an application can take a few months to many years, with the average review lasting
18 months. Once approved, drugs and other products may be marketed in the United States, subject to any conditions imposed by the FDA.
Approval of a BLA provides 12 years of exclusivity in the U.S. market.

 Phase
4. The FDA may require that the sponsor conduct additional clinical trials following new drug approval. The purpose of these trials,
known as Phase 4 trials, is to monitor long-term risks and benefits, study different dosage levels or evaluate safety and effectiveness.
In recent years, the FDA has increased its reliance on these trials. Phase 4 trials usually involve thousands of participants. Phase
4 trials also may be initiated by the company sponsoring the new drug to gain broader market value for an approved drug.

 European
Regulation. Similar to the U.S., a European sponsor of a biological product may submit a Marketing Approval Application to the European
Medicines Agency, or EMA, for the registration of the product. The approval process in Europe consists of several stages, which together
are summed up to 210 days from the time of submission of the application (net, without periods in which the sponsor provides answers
to questions raised by the agency) following which, a Marketing Approval may be granted. During the approval process, the sponsor's
manufacturing facilities will be audited in order to assess Good Manufacturing Practice compliance.

 The
drug approval process is time-consuming, involves substantial expenditures of resources, and depends upon a number of factors, including
the severity of the illness in question, the availability of alternative treatments, and the risks and benefits demonstrated in the clinical
trials.

 Other
Regulations

 Various
federal, state and local laws, regulations, and recommendations relating to safe working conditions, laboratory practices, the experimental
use of animals, the environment and the purchase, storage, movement, import, export, use, and disposal of hazardous or potentially hazardous
substances, including radioactive compounds and infectious disease agents, used in connection with our research are applicable to our
activities. They include, among others, the U.S. Atomic Energy Act, the Clean Air Act, the Clean Water Act, the Occupational Safety and
Health Act, the National Environmental Policy Act, the Toxic Substances Control Act, and Resources Conservation and Recovery Act, national
restrictions on technology transfer, import, export, and customs regulations, and other present and possible future local, state, or
federal regulation. The compliance with these and other laws, regulations and recommendations can be time-consuming and involve substantial
costs. In addition, the extent of governmental regulation which might result from future legislation or administrative action cannot
be accurately predicted and may have a material adverse effect on our business, financial condition, results of operations and prospects.

 Competition

 Competition
in the area of biomedical and pharmaceutical research and development is intense and significantly depends on scientific and technological
factors. These factors include the availability of patent and other protection for technology and products, the ability to commercialize
technological developments and the ability to obtain regulatory approval for testing, manufacturing and marketing. Our competitors include
major pharmaceutical, medical products, chemical and specialized biotechnology companies, many of which have financial, technical and
marketing resources significantly greater than ours. In addition, many biotechnology companies have formed collaborations with large,
established companies to support research, development and commercialization of products that may be competitive with ours. Academic
institutions, governmental agencies and other public and private research organizations are also conducting research activities and seeking
patent protection and may commercialize products on their own or through joint ventures. We are aware of certain other products manufactured
or under development by competitors that are used for the treatment of the diseases and health conditions that we have targeted for product
development. We can provide no assurance that developments by others will not render our technology obsolete or noncompetitive, that
we will be able to keep pace with new technological developments or that our technology will be able to supplant established products
and methodologies in the therapeutic areas that are targeted by us. The foregoing factors could have a material adverse effect on our
business, prospects, financial condition and results of operations. These companies, as well as academic institutions, governmental agencies
and private research organizations, also compete with us in recruiting and retaining highly qualified scientific personnel and consultants.

 Competition
within our sector is increasing, so we will encounter competition from existing firms that offer competitive solutions in diabetes treatment
solutions. These competitive companies could develop products that are superior to, or have greater market acceptance, than the products
being developed by us. We will have to compete against other biotechnology and pharmaceutical companies with greater market recognition
and greater financial, marketing and other resources.

 Our
competition will be determined in part by the potential indications for which our technology is developed and ultimately approved by
regulatory authorities. In addition, the first product to reach the market in a therapeutic or preventive area is often at a significant
competitive advantage relative to later entrants to the market. Accordingly, the relative speed with which we, or our potential corporate
partners, can develop products, complete the clinical trials and approval processes and supply commercial quantities of the products
to the market are expected to be important competitive factors. Our competitive position will also depend on our ability to attract and
retain qualified scientific and other personnel, develop effective proprietary products, develop and implement production and marketing
plans, obtain and maintain patent protection and secure adequate capital resources. We expect our technology, if approved for sale, to
compete primarily on the basis of product efficacy, safety, patient convenience, reliability, value and patent position.

 We
anticipated that our oral insulin capsule would be a competitive diabetes drug because of its anticipated efficacy and safety profile;
however, there are other treatment options for T1D and T2D patients, such as insulin injections, insulin pumps or a combination of diet,
exercise and oral medication which improve the body's response to insulin or cause the body to produce more insulin.

 Scientific
Advisory Board

 We
maintain a Scientific Advisory Board consisting of internationally recognized scientists who advise us on scientific and technical aspects
of our business. The Scientific Advisory Board meets periodically to review specific projects and to assess the value of new technologies
and developments to us. In addition, individual members of the Scientific Advisory Board meet with us periodically to provide advice
in their particular areas of expertise. The Scientific Advisory Board consists of the following members, information with respect to
whom is set forth below: Dr. Roy Eldor, Professor Ele Ferrannini, Dr. Alexander Fleming, Professor Avram Hershko, Dr. Harold Jacob, Dr.
Julio Rosenstock, Dr. Jay Skyler and Dr. Anne Peters.

 Dr.
Roy Eldor, MD, PhD, joined the Oramed Scientific Advisory Board in July 2016. He is an endocrinologist, internist and
researcher with over twenty years of clinical and scientific experience. He is currently Director of the Diabetes Unit at the Institute
of Endocrinology, Metabolism & Hypertension at the Tel-Aviv Sourasky Medical Center. Prior to that, Dr. Eldor served as Principal
Scientist at Merck Research Laboratories, Clinical Research – Diabetes & Endocrinology. He previously served as a senior physician
in internal medicine at the Diabetes Unit in Hadassah Hebrew University Hospital in Jerusalem, Israel; and the Diabetes Division at the
University of Texas Health Science Center in San Antonio, Texas. Dr. Eldor is a recognized expert, with over 50 peer reviewed papers
and book chapters, and has been a guest speaker at numerous international forums.

 Professor
Ele Ferrannini, MD, joined the Oramed Scientific Advisory Board in February 2007. He is a past President to the European
Association for the Study of Diabetes (EASD), which supports scientists, physicians and students from all over the world who are interested
in diabetes and related subjects in Europe and performs functions similar to that of the American Diabetes Association in the United
States. Professor Ferrannini has worked with various institutions including the Department of Clinical & Experimental Medicine at
the University of Pisa School of Medicine, and CNR (National Research Council) Institute of Clinical Physiology in Pisa, Italy; and the
Diabetes Division, Department of Medicine at the University of Texas Health Science Center in San Antonio, Texas. He has extensive training
in internal medicine and endocrinology, and has specialized in diabetes trials. Professor Ferrannini has received a Certificate of the
Educational Council for Foreign Medical Graduates from the University of Bologna, and completed a subspecialty in Diabetes and Metabolic
Diseases at the University of Torino, cum laude. He has published over 500 original papers and 50 book chapters and he is a "highly
cited researcher," according to the Institute for Scientific Information.

 Dr.
Alexander Fleming, MD, joined the Oramed Scientific Advisory Board in December 2019. Dr. Fleming, an endocrinologist, is Founder
and Executive Chairman of Kinexum, a strategic advisory firm. From 1986 to 1998, he served at the FDA as a supervisory medical officer
in the Division of Metabolism and Endocrine Drug Products and was responsible for landmark approvals of the first statin, metformin,
and other endocrine and metabolic therapies. He also represented the FDA at the World Health Organization and on multiple expert working
groups of the International Conference on Harmonization (ICH). Dr. Fleming coined the term, Metabesity, which refers to the constellation
of major chronic diseases and the aging process itself, all which share common metabolic root causes and potential preventive therapies.
He organized the first Congress on Metabesity in London in October 2017, followed by annual conferences. In 2020, Dr. Fleming founded
the non-profit Kitalys Institute as a means of producing Metabesity conferences and advancing interventions of any kind that can improve
health and healthspan.

 Professor
Avram Hershko, MD, PhD, joined the Oramed Scientific Advisory Board in July 2008. Professor Hershko served as a physician in
the Israel Defense Forces from 1965 to 1967. After a post-doctoral fellowship with Gordon Tomkins at the University of San Francisco
from 1969 to 1972, he joined the faculty of the Haifa Technion becoming a professor in 1980. He is now Distinguished Professor in the
Unit of Biochemistry in the B. Rappaport Faculty of Medicine of the Technion in Haifa, Israel. Professor Hershko's main research
interests concern the mechanisms by which cellular proteins are degraded, a formerly neglected field of study. Professor Hershko and
his colleagues showed that cellular proteins are degraded by a highly selective proteolytic system. This system tags proteins for destruction
by linkage to a protein called ubiquitin, which had previously been identified in many tissues, but whose function was previously unknown.
Subsequent work by Professor Hershko and many other laboratories has shown that the ubiquitin system has a vital role in controlling
a wide range of cellular processes, such as the regulation of cell division, signal transduction and DNA repair. Professor Hershko was
awarded the Nobel Prize in Chemistry in 2004, jointly with his former PhD student Aaron Ciechanover and their colleague Irwin Rose. His
many honors include the Israel Prize for Biochemistry (1994), the Gairdner Award (1999), the Lasker Prize for Basic Medical Research
(2000), the Wolf Prize for Medicine (2001) and the Louisa Gross Horwitz Award (2001). Professor Hershko is a member of the Israel Academy
of Sciences since 2000 and a Foreign Associate of the U.S. Academy of Sciences since 2003.

 Dr.
Harold Jacob, MD, joined the Oramed Scientific Advisory Board in November 2016. Since 1998, Dr. Jacob has served as the president
of Medical Instrument Development Inc., a company which provides a range of support and consulting services to start-up and early stage
companies as well as patenting its own proprietary medical devices. Since 2011, Dr. Jacob has also served as an attending physician at
Hadassah University Medical Center in Jerusalem, Israel, where he has served as the director of the gastrointestinal endoscopy unit since
September 2013. Dr. Jacob has advised a spectrum of companies in the past and he served as a consultant and then as the Director of Medical
Affairs at Given Imaging Ltd., from 1997 to 2003, a company that developed the first swallowable wireless pill camera for inspection
of the intestine. He has licensed patents to a number of companies including Kimberly-Clark Corporation. Since 2014, Dr. Jacob has served
as the Chief Medical Officer and a director of NanoVibronix, Inc., a medical device company using surface acoustics to prevent catheter
acquired infection as well as other applications, where he served as Chief Executive Officer from 2004 to 2014. He practiced clinical
gastroenterology in New York and served as Chief of Gastroenterology at St. John's Episcopal Hospital and South Nassau Communities
Hospital from 1986 to 1995, and was a Clinical Assistant Professor of Medicine at SUNY from 1983 to 1990. Dr. Jacob founded and served
as Editor in Chief of Endoscopy Review and has authored numerous publications in the field of gastroenterology.

 Dr.
Julio Rosenstock, MD, joined the Oramed Scientific Advisory Board in January 2020. Dr. Rosenstock is the Senior Scientific Advisor
and Director of Velocity Clinical Research at Medical City, Dallas, Texas, and a Clinical Professor of Medicine at the University of
Texas Southwestern Medical Center in Dallas, Texas. He is board certified in Internal Medicine, Endocrinology and Metabolism. His clinical
and research activities have focused on exploring novel agents and therapeutic strategies to improve glycemic control, particularly early
combination therapies in Type 2 Diabetes. Over the last 30 years, he has participated in hundreds of clinical trials and has had an active
role in the development of new oral agents, incretin-related therapies and insulin formulations, often acting as a lead clinical investigator
and scientific advisor on the design and reporting of these clinical trials. Dr. Rosenstock has been the author or co-author of 386 peer-reviewed
manuscripts ( H-index 124) and several hundreds of scientific abstracts and he is considered a key opinion leader in Type 2 Diabetes.
He has also contributed to 13 book chapters on various topics in the field of diabetes and is considered a key opinion leader in Type
2 Diabetes.

 Dr.
Jay Skyler, MD, MCAP, FRCP, joined the Oramed Scientific Advisory Board in January 2020. Dr. Skyler is Professor of Medicine,
Pediatrics and Psychology in the Division of Endocrinology, Diabetes and Metabolism, Department of Medicine, University of Miami Leonard
M. Miller School of Medicine. He previously held the position of Director of the Division of Endocrinology, Diabetes and Metabolism.
In addition, Dr. Skyler is Deputy Director of Clinical Research and Academic Programs at the Diabetes Research Institute, and an Adjunct
Professor of Pediatrics at the Barbara Davis Center for Childhood Diabetes at the University of Colorado in Denver. Dr. Skyler's
research focuses on the clinical aspects of diabetes, specifically the conduct of randomized controlled clinical trials. From 1993 to
2015, he was Chairman of the National Institute of Health (NIDDK)-sponsored Diabetes Prevention Trial–- Type 1 (DPT-1) and its
successor Type 1 Diabetes Trial Net, a nationwide and global network conducting clinical trials to prevent T1D.

 Dr.
Anne Peters, MD, joined the Oramed Scientific Advisory Board in June 2022. Dr. Peters is Professor of Medicine at the Keck School
of Medicine of the University of Southern California (USC) and Director of the USC Clinical Diabetes Programs. Dr. Peters earned her
medical degree from the Pritzker School of Medicine at the University of Chicago and performed an internal medicine residency at Stanford
University and an endocrinology fellowship at Cedars-Sinai Medical Center. She previously directed the clinical diabetes programs at
Cedars-Sinai Medical Center and UCLA in California. Her research has focused on testing new approaches for diagnosing and treating diabetes
and developing systems of care to improve outcomes in diabetic under-resourced populations. Dr. Peters has consulted for many
entities, including the FDA, the Centers for Disease Control and Prevention and the National Institutes of Health to help guide the development
and use of treatments for diabetes. In addition to being an investigator for more than 40 research studies, Dr. Peters has published
over 200 articles, has written four books, and has given more than 500 lectures locally, nationally, and internationally. She has
been on multiple guideline writing committees for the treatment of both type 1 and type 2 diabetes. She was a recipient of the ADA Outstanding
Physician Clinician Award, the Bernardo Houssay Award from the National Minority Quality Forum and received an Endocrine Society Laureate
Award for Public Service.

 Employees

 We
believe it is imperative to attract and retain top talent for all positions in the Company. We seek to make Oramed an inclusive, diverse
and safe workplace, with meaningful compensation, benefits and wellness programs and opportunities.

 We
have experienced personnel involved in our research and development programs, as well as appropriate clinical/regulatory, quality assurance
and other personnel needed to advance through clinical trials or have engaged the services of experts in the field for these requirements.
As of December 31, 2023, we have contracted with fifteen individuals for employment or consulting arrangements, including employees of
Oravax. Of our staff, five are senior management, four are engaged in research and development work, and the remaining six are involved
in corporate and administration work.

 We
provide competitive compensation, health and retirement programs for our employees. We offer variable pay in the form of bonuses and
stock-based compensation for eligible employees. We also provide our employees with additional benefits such as team-building and educational
offsite activities and gym facilities. We believe that this provides a comprehensive package to engage, motivate and retain our employees
as a cohesive unit unified in its goal to achieve the Company's strategy and objectives.

 Additional
Information

 Additional
information about us is contained on our Internet website at www.oramed.com. Information on our website is not incorporated by reference
into this report. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those
reports filed or furnished pursuant to Section 13(a) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are available
free of charge on our website under "SEC Filings" as soon as reasonably practicable after we electronically file such material
with, or furnish it to, the SEC. Reports filed with the SEC are made available on its website at www.sec.gov and are also available on
the website of the Israeli Securities Authority at www.magna.isa.gov.il or on the website of the Tel Aviv Stock Exchange at www.tase.co.il.
The following corporate governance documents are also posted on our website: Code of Ethics, Whistleblowing Policy and the charters for
each of the Audit Committee, Compensation Committee and Nominating Committee of our Board.

 ITEM
1A. RISK FACTORS.

 An
investment in our securities involves a high degree of risk. You should consider carefully the following information about these risks,
together with the other information contained in this Annual Report on Form 10-K before making an investment decision. Our business,
prospects, financial condition and results of operations may be materially and adversely affected as a result of any of the following
risks. The value of our securities could decline as a result of any of these risks. You could lose all or part of your investment in
our securities. Some of the statements in "Item 1A. Risk Factors" are forward-looking statements. The following risk factors
are not the only risk factors facing the Company. Additional risks and uncertainties not presently known to us or that we currently deem
immaterial may also affect our business, prospects, financial condition and results of operations.

 Risks
Related to Our Business

 Our
strategic review process may not be successful or timely.

 Following
the results of the ORA-D-013-1 Phase 3 trial, we conducted a comprehensive analysis of the data to understand if there is a path forward
for our oral insulin candidate and are working on a protocol for a new Phase 3 clinical trial to be submitted to the FDA. Concurrently,
we are examining our existing pipeline and have commenced an evaluation process of potential strategic opportunities, including among
others, continuation as a stand-alone business, capital raises, or one or more acquisitions, mergers or business combinations or other
strategic transactions. Potential counterparties in a strategic transaction involving us may place minimal or no value on our assets.
While we are devoting significant efforts to identify and evaluate potential strategic alternatives, there can be no assurance that this
strategic review process will result in us pursuing any transaction or that any transaction, if pursued, will be completed on attractive
terms or at all. Additionally, there can be no assurances that any particular course of action, business arrangement or transaction,
or series of transactions, will be pursued, successfully consummated, or lead to any stockholder value. Any potential transaction would
be dependent on a number of factors that may be beyond our control, including, among other things, market conditions, industry trends,
the interest of third parties in a potential transaction with us, obtaining stockholder approval and the availability of financing to
third parties in a potential transaction with us on reasonable terms. The process of reviewing alternative strategic paths may be time
consuming, may involve the dedication of significant resources and may require us to incur significant costs and expenses. It could negatively
impact our ability to attract, retain and motivate employees, and expose us to potential litigation in connection with this process or
any resulting transaction. If we are not successful in setting forth a new strategic path for the Company, or if our plans are not executed
in a timely fashion, this may cause reputational harm with our stockholders and other stakeholders and the value of our securities may
be adversely impacted. In addition, speculation regarding any developments related to the review of strategic alternatives and perceived
uncertainties related to the future of the Company could cause our stock price to fluctuate significantly. There can be no guarantee
that the process of evaluating alternative strategic paths will result in our entering into or completing potential transactions within
the anticipated timing or at all.

 If
we are successful in completing a strategic transaction, we may be exposed to other operational and financial risks.

 Although
there can be no assurance that a strategic transaction will result from the process we have undertaken to identify and evaluate strategic
alternatives, the negotiation and consummation of any such transaction will require significant time on the part of our management and
may disrupt our business. The negotiation and consummation of any such transaction may also require more time or greater cash resources
than we anticipate and expose us to other operational and financial risks, including: increased near-term and long-term expenditures
exposure to unknown liabilities higher than expected acquisition or integration costs incurrence of substantial debt or dilutive
issuances of equity securities to fund future operations write-downs of assets or goodwill or incurrence of non-recurring, impairment
or other charges increased amortization expenses impairment of relationships with key suppliers of any acquired business
due to changes in management and ownership inability to retain our key employees and possibility of future litigation. Any
of the above risks could have a material adverse effect on our business, financial condition, and prospects.

 Our
ability to consummate a strategic transaction depends on our ability to retain our employees required to consummate such transaction.

 Our
ability to consummate a strategic transaction depends upon our ability to retain our employees required to consummate such a transaction,
the loss of whose services may adversely impact the ability to consummate such transaction. Our cash conservation activities may yield
unintended consequences, such as attrition and reduced employee morale, which may cause remaining employees to seek alternative employment.
Our ability to successfully complete a strategic transaction depends in large part on our ability to retain certain of our remaining
personnel. If we are unable to successfully retain our remaining personnel, we are at risk of a disruption to our exploration and consummation
of a strategic alternative as well as business operations.

 We
may become involved in securities and stockholder litigation that could divert management's attention and harm the Company's
business, and insurance coverage may not be sufficient to cover all costs and damages.

 In
the past, securities and stockholder litigation has often followed certain significant business transactions, such as the sale of a company
or announcement of any other strategic transaction, or the announcement of negative events, such as negative results from clinical trials.
The market price of our common stock dropped substantially when we announced the results of the ORA-D-013-1 Phase 3 trial. We may be
exposed to such litigation even if no wrongdoing occurred. Litigation is usually expensive and diverts management's attention and
resources, which could adversely affect our business and cash resources and our ability to consummate a potential strategic transaction
or the ultimate value our stockholders receive in any such transaction.

 We
continue, and in the future expect, to incur losses.

 Successful
evaluation and completion of our remaining development programs and our transition to normal operations are dependent upon obtaining
necessary regulatory approvals from the FDA prior to selling our products within the United States, and foreign regulatory approvals
must be obtained to sell our products internationally. There can be no assurance that we will receive regulatory approval of any of our
product candidates, and a substantial amount of time may pass before we achieve a level of revenues adequate to support our operations.
We expect to incur substantial expenditures in connection with our research and development programs, our strategic evaluation process,
as well as the regulatory approval process with FDA and other agencies for each of our current or future product candidates during their
respective developmental periods. Obtaining marketing approval will be directly dependent on our ability to implement the necessary regulatory
steps required to obtain marketing approval in the United States and in other countries. We cannot predict the outcome of these activities.

 Based
on our current cash resources and commitments, we believe we will be able to maintain our current planned activities and the corresponding
level of expenditures for at least the next 12 months, although no assurance can be given that we will not need additional funds prior
to such time. If there are unexpected increases in our operating expenses, we may need to seek additional financing during the next 12
months.

 We
will need substantial additional capital in order to satisfy our business objectives.

 To
date, we have financed our operations principally through offerings of securities and we may require substantial additional financing
at various intervals in order to implement any potential strategic alternative, to continue our remaining or potential future research
and development programs, including significant requirements for operating expenses including intellectual property protection and enforcement,
for pursuit of regulatory approvals, and for commercialization of our remaining or future products. We can provide no assurance that
additional funding will be available on a timely basis, on terms acceptable to us, or at all. In the event that we are unable to obtain
such financing, we may not be able to implement the actions we decide to take as part of our strategic review process, and we will not
be able to fully develop and commercialize our technology or pursue new technology. Our future capital requirements will depend upon
many factors, including:

 the
 results of our strategic review process and any new strategic direction we decide to take;

 continued
 scientific progress in our research and development programs;

 costs
 and timing of conducting clinical trials and seeking regulatory approvals and patent prosecutions;

 competing
 technological and market developments;

 our
 ability to establish additional collaborative relationships; and

 effects
 of commercialization activities and facility expansions if and as required.

 If
we cannot secure adequate financing when needed, we may be required to delay, scale back or eliminate one or more of our existing or
planned courses of action or research and development programs, or to enter into license or other arrangements with third parties to
commercialize products or technologies that we would otherwise seek to develop ourselves and commercialize ourselves. In such event,
our business, prospects, financial condition and results of operations may be adversely affected as we may be required to scale-back,
eliminate, or delay development efforts or product introductions or enter into royalty, sales or other agreements with third parties
in order to commercialize our products.

 We
have a history of losses and can provide no assurance as to our future operating results.

 We
do not have sufficient revenues from our research and development activities to fully support our operations. Consequently, we have incurred
net losses and negative cash flows since inception. We currently have only licensing revenues and no product revenues, and may not succeed
in developing or commercializing any products which could generate product revenues. We do not expect to have any products on the market
for several years. In addition, development of our product candidates requires a process of pre-clinical and clinical testing, during
which our products could fail. For example, in January 2023, the ORA-D-013-1 Phase 3 trial did not meet its primary or secondary endpoints.
We may not be able to enter into agreements with one or more companies experienced in the manufacturing and marketing of therapeutic
drugs and, to the extent that we are unable to do so, we will not be able to market our product candidates. Eventual profitability will
depend on our success in developing, manufacturing, and marketing our product candidates or in pursuing a successful strategic alternative.
As of December 31, 2023 and 2022, we had working capital of $109,370,000 and $151,363,000, respectively, and stockholders' equity
of $163,821,000 and $151,812,000, respectively. During the years ended December 31, 2023 and 2022, we generated revenues of $1,340,000
and $2,703,000, respectively. For the period from our inception on April 12, 2002 through December 31, 2023, we incurred net losses of
$157,556,000. We may never achieve profitability and expect to incur net losses in the foreseeable future. See "Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations."

 We
rely upon patents to protect our technology.

 The
patent position of biopharmaceutical and biotechnology firms is generally uncertain and involves complex legal and factual questions.
We do not know whether any of our current or future patent applications will result in the issuance of any patents. Even issued patents
may be challenged, invalidated or circumvented. Patents may not provide a competitive advantage or afford protection against competitors
with similar technology. Competitors or potential competitors may have filed applications for, or may have received patents and may obtain
additional and proprietary rights to compounds or processes used by or competitive with ours. In addition, laws of certain foreign countries
do not protect intellectual property rights to the same extent as do the laws of the United States.

 Patent
litigation is widespread in the biopharmaceutical and biotechnology industry and we cannot predict how this will affect our efforts to
form strategic alliances, conduct clinical testing or manufacture and market any products under development. If challenged, our patents
may not be held valid. We could also become involved in interference proceedings in connection with one or more of our patents or patent
applications to determine priority of invention. If we become involved in any litigation, interference or other administrative proceedings,
we will likely incur substantial expenses and the efforts of our technical and management personnel will be significantly diverted. In
addition, an adverse determination could subject us to significant liabilities or require us to seek licenses that may not be available
on favorable terms, if at all. We may be restricted or prevented from manufacturing and selling our products in the event of an adverse
determination in a judicial or administrative proceeding or if we fail to obtain necessary licenses.

 We
may be unable to protect our intellectual property rights and we may be liable for infringing the intellectual property rights of others.

 Our
ability to compete effectively will depend on our ability to maintain the proprietary nature of our technologies. We currently hold several
pending patent applications in the United States, Canada, Brazil, Europe, India, Hong Kong, Japan and China for our technologies covering
oral administration of insulin and other proteins and oral administration of exenatide and proteins and 117 patents issued by the United
States and various other countries' patent offices that cover a part of our technology, which allows for the oral delivery of proteins;
patents issued by various patent offices that cover part of our technology for the oral delivery of exenatide; and patents issued by
patent offices for treating diabetes. Further, we rely on a combination of trade secrets and non-disclosure and other contractual agreements
and technical measures to protect our rights in our technology. We depend upon confidentiality agreements with our officers, directors,
employees, consultants, and subcontractors, as well as collaborative partners, to maintain the proprietary nature of our technology.
These measures may not afford us sufficient or complete protection, and others may independently develop technology similar to ours,
otherwise avoid our confidentiality agreements, or produce patents that would materially and adversely affect our business, prospects,
financial condition and results of operations. We believe that our technology is not subject to any infringement actions based upon the
patents of any third parties; however, our technology may in the future be found to infringe upon the rights of others. Others may assert
infringement claims against us or against companies to which we have licensed our technology, and if we should be found to infringe upon
their patents, or otherwise impermissibly utilize their intellectual property, our ability to continue to use our technology could be
materially restricted or prohibited. If this event occurs, we may be required to obtain licenses from the holders of this intellectual
property, enter into royalty agreements, or redesign our products so as not to utilize this intellectual property, each of which may
prove to be uneconomical or otherwise impossible. Licenses or royalty agreements required in order for us to use this technology may
not be available on terms acceptable to us, or at all. These claims could result in litigation, which could materially adversely affect
our business, prospects, financial condition and results of operations. Further, we may need to indemnify companies to which we licensed
our technology in the event that such technology is found to infringe upon the rights of others.

 Our
commercial success will also depend significantly on our ability to operate without infringing the patents and other proprietary rights
of third parties. Patent applications are, in many cases, maintained in secrecy until patents are issued. The publication of discoveries
in the scientific or patent literature frequently occurs substantially later than the date on which the underlying discoveries were made
and patent applications are filed. In the event of infringement or violation of another party's patent, we may be prevented from
pursuing product development or commercialization. See "Item 1. Business—Description of Business— Intellectual Property
and Patents."

 Our
success was primarily dependent on the successful commercialization of our oral insulin capsule.

 The
successful commercialization of our principal product, the oral insulin capsule, was crucial for our success. On January 12, 2023, we
announced top-line results from the phase 3 trial of our oral insulin capsule, which did not meet its primary or secondary endpoints,
and indicated that we expect to discontinue oral insulin clinical activities for T2D. At present, following the results of the ORA-D-013-1
Phase 3 trial, we conducted a comprehensive analysis of the data to understand if there is a path forward for our oral insulin candidate
and are working on a protocol for a new Phase 3 clinical trial to be submitted to the FDA. Concurrently, we are examining our existing
pipeline and have commenced an evaluation process of potential strategic opportunities. Even if we succeed in commencing a new clinical
trial for our oral insulin capsule, there are a variety of risks and uncertainties related to its development. Principally, these risks
include the following:

 clinical trial results may show the same results as the ORA-D-013-1 Phase 3 trial;

 clinical trial results may be inconsistent with previous preliminary testing results and
 data from our earlier trials may be inconsistent with clinical data;

 Even
 if our oral insulin capsule is shown to be safe and effective for its intended purposes in
 future clinical trials, we may face significant or unforeseen difficulties in obtaining or
 manufacturing sufficient quantities or at reasonable prices;

 Our
 ability to complete the development and commercialization of the oral insulin capsule for
 our intended use is significantly dependent upon our ability to obtain and maintain experienced
 and committed partners to assist us with obtaining clinical and regulatory approvals for,
 and the manufacturing, marketing and distribution of, the oral insulin capsule on a worldwide
 basis;

 Even
 if our oral insulin capsule is successfully developed, commercially produced and receives
 all necessary regulatory approvals, there is no guarantee that there will be market acceptance
 of our product; and

 Our
 competitors may develop therapeutics or other treatments which are superior or less costly
 than our own with the result that our products, even if they are successfully developed,
 manufactured and approved, may not generate significant revenues.

 Our
business may be seriously harmed if our analysis does not produce positive results, if we are unable to find a path forward to continue
development of our oral insulin capsule, if we are unsuccessful in realizing new strategic opportunities or dealing with any of these
risks, or if we are unable to successfully commercialize our oral insulin capsule for some other reason.

 We
have limited experience in conducting clinical trials.

 Clinical
trials must meet FDA and foreign regulatory requirements. We have limited experience in designing, conducting and managing the preclinical
trials and clinical trials necessary to obtain regulatory approval for our product candidates in any country. In the past, we entered
into agreements with Integrium LLC and other consultants to assist us in designing, conducting and managing our various clinical trials
in the United States, Europe and Israel. Any failure of a consultant to fulfill their obligations could result in significant additional
costs as well as delays in designing, consulting and completing clinical trials on our products.

 Our
clinical trials may encounter delays, suspensions or other problems.

 We
may encounter problems in clinical trials that may cause us or the FDA or foreign regulatory agencies to delay, suspend or terminate
our clinical trials at any phase. These problems could include the possibility that we may not be able to conduct clinical trials at
our preferred sites, enroll a sufficient number of patients for our clinical trials at one or more sites or begin or successfully complete
clinical trials in a timely fashion, if at all. For example, the rate of enrollment for our Phase 1 clinical trial for our oral COVID-19
vaccine in South Africa was slower than anticipated due to several factors, including the fact that many volunteers did not qualify during
screening due to prior asymptomatic COVID-19 infection and other conditions, and as a result we had to add an additional clinical site.
Furthermore, we, the FDA or foreign regulatory agencies may suspend clinical trials at any time if we or they believe the subjects participating
in the trials are being exposed to unacceptable health risks or if we or they find deficiencies in the clinical trial process or conduct
of the investigation. If clinical trials of any of the product candidates fail, we will not be able to market the product candidate which
is the subject of the failed clinical trials. The FDA and foreign regulatory agencies could also require additional clinical trials,
which would result in increased costs and significant development delays. Our failure to adequately demonstrate the safety and effectiveness
of a pharmaceutical product candidate under development could delay or prevent regulatory approval of the product candidate and could
have a material adverse effect on our business, prospects, financial condition and results of operations. For example, see "Item
1. Business—Description of Business— Research and Development" regarding the results of the ORA-D-013-1 Phase 3 trial
that did not meet its primary or secondary endpoints. Finally, the COVID-19 pandemic impacted clinical trials generally in recent years,
and we experienced approximately six months of delays in clinical trials due to slow-downs of recruitment for trials generally related
to COVID-19. We may experience further delays in site initiation and patient enrollment, failures to comply with study protocols, delays
in the manufacture of our product candidates for clinical testing and other difficulties in starting or competing our clinical trials.

 Initial
success in the completed and ongoing early-stage clinical trials does not ensure success in later stage trials, regulatory approval or
commercial viability of a product.

 Positive
results in a clinical trial may not be replicated in subsequent or confirmatory trials. Additionally, success in preclinical work or
early stage clinical trials does not ensure that later stage or larger scale clinical trials will be successful or that regulatory approval
will be obtained. Any of our product's failure to show sufficient efficacy in patients with the targeted indication, or if such
studies are discontinued for any other reason, could negatively impact our development and commercialization goals for these products
and our stock price could decline. Many companies in the biopharmaceutical industry have suffered significant setbacks in advanced clinical
trials due to lack of efficacy or adverse safety profiles, notwithstanding promising results in earlier trials. As a result, preliminary
and interim data should be viewed with caution until the final data are available. We have invested in clinical studies of medicines
that have not met the primary clinical endpoints in their Phase 3 studies or have been discontinued for other reasons. For example, in
January 2023, we reported that ORA-D-013-1 trial did not meet its primary or secondary endpoint. Even if later stage clinical trials
are successful, regulatory authorities may delay or decline approval of our product candidates.

 There
are a number of factors that could cause a clinical study to fail or be delayed, including: (i) the clinical study may produce negative
or inconclusive results; (ii) regulators may require that we hold, suspend or terminate clinical research for noncompliance with regulatory
requirements; (iii) we, our partners, the FDA or foreign regulatory authorities could suspend or terminate a clinical study due to adverse
side effects of a product on subjects or lack of efficacy in the trial; (iv) we, or our partners, may decide, or regulators may require
us, to conduct additional preclinical testing or clinical studies; (v) change in rates of enrollment and dropout among clinical trial
participants; (vi) differences in the size and type of the patient populations; (vii) changes in and adherence to the dosing regimen
and other clinical trial protocols; and (viii) people who enroll in the clinical study may later drop out due to adverse events, a perception
they are not benefiting from participating in the study, fatigue with the clinical study process or personal or other issues. The occurrence
of any of these events could result in significant costs and expense, have an adverse effect on our business, financial condition and
results of operations and/or cause our stock price to decline or experience periods of volatility.

 Clinical
trials of our products conducted by third parties may encounter delays, suspensions or other problems and are outside of our control.

 Third
parties who conduct clinical trials of our products may encounter problems that may cause delays, suspensions or other problems at any
phase. These problems could include the possibility that they may not be able to conduct clinical trials at their preferred sites, enroll
a sufficient number of patients for their clinical trials at one or more sites or begin or successfully complete clinical trials in a
timely fashion, if at all. For example, the rate of enrollment for our Phase 1 clinical trial for our oral COVID-19 vaccine in South
Africa was slower than anticipated due to several factors, including the fact that many volunteers did not qualify during screening due
to prior asymptomatic COVID-19 infection and other conditions, and as a result we had to add an additional clinical site. In addition,
these third parties are not controlled by us and may conduct these trials in a manner in which we disagree or which may prove to be unsuccessful.
Furthermore, domestic or foreign regulatory agencies may suspend clinical trials at any time if they believe the subjects participating
in the trials are being exposed to unacceptable health risks or if they find deficiencies in the clinical trial process or conduct of
the investigation. If such clinical trials conducted by third parties fail, it could have a material adverse effect on our business,
prospects, financial condition and results of operations.

 We
can provide no assurance that our products will obtain regulatory approval or that the results of clinical trials will be favorable.

 The
testing, marketing and manufacturing of any of our products will require the approval of the FDA or regulatory agencies of other countries.
We cannot predict with any certainty the amount of time necessary to obtain regulatory approvals, including from the FDA or other foreign
regulatory authorities, and whether any such approvals will ultimately be granted. In any event, review and approval by the regulatory
bodies is anticipated to take a number of years. Preclinical and clinical trials may reveal that one or more of our products are ineffective
or unsafe, in which event further development of such products could be seriously delayed or terminated. For example, in January 2023,
we announced that our ORA-D-013-1 Phase 3 trial did not meet its primary or secondary endpoints. As a result, we decided to terminate
our ORA-D-013-2 Phase 3 trial, conducted a comprehensive analysis of the data to understand if there is a path forward for our oral insulin
candidate and are working on a protocol for a new Phase 3 clinical trial to be submitted to the FDA. Moreover, obtaining approval for
certain products may require the testing on human subjects of substances whose effects on humans are not fully understood or documented.
Delays in obtaining necessary regulatory approvals of any proposed product and failure to receive such approvals would have an adverse
effect on the product's potential commercial success and on our business, prospects, financial condition and results of operations.
In addition, it is possible that a product may be found to be ineffective or unsafe due to conditions or facts which arise after development
has been completed and regulatory approvals have been obtained. In this event we may be required to withdraw such product from the market.
See "Item 1. Business—Description of Business—Government Regulation."

 We
are dependent upon third party suppliers of our raw materials and for other services.

 We
are dependent on outside vendors for our entire supply of the oral insulin capsules and do not currently have any long-term agreements
in place for the supply of oral insulin capsules, which is still necessary if we decide to continue development of these projects. While
we believe that there are numerous sources of supply available, if the third party suppliers were to cease production, or otherwise fail
to supply us with quality raw materials in sufficient quantities on a timely basis and we were unable to contract on acceptable terms
for these services with alternative suppliers, our ability to produce our products and to conduct testing and clinical trials would be
materially adversely affected.

 We
rely on suppliers, vendors, outsourcing partners, alliance partners and other third parties to research, develop, manufacture, commercialize,
co-promote and sell our products, manage certain marketing, IT, data and other business unit and functional services and meet their contractual,
regulatory and other obligations. Using these third parties poses a number of risks, such as: (i) they may not perform to our standards
or legal requirements, for example, in relation to the outsourcing of significant clinical development activities for innovative medicines
to some CROs; (ii) they may not produce reliable products; (iii) they may not perform in a timely manner; (iv) they may not maintain
confidentiality of our proprietary information; (v) they may incur a significant cyberattack or business disruption; (vi) they may be
subject to government orders or mandates that require them to give priority to the government and set aside pre-existing commercial orders;
(vii) disputes may arise with respect to ownership of rights to technology developed with our partners; and (viii) disagreements could
cause delays in, or termination of, the research, development or commercialization of the product or result in litigation or arbitration.
The failure of any critical third party to meet its obligations; to adequately deploy business continuity plans in the event of a crisis;
and/or to satisfactorily resolve significant disagreements with us or address other factors, could have a material adverse impact on
our operations and results. In addition, if these third parties violate, or are alleged to have violated, any laws or regulations, including
the local pharmaceutical code, the U.S. Foreign Corrupt Practice Act of 1977, the U.K. Bribery Act of 2010, the EU's General Data
Protection Regulations, and other similar laws and regulations, during the performance of their obligations for us, we could suffer financial
and reputational harm or other negative outcomes, including possible legal consequences.

 Any
future revenues from HTIT are dependent upon third party suppliers and Chinese regulatory approvals.

 Any
future revenues from HTIT under the TLA are dependent upon the achievement of certain milestones and conditions, and the success of HTIT
to implement our technology and to manufacture the oral insulin capsule. Any future revenues from HTIT under the TLA are also dependent
upon the ability of third parties to scale-up one of our oral capsule ingredients and to scale-up the manufacturing process of our capsules.
Our future revenues from royalties from HTIT are further dependent upon the granting of regulatory approvals in the Territory. Accordingly,
if any of the foregoing does not occur, we may not be successful in receiving future revenues from HTIT and may not succeed with our
business plans in China.

 If
we fail to complete the transactions contemplated under the JV Agreement with HTIT, if such joint venture is not successful, or if we
fail to realize the benefits we anticipate from such joint venture, we may not be able to capitalize on the full market potential of
our drug products and technology.

 On
January 22, 2024, we entered into the JV Agreement with HTIT, pursuant to which, subject to the terms and conditions set forth in the
JV Agreement, the parties will establish a JV based on Oramed's oral drug delivery technology.

 The
consummation of the JV Agreement is subject to and contingent upon the parties entering into additional agreements within a three-month
period, including an asset transfer agreement for the transfer of Oramed's intellectual property to the JV, a commercial supply
agreement for the manufacture and supply of products by HTIT to the JV, as well as other documents and agreements to regulate the relationship
of the parties and the JV to be formed pursuant to the JV Agreement. There is no assurance that the parties will complete and sign these
additional agreements within the agreed timeline or at all. If such agreements are not signed within the agreed timeframe, then either
party may apply a 30-day extension, after which the JV Agreement may be terminated and voided by either party. Thereafter, the consummation
of the JV transaction is further subject to the satisfaction or waiver of certain other closing conditions within a three-month period
following the completion of the aforesaid ancillary agreements. If the closing conditions are not met within the agreed timeframe, then
either party may apply a 30-day extension, after which the JV Agreement may be terminated and voided by either party.

 If
we do not successfully complete the ancillary agreements in a timely manner, or at all, this may harm our ability to complete additional
clinical trials and marketing of our oral insulin candidate. In addition, this may cause irreparable harm to our financial position and
business operations.

 Furthermore,
there can be no assurances that the JV will receive the necessary regulatory approvals for the Phase 3 oral insulin trial in the United
States or that our drug products and our technology will be developed and commercialized successfully. In addition, the JV will subject
us to a number of risks including risks relating to the lack of full control of the JV, potential disagreements with HTIT about how to
manage the JV that may result in the delay or termination of the commercialization of our products or product candidates or that result
in costly litigation or arbitration that diverts management attention and resources, conflicting interests of the JV, and the JV and
its business not being profitable.

 While
we believe that our board representation, voting rights and other contractual rights with respect to the JV will serve to mitigate some
of these risks, we may have disagreements with the other directors and HTIT that could impair our ability to influence the JV to act
in a manner that we believe is in the best interest of the Company.

 If
we do not resolve our dispute with HTIT favorably, we may need to reverse deferred revenue of up to $2 million and will not receive an
additional $4 million in royalties.

 On
August 21, 2020, we received a letter from HTIT, disputing certain pending payment obligations of HTIT under the TLA. We estimate this
obligation to be between $2 million and $6 million. While we wholly disputed said claims and are planning to resolve any such claims
as part of our discussions with HTIT, if we are not successful in consummating the JV or resolving the claims as part of the JV, we may
be subsequently required to repay to HTIT up to $2 million, which has been received and has been included in our deferred revenue in
each of the consolidated balance sheets for the years ended December 31, 2023 and 2022. In addition, we will not receive an additional
$4 million in Royalties if HTIT is entitled to the full disputed amount of $6 million.

 We
may not realize a return on the ordinary shares of DNA and Entera that we own.

 DNA's
ordinary shares are traded on the Tel Aviv Stock Exchange and Entera's ordinary shares are traded on the Nasdaq Stock Market, both
of which are subject to market fluctuations, and may, at times, have a price below the value on the date we acquired such shares. In
addition, the ordinary shares of DNA and Entera have historically experienced low trading volume. As a result, there is no guarantee
that we will be able to resell the ordinary shares of DNA or Entera at the prevailing market prices or that we will realize a positive
return on such shares.

 We
may not realize the full benefit from our distribution license agreement with Medicox.

 Our
distribution license agreement with Medicox provides that Medicox will comply with agreed distribution targets and will purchase ORMD-0801
at an agreed upon transfer price per capsule and pay us up to $15 million in developmental milestones, $2 million of which have already
been received by us. If we are not successful in finding a mutually agreed way to continue our collaboration following the results of
the ORA-D-013-1 Phase 3 trial, or if Medicox is not successful in independently advancing the oral insulin candidate, we may not realize
the benefits from this collaboration.

 We
are highly dependent upon our ability to enter into agreements with collaborative partners to develop, commercialize and market our products.

 Our
long-term strategy is to ultimately seek a strategic commercial partner, or partners, such as large pharmaceutical companies, with extensive
experience in the development, commercialization, and marketing of insulin applications and/or other orally digestible drugs. Such planned
strategic partnership, or partnerships, may provide a marketing and sales infrastructure for our products as well as financial and operational
support for global clinical trials, post marketing trials, label expansions and other regulatory requirements concerning future clinical
development in the United States and elsewhere. We currently lack the resources to manufacture any of our product candidates on a large
scale and we have no sales, marketing or distribution capabilities. In the event we are not able to enter into a collaborative agreement
with a partner, or partners, on commercially reasonable terms, or at all, we may be unable to commercialize our products, which would
have a material adverse effect upon our business, prospects, financial condition and results of operations.

 The
biotechnology and biopharmaceutical industries are characterized by rapid technological developments and a high degree of competition.
We may be unable to compete with more substantial enterprises.

 The
biotechnology and biopharmaceutical industries are characterized by rapid technological developments and a high degree of competition.
As a result, our products could become obsolete before we recoup any portion of our related research and development and commercialization
expenses. These industries are highly competitive, and this competition comes both from biotechnology firms and from major pharmaceutical
and chemical companies. Many of these companies have substantially greater financial, marketing and human resources than we do (including,
in some cases, substantially greater experience in clinical testing, manufacturing and marketing of pharmaceutical products). We also
experience competition in the development of our products from universities and other research institutions and compete with others in
acquiring technology from such universities and institutions. We face the risk that new market entrants and existing competition may
try to replicate our business model or introduce a more innovative offering that renders our services less competitive or obsolete. In
addition, our research and development efforts may target diseases and conditions for which there are existing therapies or therapies
that are being developed by our competitors. Further, any products resulting from our research and development efforts might not be able
to compete successfully with others' existing and future products. See "Item 1. Business—Description of Business—Competition."

 Our
financial position or results could be negatively affected by product liability claims.

 It
is possible that we will be responsible for potential product liability stemming from product research, development or manufacturing
and may face an even greater risk if any product candidate that we develop is commercialized. If we cannot successfully defend ourselves
against claims that products we develop independently or with our partners caused injuries, we could incur substantial liabilities. Regardless
of the merit or eventual outcome of such claims, any liability claims may result in, among other things, decreased demand for any product
that we may develop, loss of revenues, significant time and costs to defend the related litigation, initiation of investigations by regulators
and injury to our reputation and significant negative media attention. On occasion, large judgments have been awarded in class action
lawsuits based on drugs or medical treatments that had unanticipated adverse effects. Our clinical trials are covered by liability insurance,
but notwithstanding such coverage, our financial position or results could be negatively affected by product liability claims.

 We
have limited senior management resources and may be required to obtain more resources to manage our growth.

 We
expect the expansion of our business, as well as the activities we take as a result of our strategic review process, to place a significant
strain on our limited managerial, operational and financial resources. We will be required to expand our operational and financial systems
significantly and to expand, train and manage our work force in order to manage the expansion of our operations. Our failure to fully
integrate our new employees into our operations could have a material adverse effect on our business, prospects, financial condition
and results of operations. Our ability to attract and retain highly skilled personnel is critical to our operations and expansion. We
face competition for these types of personnel from other technology companies and more established organizations, many of which have
significantly larger operations and greater financial, technical, human and other resources than we have. We may not be successful in
attracting and retaining qualified personnel on a timely basis, on competitive terms or at all. If we are not successful in attracting
and retaining these personnel, our business, prospects, financial condition and results of operations will be materially adversely affected.
See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," "Item 1.
Business—Description of Business—Employees."

 We
depend upon our senior management and skilled personnel and their loss or unavailability could put us at a competitive disadvantage.

 We
currently depend upon the efforts and abilities of our senior executives, as well as the services of several key consultants and other
key personnel, including Dr. Miriam Kidron, our Chief Scientific Officer. The loss or unavailability of the services of any of these
individuals for any significant period of time could have a material adverse effect on our business, prospects, financial condition and
results of operations. We do not maintain "key man" life insurance policies for any of our senior executives. In addition,
recruiting and retaining qualified scientific personnel to perform future research and development work will be critical to our success.
There is currently a shortage of employees with expertise in developing, manufacturing and commercialization of products and related
clinical and regulatory affairs, and this shortage is likely to continue. Competition for skilled personnel is intense and turnover rates
are high. Our ability to attract and retain qualified personnel may be limited. Our inability to attract and retain qualified skilled
personnel would have a material adverse effect on our business, prospects, financial condition and results of operations.

 Our
existing and any future joint ventures may limit our flexibility with jointly owned investments and we may not realize the benefits we
expect from these arrangements.

 We
are currently party to certain joint ventures, and we may in the future sell or contribute additional assets or acquire, develop or recapitalize
assets to or in these joint ventures or other joint ventures that we may enter.

 Our
participation in our existing joint ventures is subject to risks, including the following:

 We
 share approval rights over certain major decisions affecting the ownership or operation of
 the joint ventures and any assets owned by the joint ventures;

 We
 may need to contribute additional capital in order to preserve, maintain or grow the joint
 ventures and their investments;

 Our
 joint venture investors may have economic or other business interests or goals that are inconsistent
 with our business interests or goals and that could affect our ability to fully benefit from
 the assets owned by the joint ventures;

 Our
 joint venture investors may be subject to different laws or regulations than us, which could
 create conflicts of interest;

 Our
 joint ventures may have license and other agreements with other investors, which we are not
 party to and have no control over;

 Our
 ability to sell our interests in, or sell additional assets to, the joint ventures or the
 joint ventures' ability to sell additional interests of, or assets owned by, the joint
 ventures when we so desire are subject to the approval rights of the other joint venture
 investors under the terms of the agreements governing the joint ventures; and

 Disagreements
 with our joint venture investors could result in litigation or arbitration that could be
 expensive and distracting to management and could delay important decisions.

 Any
of the foregoing risks could have a material adverse effect on our business, financial condition and results of operations. Further,
these, similar, enhanced or additional risks, including possible risks of the other joint venture investors having licensed assets to
the joint venture, may apply to any future additional or amended joint ventures that we may enter into.

 Healthcare
policy changes, including pending legislation recently adopted and further proposals still pending to reform the U.S. healthcare system,
may harm our future business.

 Healthcare
costs have risen significantly over the past decade. There have been and continue to be proposals by legislators, regulators and third-party
payors to keep these costs down. Certain proposals, if passed, would impose limitations on the prices we will be able to charge for the
products that we are developing, or the amounts of reimbursement available for these products from governmental agencies or third-party
payors. These limitations could in turn reduce the amount of revenues that we will be able to generate in the future from sales of our
products and licenses of our technology.

 In
2010, the federal government enacted healthcare reform legislation that has significantly impacted the pharmaceutical industry. In addition
to requiring most individuals to have health insurance and establishing new regulations on health plans, this legislation requires discounts
under the Medicare drug benefit program and increased rebates on drugs covered by Medicaid. In addition, the legislation imposes an annual
fee, which has increased annually, on sales by branded pharmaceutical manufacturers. There can be no assurance that our business will
not be materially adversely affected by these increased rebates, fees and other provisions. In addition, these and other initiatives
in the United States may continue the pressure on drug pricing, especially under the Medicare and Medicaid programs, and may also increase
regulatory burdens and operating costs. The announcement or adoption of any such initiative could have an adverse effect on potential
revenues from any product that we may successfully develop. An expansion in government's role in the U.S. healthcare industry may
lower the future revenues for the products we are developing and adversely affect our future business, possibly materially.

 In
September 2017, members of the U.S. Congress introduced legislation with the announced intention to repeal and replace major provisions
of the Patient Protection and Affordable Care Act, or the ACA. In addition to those efforts, on October 12, 2017, an executive order
was issued that modified certain aspects of the ACA. Following several years of litigation in the federal courts, in June 2021, the U.S.
Supreme Court upheld the ACA when it dismissed a legal challenge to the ACA's constitutionality. Further attempts to repeal or
to repeal and replace the ACA may continue. In addition, various other healthcare reform proposals have also emerged at the federal and
state level. We cannot predict what healthcare initiatives, if any, will be implemented at the federal or state level, or the effect
any future legislation or regulation will have on us.

 We
are exposed to fluctuations in currency exchange rates.

 A
considerable amount of our expenses are generated in dollars or in dollar-linked currencies, but a significant portion of our expenses
such as some clinical trials and payroll costs are generated in other currencies such as NIS and Euro. Most of the time, our non-dollar
assets are not totally offset by non-dollar liabilities. Due to the foregoing and to the fact that our financial results are measured
in dollars, our results could be adversely affected as a result of a strengthening or weakening of the dollar compared to these other
currencies. During the years ended December 31, 2019, 2020 and 2021, the dollar depreciated in relation to the NIS, which raised the
dollar cost of our Israeli based operations and adversely affected our financial results, while during the year ended December 31, 2022
and 2023, the dollar increased in relation to the NIS, which reduced the dollar cost of our Israeli based operations costs. In addition,
our results could also be adversely affected if we are unable to guard against currency fluctuations in the future. Although we may in
the future decide to undertake foreign exchange hedging transactions to cover a portion of our foreign currency exchange exposure, we
currently do not hedge our exposure to foreign currency exchange risks. These transactions, however, may not adequately protect us from
future currency fluctuations and, even if they do protect us, may involve operational or financing costs we would not otherwise incur.

 We
face uncertainties related to Oravax's oral COVID-19 vaccine.

 We
face uncertainties related to Oravax's oral COVID-19 vaccine, including uncertainties related to the risk that our continued development
programs may not be successful, commercially viable or receive approval from regulatory authorities. Other companies may produce superior
or competitive oral or other products that make Oravax's oral COVID-19 vaccine not commercially worthwhile. Even if we succeed
in developing the product, the demand for any product we may develop may no longer exist, given the fluid nature of the COVID-19 pandemic,
including possible decreased demand for vaccines due to weaker strains, the need for different vaccines for new variants of the virus
or an end of the pandemic that may render Oravax's vaccine obsolete.

 Risks
Related to the Note

 We
have lent a substantial amount of funds to Scilex. In the event that Scilex is unable to service its obligations under the Note and defaults
on such Note, it could have a material adverse effect on our business.

 On
September 21, 2023, we were issued the Note in an aggregate principal amount of $101,875,000 by Scilex pursuant to the Scilex SPA. The
Note matures on March 21, 2025 and is payable in six principal installments, with the first installment paid on December 21, 2023. Interest
under the Note accrues at a fluctuating per annum interest rate equal to the sum of (1) the greater of (x) four percent (4%) and (y)
Term SOFR (as defined in the Note) and (2) eight and one half percent (8.5%), payable in-kind on a monthly basis.

 There
is no guarantee that Scilex will be able to service its repayment obligations under the Note. Although the Note is secured by a first
priority security interest in and liens on all of the assets of Scilex and its subsidiaries, no assurance can be made that Scilex will
be able to repay the Note when due or that we will be able to foreclose on such assets and recover enough value upon the sale of such
assets to repay the amounts owed to us. In such an event, we could lose all or a substantial portion of our loan investment. Additionally,
Scilex has disclosed in its periodic reports filed with the SEC that there is substantial doubt about its ability to continue as a going
concern. If Scilex is unable to continue as a going concern or defaults on the Note, we may be unable to recover some or all of the principal
amount of the Note, which could have a material adverse affect on our business, financial condition and results of operations.

 We
may have difficulty realizing the full value of the Warrants.

 The
Closing Penny Warrant will be exercisable upon the earliest of (i) March 14, 2025, (ii) the date on which the Note has been repaid in
full, and (iii) the Management Sale Trigger Date (as defined therein), if any, and will expire on the date that is the fifth anniversary
of the issuance date. For purposes of the Penny Warrants, the Management Sale Trigger Date is generally the first date that certain members
of Scilex management engage in certain sales or other similar transfers of shares of Scilex Common Stock or other of Scilex's or
any of its subsidiaries' securities, subject to certain exceptions as are customary for lock-up agreements executed by directors
and officers in connection with financings or similar transactions.

 The
Subsequent Penny Warrants will vest and become exercisable on the date that is the later of (i) Subsequent Penny Warrant Vesting Date,
and (ii) the earliest of (A) March 14, 2025, (B) the date on which the Note has been repaid in full and (C) the Management Sale Trigger
Date, if any. Each Subsequent Penny Warrant will expire on the date that is the fifth anniversary of the issuance date; provided that,
if the Note is repaid in full prior to the Subsequent Penny Warrant Vesting Date applicable to such Subsequent Penny Warrant, such Subsequent
Penny Warrant will expire on the date the Note is repaid in full.

 The
Transferred Warrants are listed on Nasdaq, have an exercise price of $11.50 per share, are fully exercisable, and expire on November
10, 2027.

 Because
of the foregoing restrictions on exercisability of the Closing Penny Warrant and the Subsequent Penny Warrants, and exercise price of
the Transferred Warrants, we may not be able to exercise the Warrants for shares of Scilex Common Stock at a time when it would be financially
beneficial for us to do so. Accordingly, there is no guarantee that we will be able to realize the full or any value of the Warrants.

 Risks
Related to our Common Stock

sales of our common stock by our existing stockholders could adversely affect our stock price.

 The market price of our common
stock could decline as a result of sales of a large number of shares of our common stock in the market, or the perception that these sales
could occur. We experienced a significant decline in the market price of our common stock and a significant increase in trading volume
after announcing the results of our ORA-D-013-1 Phase 3 trial in January 2023. Any strategic decision we make as a result of our strategic
review process may also negatively affect our common stock price or cause volatility in the market price of our common stock. Sales of
large amounts of our securities or large variations in trading volume might make it more difficult for us to sell equity securities in
the future at a time and at a price that we deem appropriate. As of March 6, 2024, we had outstanding 40,519,160 shares of common stock,
a large majority of which are freely tradable. Giving effect to the exercise in full of all of our outstanding warrants, options and restricted
stock units, or RSUs, including those currently unexercisable or unvested, we would have outstanding 45,487,537 shares of common stock.

 Our
issuance of warrants, options and RSUs to investors, employees and consultants may have a negative effect on the trading prices of our
common stock as well as a dilutive effect.

 We have issued and may continue
to issue warrants, options, RSUs and convertible notes at, above or below the current market price. As of March 6, 2024, we had outstanding
warrants and options exercisable for 20,000 shares of common stock at a weighted average exercise price of $4.13. We also had outstanding
RSUs exercisable for 350,761 shares of common stock. In addition to the dilutive effect of a large number of shares of common stock and
a low exercise price for the warrants and options, there is a potential that a large number of underlying shares of common stock may be
sold in the open market at any given time, which could place downward pressure on the trading of our common stock.

 Because
we will not pay cash dividends in the foreseeable future, investors may have to sell shares of our common stock in order to realize their
investment.

 We
have not paid any cash dividends on our common stock and do not intend to pay cash dividends in the foreseeable future. We intend to
retain future earnings, if any, for reinvestment in the development and expansion of our business. Any credit agreements which we may
enter into with institutional lenders or otherwise may restrict our ability to pay dividends. Whether we pay cash dividends in the future
will be at the discretion of our Board and will be dependent upon our financial condition, results of operations, capital requirements
and any other factors that our Board decides is relevant.

 Our
failure to maintain compliance with the Nasdaq Capital Market's continued listing requirements could result in the delisting of
our common stock.

 Our
common stock is currently listed on the Nasdaq Capital Market. In order to maintain this listing, we must satisfy minimum financial and
other requirements. Nasdaq Listing Rule 5550(a)(2) requires the minimum bid price of our common stock on the Nasdaq Capital Market to
remain above $1.00. If the bid price of our common stock closes below $1.00 per share for 30 consecutive business days, we would be in
violation of Nasdaq Listing Rule 5550(a)(2). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), we would have 180 calendar days to
regain compliance with the minimum bid requirement.

 While
we intend to engage in efforts to maintain compliance, and thus maintain our listing, there can be no assurance that we will continue
to meet all applicable Nasdaq Capital Market requirements in the future, especially in light of any strategic transaction we may choose
to undertake. If our common stock were removed from listing with the Nasdaq Capital Market, it may be subject to the so-called "penny
stock" rules. The SEC has adopted regulations that define a "penny stock" to be any equity security that has a market
price per share of less than $5.00, subject to certain exceptions, such as any securities listed on a national securities exchange, which
is the exception on which we currently rely. For any transaction involving a "penny stock," unless exempt, the rules impose
additional sales practice requirements on broker-dealers, subject to certain exceptions. If our common stock were delisted and determined
to be a "penny stock," a broker-dealer may find it more difficult to trade our common stock and an investor may find it more
difficult to acquire or dispose of our common stock on the secondary market.

 If
our common stock is delisted and there is no longer an active trading market for our shares, it may, among other things: cause stockholders
difficulty in selling our shares without depressing the market price for the shares or selling our shares at all; substantially impair
our ability to raise additional funds; result in a loss of institutional investor interest and fewer financing opportunities for us;
and/or result in costly litigation, significant liabilities and diversion of our management's time and attention and could have
a material adverse effect on our financial condition, business and results of operations.

 A
delisting would also reduce the value of our equity compensation plans, which could negatively impact our ability to retain employees.

 As
the market price of our common stock may fluctuate significantly, this may make it difficult for you to sell your shares of common stock
when you want or at prices you find attractive.

 The
price of our common stock is currently listed on the Nasdaq Capital Market and on the Tel Aviv Stock Exchange and constantly changes.
In recent years, the stock market in general has experienced extreme price and volume fluctuations. We expect that the market price of
our common stock will continue to fluctuate. These fluctuations may result from a variety of factors, many of which are beyond our control.
For example, we experienced a significant decline in the market price of our common stock after announcing the results of our ORA-D-013-1
Phase 3 trial in January 2023. These factors include:

 market
 acceptance of our new strategy, once determined and announced;

 clinical
 trial results and the timing of the release of such results;

 the
 amount of cash resources and our ability to obtain additional funding;

 announcements
 of research activities, business developments, technological innovations or new products
 by us or our competitors;

 entering
 into or terminating strategic relationships;

 changes
 in government regulation;

 departure
 of key personnel;

 disputes
 concerning patents or proprietary rights;

 changes
 in expense level;

 future
 sales of our equity or equity-related securities;

 public
 concern regarding the safety, efficacy or other aspects of the products or methodologies
 being developed;

 activities
 of various interest groups or organizations;

 media
 coverage; and

 status
 of the investment markets.

sales of common stock or the issuance of securities senior to our common stock or convertible into, or exchangeable or exercisable for,
our common stock could materially adversely affect the trading price of our common stock, and our ability to raise funds in new equity
offerings.

sales of substantial amounts of our common stock, including pursuant to any strategic opportunity, the Cantor Equity Distribution Agreement
(as defined below), or other equity-related securities in the public market or privately, or the perception that such sales could occur,
could adversely affect prevailing trading prices of our common stock and could impair our ability to raise capital through future offerings
of equity or other equity-related securities. We anticipate that we will need to raise capital through offerings of equity and equity
related securities. We can make no prediction as to the effect, if any, that future sales of shares of our common stock or equity-related
securities, or the availability of shares of common stock for future sale, will have on the trading price of our common stock.

 Our
stockholders may experience significant dilution as a result of any additional financing using our equity securities.

 To
the extent that we raise additional funds by issuing equity securities, including in connection with any strategic opportunity or pursuant
to the Cantor Equity Distribution Agreement, our stockholders may experience significant dilution. Additionally, we may, from time to
time or in connection with a strategic alternative, issue additional shares of common stock at a discount from the current trading price
of our common stock. As a result, our stockholders would experience immediate dilution upon the purchase of any shares of our common
stock sold at such discount. In addition, as opportunities present themselves, we may enter into financing or similar arrangements in
the future, including the issuance of convertible debt securities, preferred stock or common stock. If we issue common stock or securities
convertible into common stock, our common stockholders would experience additional dilution and, as a result, our stock price may decline.

 Risks
Related to Conducting Business in Israel

 We
are affected by the political, economic and military risks of having operations in Israel.

 We
have operations in the State of Israel, and we are directly affected by political, economic and security conditions in that country.
Since the establishment of the State of Israel in 1948, a number of armed conflicts have taken place between Israel and its Arab neighbors
and a state of hostility, varying in degree and intensity, has led to security and economic problems for Israel. In addition, acts of
terrorism, armed conflicts or political instability in the region could negatively affect local business conditions and harm our results
of operations. We cannot predict the effect on the region of any diplomatic initiatives or political developments involving Israel or
the Palestinians or other countries and territories in the Middle East. Recent political events, including political uprisings, social
unrest and regime change, in various countries in the Middle East and North Africa have weakened the stability of those countries and
territories, which could result in extremists coming to power. In addition, Iran has threatened to attack Israel and is widely believed
to be developing nuclear weapons. Iran is also believed to have a strong influence among extremist groups in the region, such as Hamas
in Gaza and Hezbollah in Lebanon. This situation has escalated in the past and may potentially escalate in the future to violent events
which may affect Israel and us. On October 7, 2023, the State of Israel was attacked by and subsequently declared war on Hamas.
Israel has been in an ongoing state of war with Hamas since that time. Following the attack by Hamas, Hezbollah has also launched attacks
against Israel and Israel has been responding to these attacks with targeted air strikes. It is possible that other terrorist organizations,
including Palestinian military organizations in the West Bank, as well as other hostile countries, such as Iran, will join the hostilities.
Although we believe that there is no immediate risk to our business operations related to these events, our business, prospects, financial
condition and results of operations could be materially adversely affected if such hostilities involving Israel continue or escalate
or if trade or scientific cooperation between Israel and its current partners is interrupted or curtailed. Moreover, we cannot predict
how this war will ultimately affect Israel's economy in general, which may involve a downgrade in Israel's credit rating
by rating agencies (such as the recent downgrade by Moody's of its credit rating of Israel from A1 to A2, as well as the downgrade
of its outlook rating from "stable" to "negative"). We may also be targeted by cyber terrorists specifically
because we are an Israeli-related company.

 All
adult male permanent residents of Israel, unless exempt, may be required to perform military reserve duty annually. Additionally, all
such residents are subject to being called to active duty at any time under emergency circumstances, and several hundred thousand Israeli
military reservists were drafted to perform immediate military service during the current war with Hamas and other hostile elements,
such as Hezbollah in Lebanon. Some of our employees may in the future be obligated to perform annual military reserve duty, although
none were called up for reserves in the current war. If called up, such persons may be absent from their positions for a lengthy period
of time. We can provide no assurance that such requirements will not have a material adverse effect on our business, prospects, financial
condition and results of operations in the future, particularly if emergency circumstances occur.

 Because
we received grants from the Israel Innovation Authority of the Israeli Ministry of Economy and Industry we are subject to ongoing restrictions.

 We
received royalty-bearing grants from the Israel Innovation Authority of the Israeli Ministry of Economy and Industry, or IIA, for research
and development programs that meet specified criteria. We did not recognize any grants in the years ended December 31, 2023 and December
31, 2022. We do not expect to receive further grants from the IIA in the future. The terms of the IIA grants limit our ability to transfer
know-how developed under an approved research and development program outside of Israel, regardless of whether the royalties were fully
paid.

 It
may be difficult to enforce a U.S. judgment against us or our officers and directors and to assert U.S. securities laws claims in Israel.

 Almost
all of our directors and officers are nationals and/or residents of countries other than the United States. As a result, service of process
upon us, our Israeli subsidiary and our directors and officers, may be difficult to obtain within the United States. Furthermore, because
the majority of our assets and investments, and most of our directors and officers are located outside the United States, it may be difficult
for investors to enforce within the United States any judgments obtained against us or any such officers or directors. Additionally,
it may be difficult to assert U.S. securities law claims in original actions instituted in Israel. Israeli courts may refuse to hear
a claim based on a violation of U.S. securities laws because Israel is not the most appropriate forum in which to bring such a claim.
In addition, even if an Israeli court agrees to hear a claim, it may determine that Israeli law and not U.S. law is applicable to such
claim. If U.S. law is found to be applicable, the content of applicable U.S. law must be proved as a fact, which can be a time-consuming
and costly process. Certain matters of procedure will also be governed by Israeli law.

 Subject
to specified time limitations and legal procedures, under the rules of private international law currently prevailing in Israel, Israeli
courts may enforce a U.S. judgment in a civil matter, including a judgment based upon the civil liability provisions of the U.S. securities
laws, as well as a monetary or compensatory judgment in a non-civil matter, provided that the following key conditions are met:

 subject
 to limited exceptions, the judgment is final and non-appealable;

 the
 judgment was given by a court competent under the laws of the state in which the court is
 located and is otherwise enforceable in such state;

 the
 judgment was rendered by a court competent under the rules of private international law applicable
 in Israel;

 the
 laws of the state in which the judgment was given provides for the enforcement of judgments
 of Israeli courts;

 adequate
 service of process has been effected and the defendant has had a reasonable opportunity to
 present its arguments and evidence;

 the
 judgment and its enforcement are not contrary to the law, public policy, security or sovereignty
 of the State of Israel;

 the
 judgment was not obtained by fraud and does not conflict with any other valid judgment in
 the same matter between the same parties; and

 an
 action between the same parties in the same matter was not pending in any Israeli court at
 the time the lawsuit was instituted in the U.S. court.

 If
any of these conditions are not met, Israeli courts will likely not enforce the applicable U.S. judgment.

 General
Risk Factors

 Changes
to tax laws could have a negative effect on us or our stockholders.

 At
any time, the U.S. federal or state income tax laws, or the administrative interpretations of those laws, may be amended. Federal and
state tax laws are constantly under review by persons involved in the legislative process, the U.S. Internal Revenue Service, the U.S.
Department of the Treasury and state taxing authorities. Changes to the tax laws, regulations and administrative interpretations, which
may have retroactive application, could adversely affect us. Our stockholders are encouraged to consult with their tax advisors about
the potential effects that changes in law may have on them and their ownership of our securities.

 Our
business and operations would suffer in the event of computer system failures, cyber-attacks or deficiencies in our cyber-security.

 Despite
the implementation of security measures, our internal computer systems, and those of third parties on which we rely, are vulnerable to
damage from computer viruses, malware, natural disasters, terrorism, war, telecommunication and electrical failures, cyber-attacks or
cyber-intrusions over the Internet, attachments to emails, persons inside our organization, or persons with access to systems inside
our organization. The risk of a security breach or disruption, particularly through cyber-attacks or cyber intrusion, including by computer
hackers, foreign governments, and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted
attacks and intrusions from around the world have increased. If such an event were to occur and cause interruptions in our operations,
it could result in a material disruption of our product development programs. For example, the loss of clinical trial data from completed
or ongoing or planned clinical trials could result in delays in our clinical trial efforts and significantly increase our costs to recover
or reproduce the data. To the extent that any disruption or security breach was to result in a loss of or damage to our data or applications,
or inappropriate disclosure of confidential or proprietary information, we could incur material legal claims and liability, and damage
to our reputation, and the further development of our product candidates could be delayed.

 We
also maintain compliance programs to address the potential applicability of restrictions against trading while in possession of material,
nonpublic information generally and in connection with a cyber-security breach. However, a breakdown in existing controls and procedures
around our cyber-security environment may prevent us from detecting, reporting or responding to cyber incidents in a timely manner and
could have a material adverse effect on our financial position and value of our stock.

 Our
management will have significant flexibility in using the net proceeds of any offering of securities.

 We
intend generally to use the net proceeds from any offerings of our securities for expenses related to our clinical trials, research and
product development activities, and for general corporate purposes, including general working capital purposes. Our management will have
significant flexibility in applying the net proceeds of any such offering and we will necessarily be using our capital when we decide
on new strategic initiatives. The actual amounts and timing of expenditures will vary significantly depending on a number of factors,
including the amount of cash used in our operations and our research and development efforts. Management's failure to use these
funds effectively would have an adverse effect on the value of our common stock and could make it more difficult and costly to raise
funds in the future.

 Delaware
law could discourage a change in control, or an acquisition of us by a third party, even if the acquisition would be favorable to you,
and thereby adversely affect existing stockholders.

 The
Delaware General Corporation Law contains provisions that may have the effect of making more difficult or delaying attempts by others
to obtain control of the Company, even when these attempts may be in the best interests of stockholders. Delaware law imposes conditions
on certain business combination transactions with "interested stockholders." These provisions and others that could be adopted
in the future could deter unsolicited takeovers or delay or prevent changes in our control or management, including transactions in which
stockholders might otherwise receive a premium for their shares of common stock over then current market prices. These provisions may
also limit the ability of stockholders to approve transactions that they may deem to be in their best interests.

 ITEM
1B. UNRESOLVED STAFF COMMENTS.

 Not
applicable.

 ITEM
1C. CYBERSECURITY.

 The
Board recognizes the critical importance of maintaining the trust and confidence of our business partners, employees and clinical trial
participants. The Audit Committee is responsible for reviewing our policies with respect to cybersecurity risks and relevant contingent
liabilities and risks that may be material to the Company, including risks from third parties and business partners.

 We
generally seek to address cybersecurity risks by implementing security measures on our internal computer systems and ensuring that third
parties and business partners implement similar measures. These security measures include firewalls, intrusion prevention and detection
systems, anti-malware functionality and access controls, which are evaluated by our external IT consultant and improved through vulnerability
assessments and cybersecurity threat intelligence.

 Our
Chief Operating and Business Officer is responsible for implementing protection measures for our information systems from cybersecurity
threats and promptly responding to any cybersecurity incidents.

 To
date, risks from cybersecurity threats have not materially affected us and we do not currently believe any risks from cybersecurity threats
are reasonably likely to affect the Company, including our business strategy, results of operations or financial condition. For further
information, see "Item 1A. Risk Factors," under "Our business and operations would suffer in the event of computer
system failures, cyber-attacks or deficiencies in our cyber-security."

 ITEM
2. PROPERTIES.

 We
believe that our existing facilities are suitable and adequate to meet our current business requirements. In the event that we should
require additional or alternative facilities, we believe that such facilities can be obtained on short notice at competitive rates.

 ITEM
3. LEGAL PROCEEDINGS.

 From
time to time we may become subject to litigation incidental to our business. We are not currently a party to any material legal proceedings.

 ITEM
4. MINE SAFETY DISCLOSURES.

 Not
applicable.

 ITEM 5. MARKET FOR REGISTRANT'S COMMON
EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

 Common Stock

 Our common stock is traded
on the Nasdaq Capital Market and on the Tel Aviv Stock Exchange, in each case under the symbol "ORMP."

 Holders

 As of March 6, 2024, there
were 40,519,160 shares of our common stock issued and outstanding held of record by approximately 38 registered stockholders. We believe
that a significant number of stockholders hold their shares of our common stock in brokerage accounts and registered in the name of stock
depositories and are therefore not included in the number of stockholders of record.

 Unregistered Sales of Equity Securities and
Use of Proceeds

 No unregistered sales of
equity securities were made during the three months ended December 31, 2023.

 ITEM 6. [RESERVED]

 ITEM 7. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 The following discussion
and analysis of our financial condition and results of operations should be read in conjunction with the audited consolidated financial
statements and the related notes included elsewhere herein and in our audited consolidated financial statements.

 In addition to our audited
consolidated financial statements, the following discussion contains forward-looking statements that reflect our plans, estimates and
beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause
or contribute to these differences include those discussed below and elsewhere in this Annual Report on Form 10-K, particularly in "Cautionary
Statement Regarding Forward-Looking Statements" and "Item 1A. Risk Factors."

 Overview of Operations

 We are a pharmaceutical company
engaged in the research and development of innovative pharmaceutical solutions with a technology platform that allows for the oral delivery
of therapeutic proteins.

 We have developed an oral
dosage form intended to withstand the harsh environment of the stomach and effectively deliver active biological insulin or other proteins.
The excipients in the formulation are not intended to modify the proteins chemically or biologically, and the dosage form is designed
to be safe to ingest.

 On January 11, 2023, we announced
that the ORA-D-013-1 Phase 3 trial did not meet its primary or secondary endpoints. As a result, we terminated this trial and a parallel
Phase 3, ORA-D-013-2 clinical trial. In 2023, we completed an analysis of the data from the ORA-D-013-1 Phase 3 trial and found that
subpopulations of patients with pooled specific parameters, such as BMI, baseline HbA1c and age, responded well to oral insulin. Based
on this analysis, we are working on a protocol for a new Phase 3 clinical trial to be submitted to the FDA. We are additionally examining
our existing pipeline and have commenced an evaluation process of potential strategic opportunities, with the goal of enhancing value
for our stockholders.

 On September 21, 2023, we
entered into and consummated the Transaction. Pursuant to the Scilex SPA, in exchange for the DIP Assumption and for the ability to credit
the amounts assumed under the DIP Assumption in exchange for certain equity securities of Scilex owned by Sorrento, Scilex (i) issued
to us (A) the Note, (B) the Closing Penny Warrant, and (C) the Subsequent Penny Warrants, and (ii) caused the Transferred Warrants to
be transferred to us. In addition, on the Closing Date, Scilex reimbursed $1,910,000 of the Company's Transaction expenses pursuant
to the Scilex SPA. For further details, see "Item 1 – Business – Description of Business – Scilex Transaction."

 On January 22, 2024, we entered
into the JV Agreement with HTIT, pursuant to which, subject to the terms and conditions set forth in the JV Agreement, the parties will
establish the JV based on Oramed's oral drug delivery technology. The JV will focus on the development and worldwide commercialization
of innovative products based on Oramed's oral insulin and POD (Protein Oral Delivery) pipeline and HTIT's manufacturing
capabilities and technologies. The parties intend for the JV to use the protocol we are currently working on to initiate a Phase 3 oral
insulin trial in the United States. For further details, see "Item 1 – Business – Research and Development –
Oral Insulin."

 Results of Operations

 The table and discussion
that follows includes a comparison of our results of operations and liquidity and capital resources for the years ended December 31,
2023 and 2022. For a comparison of our results of operations and financial condition for the year ended December 31, 2022 and the year
ended December 31, 2021, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations"
included in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 6, 2023.

 2023

 2022

 (dollar amounts in thousands, except per share data)

 Revenues

 $
 1,340

 $
 2,703

 Cost of revenues

 -

 -

 Research and development expenses

 (8,971
)

 (27,639
)

 Sales and marketing

 (1,851
)

 General and administrative expenses

 (8,425
)

 (13,811
)

 Interest expenses

 (2,037
)

 -

 Financial income (expenses), net

 22,894

 2,934

 Income (loss) before taxes on income

 5,088

 (37,664
)

 Taxes on income

 -

 Net income (loss) for the year

 5,088

 (37,764
)

 Net income (loss) attributable to Company's stockholders

 5,525

 (36,561
)

 Net loss attributable to non-controlling interest

 (437
)

 (1,203
)

 Net income (loss) for the year

 5,088

 (37,764
)

 Basic income (loss) per share of common stock

 $
 0.14

 $
 (0.94
)

 Diluted income (loss) per share of common stock

 $
 0.14

 $
 (0.94
)

 Weighted average shares of common stock outstanding used in computing basic income (loss) per share of common stock

 40,315,068

 38,997,649

 Weighted average shares of common stock outstanding used in computing diluted income (loss) per share of common stock

 40,566,901

 38,997,649

 Revenues

 Revenues consist of proceeds
related to the HTIT License Agreement that are recognized on a cumulative basis when it is probable that a significant reversal in the
amount of cumulative revenue recognized will not occur, through the expected product submission date by HTIT of June 2023, using the
input method.

 Revenues for the year ended
December 31, 2023 decreased by 50% to $1,340,000, compared to $2,703,000 for the year ended December 31, 2022. The decrease was mainly
due to recognition of revenues until the product submission date by HTIT in June 2023.

 Cost of Revenues

 Cost of revenues consists
of royalties related to the HTIT License Agreement that will be paid over the term of the HTIT License Agreement in accordance with revenue
recognition accounting and the Law for the Encouragement of Industrial Research, Development and Technological Innovation, 1984, as amended,
including any regulations or tracks promulgated thereunder, or the R&D Law.

 There was no cost of revenues
for the years ended December 31, 2023 and 2022.

 Research and Development
Expenses

 Research and development
expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, employee
benefits, costs of materials, supplies, the cost of services provided by outside contractors, including services related to our clinical
trials, clinical trial expenses, the full cost of manufacturing drugs for use in research and preclinical development. All costs associated
with research and development are expensed as incurred.

 Clinical trial costs are
a significant component of research and development expenses and include costs associated with third-party contractors. We outsource
a substantial portion of our clinical trial activities, utilizing external entities such as CROs, independent clinical investigators
and other third-party service providers to assist us with the execution of our clinical trials.

 Clinical activities which
relate principally to clinical sites and other administrative functions to manage our clinical trials are performed primarily by CROs.
CROs typically perform most of the start-up activities for our trials, including document preparation, site identification, screening
and preparation, pre-study visits, training and program management.

 Clinical trial and pre-clinical
trial expenses include regulatory and scientific consultants' compensation and fees, research expenses, purchase of materials,
cost of manufacturing of the oral insulin and exenatide capsules, payments for patient recruitment and treatment, as well as salaries
and related expenses of research and development staff.

 Research and development
expenses for the year ended December 31, 2023 decreased by 68% to $8,971,000, compared to $27,639,000 for the year ended December 31,
2022. The decrease was mainly due to a decrease in expenses related to our Phase 3 clinical trials and in stock-based compensation expenses.
Stock-based compensation expenses for the year ended December 31, 2023, were $1,718,000, compared to $3,176,000 for the year ended December
31, 2022. This decrease was mainly due to performance equity awards that expired because they did not meet their performance conditions
during the year ended December 31, 2023 and to awards that were granted and issued during the year ended December 31, 2022.

 Following the results of
the ORA-D-013-1 Phase 3 trial, which did not meet its primary or secondary endpoints, we terminated both ORA-D-013-1 and ORA-D-013-2
Phase 3 clinical trials. In 2023, we completed an analysis of the data from the ORA-D-013-1 Phase 3 trial and found that subpopulations
of patients with pooled specific parameters responded well to oral insulin. Based on this analysis, we are working on a protocol for
a new Phase 3 clinical trial to be submitted to the FDA. We are also examining our existing pipeline and have commenced an evaluation
process of potential strategic opportunities, with the goal of enhancing value for our stockholders.

 Government Grants

 The Government of Israel
encourages research and development projects through the IIA, pursuant to the R&D Law. Under the R&D Law, a research and development
plan that meets specified criteria is generally eligible for a grant of up to 50% of certain approved research and development expenditures.
Each plan must be approved by the IIA.

 From August 2009 to March
2014, our subsidiary Oramed Ltd. was awarded five government grants amounting to a total net amount of NIS 8 million (approximately $2,194,000
during such period) from the IIA. We used these funds to support further research and development and clinical trials of our oral insulin
capsule and oral GLP-1 analog candidate during the period from February 2009 to December 2014. The five grants are subject to repayment
according to the terms determined by the IIA and applicable law.

 In the years ended December
31, 2023 and 2022, we did not recognize any research and development grants. As of December 31, 2023, we had incurred liabilities to pay
royalties to the Israel Innovation Authority of the Israeli Ministry of Economy and Industry of $59,000.

 Under the terms of the grants
we received from the IIA, we are obligated to pay royalties of 3% on all revenues derived from the sale of the products developed pursuant
to the funded plans, including revenues from licensed ancillary services. Royalties are generally payable up to a maximum amount equalling
100% of the grants received (dollar linked) with the addition of interest at an annual rate based on the SOFR rate.

 The R&D Law generally
requires that a product developed under a program be manufactured in Israel. However, when applying for a grant, the applicant may declare
that part of the manufacturing will be performed outside of Israel or by non-Israeli residents and if the IIA is convinced that performing
some of the manufacturing abroad is essential for the execution of the program, it may still approve the grant. This declaration will
be a significant factor in the determination of the IIA as to whether to approve a program and the amount and other terms of the benefits
to be granted. If a company wants to increase the volume of manufacturing outside of Israel after the grant has been approved, it may
transfer up to 10% of the company's approved Israeli manufacturing volume, measured on an aggregate basis, outside of Israel after
first notifying the IIA thereof (provided that the IIA does not object to such transfer within 30 days). In addition, upon the approval
of the IIA, a portion greater than 10% of the manufacturing volume may be performed outside of Israel. In any case of transfer of manufacturing
out of Israel, the grant recipient is required to pay royalties at an increased rate, which may be substantial, and the aggregate repayment
amount is increased up to 120% or 150% of the grant received (dollar linked) with the addition of interest at an annual rate based on
the SOF R rate, depending on the portion of the total manufacturing volume that is performed
outside of Israel. The approval we received from the IIA for the License Agreement was subject to payment of increased royalties and
an increased ceiling, all in accordance with the provisions of the R&D Law. The R&D Law further permits the IIA, among other
things, to approve the transfer of manufacturing rights outside of Israel in exchange for the import of different manufacturing into
Israel as a substitute, in lieu of the increased royalties.

 The R&D Law also provides
that know-how developed under an approved research and development program and any derivatives thereof may not be transferred or licensed
to third parties in Israel without the approval of the research committee, which approval may be subject to the payment of royalties
from the sale. Such approval is not required for the sale or export of any products resulting from such research or development. The
R&D Law further provides that the know-how developed under an approved research and development program and any derivatives thereof
may not be transferred or licensed to any third parties outside Israel absent IIA approval which may be granted in certain circumstances
as follows: (a) the grant recipient pays to the IIA a portion of the sale or license price paid in consideration for the purchase or
license of such IIA-funded know-how or the price paid in consideration for the sale of the grant recipient itself, as the case may be,
in accordance with certain formulas included in the tracks published under the R&D Law; (b) the grant recipient receives know-how
from a third party in exchange for its IIA-funded know-how; or (c) such transfer of IIA-funded know-how is made in the context of IIA
approved research and development cooperation projects or consortia.

 The R&D Law imposes reporting
requirements with respect to certain changes in the ownership of a grant recipient. The R&D Law requires the grant recipient to notify
the IIA of any change in control of the recipient or a change in the holdings of the means of control of the recipient that results in
a non-Israeli entity or person becoming an interested party in the recipient, and requires the new non-Israeli interested party to undertake
to the IIA to comply with the R&D Law. In addition, the rules of the IIA may require the provision of additional information or representations
in respect of certain such events. For this purpose, "control" is defined as the ability to direct the activities of a company
other than any ability arising solely from serving as an officer or director of the company. A person is presumed to have control if
such person holds 50% or more of the means of control of a company. "Means of control" refers to voting rights or the right
to appoint directors or the chief executive officer. An "interested party" of a company includes a holder of 5% or more of
its outstanding share capital or voting rights, its chief executive officer and directors, someone who has the right to appoint its chief
executive officer or at least one director, and a company with respect to which any of the foregoing interested parties holds 25% or
more of the outstanding share capital or voting rights or has the right to appoint 25% or more of the directors.

 Failure to meet the R&D
Law's requirements may subject us to mandatory repayment of grants received by us (together with interest and penalties), as well
as expose us to criminal proceedings. In addition, the Israeli government may from time to time audit sales of products which it claims
incorporate technology funded through IIA programs which may lead to additional royalties being payable on additional products.

 Sales and Marketing
Expenses

 Sales and marketing expenses
include the salaries and related expenses of our commercial functions, consulting costs and other general expenses.

 We recorded sales and marketing
income of $287,000 for the year ended December 31, 2023, compared to expenses of $1,851,000 for the year ended December 31, 2022. This
was primarily due to termination of the employment of an executive officer, which led to the forfeiture of his unvested options and RSUs,
resulting in a reversal of the previously recorded expense. We recorded stock-based compensation income of $440,000 for the year ended
December 31, 2023, compared to expenses of $1,172,000 for the year ended December 31, 2022. This was mainly due to termination of the
employment of an executive officer, which led to the forfeiture of his unvested options and RSUs.

 General and Administrative
Expenses

 General and administrative
expenses include the salaries and related expenses of our management, consulting expenses, legal and professional fees, travel expenses,
business development expenses, insurance expenses and other general expenses.

 General and administrative
expenses for the year ended December 31, 2023 decreased by 39% to $8,425,000, compared to $13,811,000 for the year ended December 31,
2022. The decrease was mainly due to lower stock-based compensation costs and legal expenses, partially offset by higher consulting expenses.
Stock-based compensation expenses for the year ended December 31, 2023 were $2,933,000, compared to $7,160,000 for the year ended December
31, 2022. The decrease was mainly due to equity awards granted to employees during 2022, and performance equity awards that did not meet
their performance conditions during the year ended December 31, 2023.

 Interest Expenses

 Interest expenses were $2,037,000
for the year ended December 31, 2023, while there were no interest expenses for the year ended December 31, 2022. The increase was mainly
due to interest on the Short-Term Borrowings (as defined herein).

 Financial Income, Net

 Net financial income was
$22,894,000 for the year ended December 31, 2023, compared to $2,934,000 for the year ended December 31, 2022. The increase was mainly
due to revaluation of the Transaction (as defined herein), interest from short-term bank deposits and revaluation of non-marketable equity
securities.

 Basic and Diluted Income
and Loss Per Share of Common Stock

 Basic and diluted income per
share of common stock for the year ended December 31, 2023 was $0.14 per share, compared to a basic and diluted loss of $0.94 per share
for the year ended December 31, 2022. This was primarily due to the changes discussed above that caused us to have income in the year
ended December 31, 2023, compared to a loss in the year ended December 31, 2022.

 Weighted Average Shares
of Common Stock Outstanding

 Weighted average shares of common stock outstanding used in computing
basic income (loss) per share of common stock for the year ended December 31, 2023 were 40,315,068 compared to 38,997,649 for the year
ended December 31, 2022. The increase was mainly due to RSUs that vested during the year ended December 31, 2023.

 Weighted average shares of
common stock outstanding used in computing diluted income (loss) per share of common stock for the year ended December 31, 2023 were 40,566,901
compared to 38,997,649 for the year ended December 31, 2022. The increase was mainly due to RSUs that vested during the year ended December
31, 2023.

 For the diluted earnings
per share calculation, the weighted average number of shares outstanding during the year is adjusted for the average number of shares
that are potentially issuable in connection with employee share-based payment, using the treasury stock method.

 Liquidity and Capital Resources

 From our inception through
December 31, 2023, we have incurred losses in an aggregate amount of $157,556,000. During that period and through December 31, 2023,
we have financed our operations through several private placements of our common stock, as well as public offerings of our common stock,
raising a total of $255,384,000, net of transaction costs. During that period, we also received cash consideration of $28,001,000 from
the exercise of warrants and options. We expect to seek additional financing through similar sources in the future, as needed. As of
December 31, 2023, we had $9,055,000 of available cash and $95,279,000 of short-term bank deposits.

 From inception through December
31, 2023, we have not generated significant revenues from our operations. Management continues to evaluate various financing alternatives
for funding new strategic activities, future research and development activities and general and administrative expenses through fundraising
in the public or private equity markets. Although there is no assurance that we will be successful with those initiatives, management
believes that it will be able to secure the necessary financing as a result of future third party investments. Following the termination
of the ORA-D-013-1 and ORA-D-013-2 Phase 3 trials, the Company's research and development activities have been significantly reduced
while it conducted a strategic review process. As a result, we are currently incurring lower research and development and sales and marketing
expenses. We are working on a protocol for a new Phase 3 clinical trial to be submitted to the FDA. Concurrently, we are examining our
existing pipeline and have commenced an evaluation process of potential strategic opportunities.

 Based on our current cash
resources and commitments, we believe we will be able to maintain our current planned activities and the corresponding level of expenditures
for at least the next 12 months, although no assurance can be given that we will not need additional funds prior to such time. If there
are increases in our operating expenses, we may need to seek additional financing during the next 12 months. We may also need additional
funds to realize the decisions made as part of our strategic review process. We cannot predict the outcome of these activities.

 On August 9, 2023, we entered
into the Senior DIP Loan Agreement with the Debtors in the principal amount of $100,000,000.

 On September 21, 2023, we
entered into and consummated the Transaction. Pursuant to the Scilex SPA, in exchange for the DIP Assumption and for the ability to credit
the amounts assumed under the DIP Assumption in exchange for certain equity securities of Scilex owned by Sorrento, Scilex (i) issued
to us (A) the Note, (B) the Closing Penny Warrant, and (C) the Subsequent Penny Warrants, and (ii) caused the Transferred Warrants to
be transferred to us. In addition, on the Closing Date, Scilex reimbursed $1,910,000 of the Company's Transaction expenses pursuant
to the Scilex SPA.

 Pursuant to the terms of
the Scilex SPA, Scilex agreed to certain restrictions on additional issuances of equity securities. In connection with the Transaction,
we and Sorrento mutually agreed to terminate the Sorrento SPA and to release all claims the Company and Sorrento may have against one
another, and Scilex completed the acquisition of the Purchased Securities.

 On August 8, 2023, we borrowed
an aggregate of $99,550,000 pursuant to loan agreements from Israel Discount Bank Ltd., or the Short-Term Borrowings. The Short-Term
Borrowings mature on dates ranging from August 11, 2023 to May 24, 2024, bear interest ranging from 6.66% to 7.38%, are secured by certificates
of deposits issued by Israel Discount Bank Ltd. having an aggregate face amount of $99,550,000. The net proceeds of the Short-Term Borrowings
were used to fund the Note. The Short-Term Borrowings are paid in one payment of principal and interest at each respective maturity.
As of December 31, 2023, $50,000,000 was repaid under the Short-Term Borrowings.

 As of December 31, 2023, our
total current assets were $162,584,000 and our total current liabilities were $53,214,000. On December 31, 2023, we had a working capital
surplus of $109,370,000 and an accumulated loss of $157,556,000. As of December 31, 2022, our total current assets were $157,109,000 and
our total current liabilities were $5,746,000. On December 31, 2022, we had a working capital surplus of $151,363,000 and an accumulated
loss of $163,081,000. The decrease in working capital surplus from December 31, 2022 to December 31, 2023 was mainly due to the Short-Term
Borrowings.

 During the year ended December
31, 2023, cash and cash equivalents decreased to $9,055,000 from $40,464,000 as of December 31, 2022. The decrease was mainly due to
the reasons described below.

 Operating activities used
cash of $10,295,000 in the year ended December 31, 2023, compared to $27,918,000 used in the year ended December 31, 2022. Cash used
in operating activities consisted mainly of changes in fair value of investments partially offset by net loss resulting from research
and development and general and administrative expenses.

 Investing activities used
cash of $73,038,000 in the year ended December 31, 2023, compared to cash provided by investing activities of $30,211,000 in the year
ended December 31, 2022. Cash used in investing activities is mainly due to our investment in the Transaction and the purchase of short-term
deposits, partially offset by the proceeds of short-term deposits.

 Financing activities provided
cash of $51,978,000 in the year ended December 31, 2023, compared to $10,779,000 in the year ended December 31, 2022. Cash provided by
financing activities consisted mainly of the Short-Term Borrowings. Our primary financing activities since the beginning of the year
ended December 31, 2023, were as follows:

 During the year ended December 31,
 2023, no warrants and options were exercised. During the year ended December 31, 2022, 4,200
 warrants were exercised and 71,607 options were exercised, resulting in the issuance of 38,651
 shares of common stock. Out of these exercised options, 10,750 options were exercised for
 cash and 60,857 via a cashless method. The cash consideration received for the exercise of
 options and warrants was $62,490.

 During the year ended December 31, 2023, we received $5,156,000 of income, mainly from interest on short-term and long-term deposits. During the year ended December 31, 2022, we received $1,844,000 of income, mainly from interest on short-term and long-term deposits.

 On September 1, 2021, we entered
 into a controlled equity offering agreement, or the Cantor Equity Distribution Agreement,
 with Cantor Fitzgerald & Co., as agent, pursuant to which we may issue and sell shares
 of our common stock having an aggregate offering price of up to $100,000,000, through a sales
 agent, subject to certain terms and conditions. Any shares sold will be sold pursuant to
 our effective shelf registration statement on Form S-3, including a prospectus dated July
 26, 2021 and prospectus supplement dated September 1, 2021. We paid the sales agent a cash
 commission of 3.0% of the gross proceeds of the sale of any shares sold through the sales
 agent under the Cantor Equity Sales Agreement. As of December 31, 2023 and through March
 6, 2024, 1,971,447 shares were issued under the Cantor Equity Distribution Agreement for
 aggregate net proceeds of $26,253,000.

 Trend Information

 Following the results of
the Phase 3 trials for our oral insulin capsule candidate, ORMD-0801, we conducted a comprehensive analysis of the data to understand
if there is a path forward for our oral insulin candidate, and we are working on a protocol for a new Phase 3 clinical trial to be submitted
to the FDA. Conducting this clinical trial, whether independently or as part of the JV with HTIT, will require significant funds and
resources. Concurrently, we are examining our existing pipeline and have commenced an evaluation process of potential strategic opportunities,
with the goal of enhancing value for our stockholders. At this time, we cannot foresee how these strategic decisions will impact our
financial results and operations in 2024.

 Planned Expenditures

 In previous years, we primarily
invested in research and development. If we proceed to conduct a new clinical trial for our oral insulin candidate, we expect that in
the upcoming years our research and development expenses will continue to be our major operating expense; however, if this clinical trial
is conducted through the JV with HTIT, this cost may be borne by the JV.

 Following the results of
the Phase 3 trials for our oral insulin capsule candidate, ORMD-0801, the JV with HTIT and the current strategic review initiated by
the Company, our obligations may change significantly.

 Critical Accounting Policies

 Our significant accounting
policies are more fully described in the notes to our accompanying consolidated financial statements. We believe that the accounting
policies below are critical for one to fully understand and evaluate our financial condition and results of operations.

 The discussion and analysis
of our financial condition and results of operations is based on our consolidated financial statements, which we prepared in accordance
with U.S. generally accepted accounting principles, or GAAP. The preparation of our consolidated financial statements requires us to
make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the consolidated financial statements, as well as the reported revenues and expenses during the reporting
periods. On an ongoing basis, we evaluate such estimates and judgments. We base our estimates on historical experience and on various
other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about
the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates
under different assumptions or conditions.

 Valuation of RSUs,
options and warrants: We grant options to purchase shares of our common stock to employees and consultants and have and may in
the future issue warrants in connection with some of our financings and to certain other consultants.

 We account for share-based
payments to employees, directors and consultants in accordance with the guidance that requires awards classified as equity awards to
be accounted for using the grant-date fair value method. The fair value of share-based payment transactions is based on the Black Scholes
option-pricing model or Monte Carlo model when appropriate and is recognized as an expense over the vesting period.

 We elected to recognize compensation
cost for awards to employees, directors and consultants that have a graded vesting schedule using the accelerated method based on the
multiple-option award approach.

 Revenue recognition:
Revenue is recognized when delivery has occurred, evidence of an arrangement exists, title and risks and rewards for the products are
transferred to the customer and collection is reasonably assured.

 On November 13, 2022, we
entered into a distribution license agreement with Medicox, or the Medicox License Agreement. The Medicox License Agreement grants Medicox
an exclusive license to apply for regulatory approval and distribute ORMD-0801 in the Republic of Korea.

 Under Accounting Standards
Certification, or ASC, 606 "Revenue from Contracts with Customers", we identified Medicox as a customer and the Medicox License
Agreement as a contract with a customer.

 We identified a performance
obligation in the Medicox License Agreement to stand-ready and provide Medicox with support in its commercialization efforts in the Republic
of Korea. This performance obligation includes a non-distinct distribution license for ORMD-0801, which we view a predominant item in
the combined performance obligation. We concluded that the license is not distinct, as no party other than us is capable of providing
related services to Medicox, and both the license and related services are necessary for the customer to obtain a regulatory approval
in the Republic of Korea. In addition, the agreement covers the terms of future manufacturing services, that are contingent on the completion
and success of the commercialization efforts.

 The Medicox License Agreement
contains a fixed consideration of $2 million, which was received by Oramed as of December 31, 2023 and is presented under long-term deferred
revenues. It also contains variable consideration of contractual milestone payments and sales-based royalties.

 Our obligation to stand-ready
and support Medicox will be recognized on a straight-line basis over the period we expect to provide support to Medicox. As of December
31, 2023, this support has not commenced, and no revenue was recognized from the Medicox License Agreement.

 If Medicox proceeds with
the regulatory approval process in the Republic of Korea, we expect most of the revenue to be recognized in 2025, going forward. We note
that our Phase 3 trial did not meet its primary or secondary endpoints. If Medicox chooses to terminate the agreement as a result of
the outcome of the Phase 3 trials, we will accelerate revenue recognition and recognize it in the relevant period.

 Investments at fair
value: On September 21, 2023. Scilex (i) issued to us (A) the Note, (B) the Closing Penny Warrant, and (C) the Subsequent Penny
Warrants, and (ii) caused the Transferred Warrants to be transferred to us.

 We accounted for the Transferred
Warrants as derivatives measured at fair value.

 We elected the fair value
option for the Note and the Penny Warrants in order to reduce operational complexity of bifurcating embedded derivatives. Changes in
value are recorded under financial income, net and include interest income on the Note.

 Determining the fair value
of the Note required significant judgment with regards to the expected repayment date of the Note which also impacts the number of Subsequent
Penny Warrants to be issued to us. The total value of the Transaction (and of each of its components) was valued on a weighted average
of the different scenarios.

 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK.

 We are exposed to a variety
of risks, including changes in interest rates, foreign currency exchange rates, changes in the value of our marketable securities and
inflation.

 As of December 31, 2023,
we had $9.1 million in cash and cash equivalents and $95.3 million in short term bank deposits.

 We aim to preserve our financial
assets, maintain adequate liquidity and maximize return while minimizing exposure to market risks. Such policy further provides that
we should hold most of our current assets in bank deposits. As of today, the currency of our financial assets is mainly in U.S. dollars.

 Marketable securities

 We own 1,701,357 common shares
of DNA, 117,000 ordinary shares of Entera and 4,500,000 Closing Penny Warrants, which are presented in our financial statements as marketable
securities. Marketable securities are presented at fair value and their realization is subject to certain limitations if sold through
the market, and we are therefore exposed to market risk. There is no assurance that at the time of sale of the marketable securities
the price per share will be the same or higher, nor that we will be able to sell all of the securities at once given the volume of securities
we hold. Entera shares and the Closing Penny Warrants are traded on Nasdaq in U.S. dollars, while DNA shares are traded on the Tel Aviv
Stock Exchange in NIS. We are also exposed to changes in the market price of the Entera, DNA shares and the Closing Penny Warrants, as
well as to exchange rates fluctuations in the NIS currency compared to the U.S. dollar with respect to the DNA shares.

 Interest Rate Risk

 We invest a major portion
of our cash surplus in bank deposits in banks in Israel. Since the bank deposits typically carry fixed interest rates, financial income
over the holding period is not sensitive to changes in interest rates, but only the fair value of these instruments. However, our interest
gains from future deposits may decline in the future as a result of changes in the financial markets.

 The Note issued by Scilex
is based on the SOFR rate. Our interest income may decline in the future as a result of a change in the SOFR rate.

 Foreign Currency Exchange Risk

 A significant portion of our
expenditures, including salaries, clinical research expenses, consultants' fees and office expenses relate to our operations in
Israel. The cost of those Israeli operations, as expressed in U.S. dollars, is influenced by the extent to which any increase in the rate
of inflation in Israel is not offset (or is offset on a lagging basis) by a devaluation of the NIS in relation to the U.S. dollar. If
the U.S. dollar declines in value in relation to the NIS, it will become more expensive for us to fund our operations in Israel. In addition,
as of December 31, 2023, we own net balances in NIS of approximately $546,000. Assuming a 10% appreciation of the NIS against the U.S.
dollar, we would experience an exchange rate gain of approximately $50,000, while assuming a 10% devaluation of the NIS against the U.S.
dollar, we would experience an exchange rate loss of approximately $61,000.

 The exchange rate of the
U.S. dollar to the NIS, based on exchange rates published by the Bank of Israel, was as follows:

 Year Ended

 2023

 2022

 Average rate for period

 3.69

 3.358

 Rate at period-end

 3.627

 3.519

 We do not use any currency
hedging transactions of options or forwards to decrease the risk of financial exposure from fluctuations in the exchange rate of the
U.S. dollar against the NIS.

 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA.

 See Item 15 of this Annual
Report on Form 10-K.

 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH
ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

 None.

 ITEM 9A. CONTROLS AND PROCEDURES.

 Disclosure Controls and Procedures

 Our management, including
our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of
December 31, 2023. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure
controls and procedures are effective.

 Management's Annual Report on Internal
Control over Financial Reporting

 Our management, under the
supervision of our Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal
control over our financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act. The Company's
internal control over financial reporting is defined as a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Internal control over
financial reporting includes policies and procedures that:

 pertain to the maintenance of records
 that in reasonable detail accurately and fairly reflect our transactions and asset dispositions;

 provide reasonable assurance that
 transactions are recorded as necessary to permit the preparation of our financial statements
 in accordance with GAAP, and that our receipts and expenditures are being made only in accordance
 with authorizations of our management and directors; and

 provide reasonable assurance regarding
 the prevention or timely detection of unauthorized acquisition, use or disposition of assets
 that could have a material effect on our financial statements.

 Under the supervision and
with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness
of our internal control over financial reporting as of December 31, 2023 based on the current framework for Internal Control-Integrated
Framework (2013) set forth by The Committee of Sponsoring Organizations of the Treadway Commission.

 Based on this evaluation,
our management concluded that the Company's internal control over financial reporting was effective as of December 31, 2023 at
a reasonable assurance level.

 Changes in Internal Control over Financial
Reporting

 There were no changes in
our internal control over financial reporting that occurred during the quarter ended December 31, 2023 that have materially affected,
or are reasonable likely to materially affect, our internal control over financial reporting.

 ITEM 9B. OTHER INFORMATION.

 Termination of Rule 10b5–1 Trading Arrangements

 On January 8, 2024, Mr. David
Silberman, our Chief Financial Officer, terminated a trading plan before expiration that was previously entered into to satisfy the affirmative
defense of Rule 10b5–1(c) under the Exchange Act. This plan was entered into on June 25, 2023 and was meant to expire upon the
earlier of May 15, 2024 or when 128,625 of Oramed's shares of common stock were sold, which was the aggregate maximum number of
shares to be sold under the plan.

 On January 8, 2024, Mr. Joshua
Hexter, our Chief Operating and Business Officer, terminated a trading plan before expiration that was previously entered into to satisfy
the affirmative defense of Rule 10b5–1(c) under the Exchange Act. This plan was entered into on June 28, 2023 and was meant to
expire upon the earlier of June 27, 2025 or when 245,333 of Oramed's shares of common stock were sold, which was the aggregate
maximum number of shares to be sold under the plan.

 On February 6, 2024, Mr. Netanel
Derovan, our former Chief Legal Officer, terminated a trading plan before expiration that was previously entered into to satisfy the affirmative
defense of Rule 10b5–1(c) under the Exchange Act. This plan was entered into on June 8, 2023 and was meant to expire upon the earlier
of June 28, 2024 or when 88,250 of Oramed's shares of common stock were sold, which was the aggregate maximum number of shares to
be sold under the plan.

 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS
THAT PREVENT INSPECTIONS.

 Not applicable.

 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND
CORPORATE GOVERNANCE.

 Directors and Executive Officers

 The name and age of each
of our directors and executive officers, his or her position with us and the period during which such person has served as a director
or executive officer of the Company are set forth below.

 Name

 Age

 Position

 Serving Since

 Nadav Kidron

 President, Chief Executive Officer, Director and Chairman (effective as of June 30, 2022)

 2006

 Dr. Miriam Kidron

 Chief Scientific Officer and Director

 2006

 David Silberman

 Chief Financial Officer and Treasurer

 2021

 Joshua Hexter

 Chief Operating & Business Officer

 2019

 Daniel Aghion

 2024

 Dr. Arie Mayer

 2019

 Leonard Sank

 2007

 Benjamin Shapiro

 2023

 Mr. Derovan, our former Chief Legal Officer and Secretary, ended
his service with the Company on March 5, 2024.

 Dr. Miriam Kidron is Mr.
Nadav Kidron's mother. There are no other directors or officers of the Company who are related by blood or marriage.

 Business Experience

 The following is a brief
account of the education and business experience during at least the past five years of each of our directors and of our executive officers
who are not also directors, indicating the principal occupation during that period, and the name and principal business of the organization
in which such occupation and employment were carried out.

 Mr. Nadav Kidron was
appointed President, Chief Executive Officer and director in March 2006, and Chairman of the Board
effective as of June 30, 2022. He is also a director of Israel Advanced Technology Industries organization, and until 2016 was a director
of Entera Bio Ltd. In 2009, he was a fellow at the Merage Foundation for U.S.-Israel Trade Programs for executives in the life sciences
field. From 2003 to 2006, he was the managing director of the Institute of Advanced Jewish Studies at Bar Ilan University. From 2001
to 2003, he was a legal intern at Wine, Mishaiker & Ernstoff Law Offices in Jerusalem, Israel. Mr. Kidron holds an LL.B. and an International
MBA from Bar Ilan University, Israel.

 We believe that Mr. Kidron's
qualifications to serve on our Board include his familiarity with the Company as its founder, his experience in capital markets, as well
as his knowledge and familiarity with corporate management.

 Dr. Miriam Kidron was
appointed Chief Scientific Officer and director in March 2006. Dr. Kidron is a pharmacologist and a biochemist
with a Ph. D. in biochemistry. From 1990 to 2007, Dr. Kidron was a senior researcher in the Diabetes Unit at Hadassah University Hospital
in Jerusalem, Israel. Dr. Kidron was formerly a visiting professor at the Medical School at the University of Toronto (Canada), and is
a member of the American, European and Israeli Diabetes Associations. Dr. Kidron is a recipient of the Bern Schlanger Award.

 We believe that Dr. Kidron's
qualifications to serve on our Board include her expertise in the Company's technology, as it is based on her research, as well
as her experience and relevant education in the fields of pharmacology and diabetes.

 Mr. David Silberman was
appointed Chief Financial Officer and Treasurer in July 2021. Prior to his appointment, from April 2018 to May 2021,
Mr. Silberman served as a Corporate Financial Planning and Analysis associate director and director at Teva Pharmaceutical Industries
Ltd., a global pharmaceutical company, committed to helping patients around the world to access affordable medicines and benefit from
innovations to improve their health. From 2014 to 2018, Mr. Silberman served as Global Internal Audit senior manager at Teva Pharmaceutical
Industries Ltd. From 2009 to 2014, Mr. Silberman provided internal audit and risk management services in the advisory department of Grant
Thornton Fahn Kanne Control Management. From January 2009 until June 2009, Mr. Silberman worked in the audit department of KPMG, a certified
public accounting firm. Mr. Silberman holds DCG and DSCG degrees from the French Ministry of Higher Study and Research and is a certified
public accountant in Israel.

 Mr. Joshua Hexter was
appointed Chief Operating and Business Officer in September 2019. Prior to his appointment, Mr. Hexter served as Chief
Business Officer at BrainsWay Ltd. (Nasdaq/TASE: BWAY) from 2018 to 2019, a commercial stage medical device company focused on the development
and sale of non-invasive neuromodulation products. From 2013 to 2018, Mr. Hexter served as Chief Operating Officer and VP Business Development
of the Company and from 2007 to 2013, Mr. Hexter was a Director or Executive Director of BioLineRx Ltd. (Nasdaq/TASE: BLRX), a biopharmaceutical
development company dedicated to identifying, in-licensing and developing innovative therapeutic candidates. Prior to his employment
with BioLineRx, Mr. Hexter was a member of the board of directors and Chief Executive Officer of Biosensor Systems Design, Inc., a company
developing market-driven biosensors. Mr. Hexter holds a bachelor's degree from the University of Wisconsin and a master's
degree in management from Boston University.

 Dr. Daniel Aghion
became a director in January 2024. Dr. Aghion has been a neurosurgeon at Memorial Neuroscience Institute in Florida since
2016, where he treats patients with a wide array of spine disorders, including severe degenerative spine diseases, spine trauma, cancer
in the spine, spine tumors, peripheral nerve surgery and more. Dr. Aghion holds a Bachelor of Science degree from the University of Michigan
and an MD from the Sackler School of Medicine at Tel Aviv University. He completed his residency at Rhode Island Hospital in 2015, and
a complex spine fellowship at Johns Hopkins University in Baltimore in 2016.

 We believe that Dr. Aghion's qualifications
to serve on the Board include his extensive practical and academic medical background.

 Dr. Arie Mayer
became a director in December 2019. Dr. Mayer is currently the Managing Director and Chairman of the Board of Sigma-Aldrich
Israel Ltd. and has held that position since January 2010. Dr. Mayer has held various roles with Sigma-Aldrich Israel Ltd. since 1995
and was instrumental in introducing and developing the Cell Culture and Molecular Biology business for Sigma Aldrich Israel Ltd. Dr.
Mayer holds a Bachelor of Science degree in chemistry from Hebrew University and a Ph. D. in biochemistry from Israel Institute of Technology.

 We believe that Dr. Mayer's
qualifications to serve on our Board include his experience as an executive in the biotechnology industry, with knowledge in managing
large organizations, as well as his experience and relevant education in the fields of chemistry and biochemistry.

 Mr. Leonard Sank
became a director in October 2007. Mr. Sank is a South African entrepreneur and businessman, whose interests lie in entrepreneurial
endeavors and initiatives, with over 30 years' experience of playing significant leadership roles in developing businesses. Mr.
Sank serves on the boards of a few national businesses and local non-profit charity organizations in Cape Town, where he resides.

 We believe that Mr. Sank's
qualifications to serve on our Board include his years of experience in development stage businesses, as well as his experience serving
as a director of many entities.

 Mr. Benjamin Shapiro
 became a director in May 2023. Mr. Shapiro is a successful entrepreneur and business professional who co-founded
The Daily Wire, a successful, industry leading, international media outlet in June 2015. Since May 2015, he has been host of "The
Ben Shapiro Show," a popular podcast, and he is the author of numerous New York Times best-selling books. Mr. Shapiro earned a
B.A. in Political Science from UCLA in 2004, summa cum laude, and a law degree from Harvard Law School in 2007, cum laude.

 We believe that Mr. Shapiro's
qualifications to serve on the Board include his extensive operational experience and his business background and acumen.

 Board of Directors

 There are no agreements with
respect to the election of directors. Each director is currently elected for a period of one year at our annual meeting of stockholders
and serves until the next such meeting and until his or her successor is duly elected or until his or her earlier resignation or removal.
The Board may also appoint additional directors. A director so chosen or appointed will hold office until the next annual meeting of
stockholders and until his or her successor is duly elected and qualified or until his or her earlier resignation or removal.

 The Board has determined
that Dr. Daniel Aghion, Dr. Arie Mayer, Leonard Sank and Benjamin Shapiro are independent as defined under the rules promulgated by the
Nasdaq. Except for Dr. Arie Mayer, who serves on the Board of Directors of Oravax, a company 63% owned by us, none of the independent
directors has any material relationship with us besides serving on our Board.

 We have determined that each
of the directors is qualified to serve as a director of the Company based on a review of the experience, qualifications, attributes and
skills of each director. In reaching this determination, we have considered a variety of criteria, including, among other things: character
and integrity; ability to review critically, evaluate, question and discuss information provided, to exercise effective business judgment
and to interact effectively with the other directors; and willingness and ability to commit the time necessary to perform the duties
of a director.

 Board Meeting Attendance

 During the fiscal year ended
December 31, 2023, our Board held thirteen meetings and took action by written consent on eight occasions. All of our directors attended
at least 75% of the aggregate number of meetings of the Board and the committees that were held during the period such director served
on the Board. Board members are encouraged to attend our annual meetings of stockholders.

 Board Evaluation Process

 Our Board is committed to
continuous improvement and conducts a board and committee evaluation process each year, to ensure that our Board maintains optimal composition
and functions effectively.

 As part of this process,
the members of our Board complete a confidential written assessment of the performance, oversight and composition of the Board and its
committees that is submitted to the Company secretary. The results are then reported back to the full Board. After the evaluations, the
Board and management work to improve upon any issues presented during the evaluation process and to identify opportunities that may lead
to further improvement.

 Committees

 Audit Committee and Audit Committee Financial
Expert

 The members of our Audit
Committee are Dr. Daniel Aghion, Dr. Arie Mayer and Leonard Sank. Our Board has determined that Dr. Arie Mayer is an "audit committee
financial expert" as set forth in Item 407(d)(5) of Regulation S-K based on his experience as set forth above, and that all members
of the Audit Committee are "independent" as defined by the rules of the SEC and the Nasdaq rules and regulations. The Audit
Committee operates under a written charter that is posted on the "Investors" section of our website, www.oramed.com. The
primary responsibilities of our Audit Committee include:

 Overseeing the accounting and financial
 reporting processes of the Company and the audits of the financial statements of the Company;

 Appointing, compensating and retaining
 our registered independent public accounting firm;

 Overseeing the work performed by
 any outside accounting firm;

 Assisting the Board in fulfilling
 its responsibilities by reviewing: (i) the financial reports provided by us to the SEC, our
 stockholders or to the general public and (ii) our internal financial and accounting controls;

 Reviewing the Company's policies
 with respect to cyber security risks and relevant contingent liabilities and risks that may
 be material to the Company;

 Recommending, establishing and monitoring
 procedures designed to improve the quality and reliability of the disclosure of our financial
 condition and results of operations; and

 Reviewing major financial risk exposures
 and the steps management has taken to monitor and control such exposures, and discussing
 the guidelines and polices to govern the process by which risk assessment and management
 is undertaken.

 Our Audit Committee met five
times and took action by written consent on four occasions during the fiscal year ended December 31, 2023.

 Compensation Committee

 The members of our Compensation
Committee are Dr. Daniel Aghion, Dr. Arie Mayer and Leonard Sank. The Board has determined that all of the members of the Compensation
Committee are "independent" as defined by the rules of the SEC and Nasdaq rules and regulations. The Compensation Committee
operates under a written charter that is posted on the "Investors" section of our website, www.oramed.com. The primary responsibilities
of our Compensation Committee include:

 Reviewing, negotiating and approving,
 or recommending for approval by our Board the salaries and incentive compensation of our
 executive officers;

 Administering our equity based plans
 and making recommendations to our Board with respect to our incentive-compensation plans
 and equity-based plans;

 Making recommendations to our Board
 with respect to director compensation; and

 Authority to exercise all rights,
 authority and functions of the Board under our Clawback Policy.

 The Compensation Committee
meets as often as it deems necessary, without the presence of any executive officer when approving compensation, except that the Company's
Chief Executive Officer, at the discretion of the Compensation Committee, may be present during the approval of, or deliberations with
respect to, the compensation of other executive officers. The Compensation Committee may delegate any authority granted to it to one
or more subcommittees of the Compensation Committee, in its sole discretion.

 Our Compensation Committee
met four times and took action by written consent on four occasions during the fiscal year ended December 31, 2023.

 Nominating Committee

 The members of our Nominating
Committee are Dr. Arie Mayer and Leonard Sank. The Board has determined that all of the members of the Nominating Committee are "independent"
as defined by the rules of the SEC and Nasdaq rules and regulations. The Nominating Committee operates under a written charter that is
posted on the "Investors" section of our website, www.oramed.com. The primary responsibilities of our Nominating Committee
include:

 Overseeing the composition and size
 of the Board, developing qualification criteria for Board members based on background, skills,
 experience and diversity, and actively seeking, interviewing and screening individuals qualified
 to become Board members for recommendation to the Board;

 Recommending the composition of the
 Board for each annual meeting of stockholders; and

 Reviewing periodically with the Chairman
 of the Board and the Chief Executive Officer the succession plans relating to positions held
 by directors, and making recommendations to the Board with respect to the selection and development
 of individuals to occupy those positions.

 Our Nominating Committee
met twice and took action by written consent on one occasion during the fiscal year ended December 31, 2023.

 Delinquent Section 16(a) Reports

 Based solely upon a review
of Forms 3, 4 and 5, and amendments thereto, furnished to us during the fiscal year ended December 31, 2023, we believe that during the
fiscal year ended December 31, 2023, our executive officers, directors and all persons who own more than ten percent of a registered
class of our equity securities complied with all Section 16(a) filing requirements, except that our directors and officers failed to
timely file a Form 4 reporting their annual equity grants granted on April 17, 2023, due to a technical issue. The Form 4s reporting
these grants were filed on April 20, 2023.

 Code of Ethics

 We have adopted a Code of
Ethics and Business Conduct for our senior officers, directors and employees. A copy of the Code of Ethics and Business Conduct is located
at our website at www.oramed.com. We intend to satisfy the disclosure requirement regarding any amendment to, or a waiver from, a provision
of the Code of Ethics that applies to our Chief Executive Officer, Chief Financial Officer or controller, or persons performing similar
functions and that relates to the Code of Ethics by posting such information on our website, www.oramed.com.

 ITEM 11. EXECUTIVE COMPENSATION.

 Compensation Discussion and Analysis

 This section explains the
policies and decisions that shape our executive compensation program, including its specific objectives and elements, as it relates to
our "named executive officers," or NEOs.

 Our NEOs for the year ended
December 31, 2023 are those three individuals listed in the "Summary Compensation Table" below. The Compensation Committee
believes that our executive compensation is appropriately designed to incentivize our NEOs to work for our long-term prosperity, is reasonable
in comparison with the levels of compensation provided by comparable companies and reflects a reasonable cost. We believe our NEOs are
critical to the achievement of our corporate goals, through which we can drive stockholder value.

 The Compensation Committee
of our Board is comprised solely of independent directors as defined by Nasdaq and non-employee directors as defined by Rule 16b-3 under
the Securities Exchange Act of 1934, as amended, or the Exchange Act. The Compensation Committee has the authority and responsibility
to review and approve the compensation of our President and Chief Executive Officer and other executive officers. Other information concerning
the structure, roles and responsibilities of our Compensation Committee is set forth in "Board Meetings and Committees—Compensation
Committee" section.

 Our executive compensation
program and our NEOs' compensation packages are designed around the following objectives:

 attract, hire, and retain talented
 and experienced executives;

 motivate, reward and retain executives
 whose knowledge, skills and performance are critical to our success;

 ensure fairness among the executive
 management team via recognizing the contributions of each executive to our success;

 focus executive behavior on achievement
 of our corporate objectives and strategy; and

 align the interests of management
 and stockholders by providing management with longer-term incentives through equity ownership.

 The Compensation Committee
reviews the allocation of compensation components regularly to ensure alignment with strategic and operating goals, competitive market
practices and legislative changes. The Compensation Committee does not apply a specific formula to determine the allocation between cash
and non-cash forms of compensation. Certain compensation components, such as base salaries, benefits and perquisites, are intended primarily
to attract, hire, and retain well-qualified executives. Other compensation elements, such as long-term incentive opportunities, are designed
to motivate and reward performance. Long-term incentives are intended to reward NEOs for our long-term performance and executing our
business strategy, and to strongly align NEOs' interests with those of stockholders.

 With respect to equity compensation,
the Compensation Committee makes awards to executives under our Amended and Restated 2019 Incentive Plan, or the 2019 Plan. Executive
compensation is paid or granted based on such matters as the Compensation Committee deems appropriate, including our financial and operating
performance and the alignment of the interests of the executive officers and our stockholders.

 Elements of Compensation

 Our executive officer compensation
program is comprised of: (i) base salary or monthly compensation; (ii) discretionary bonus; (iii) long-term equity incentive compensation
in the form of stock option and RSU grants; and (iv) benefits and perquisites.

 In establishing overall executive
compensation levels and making specific compensation decisions for our NEOs in the year ended December 31, 2023, the Compensation Committee
considered a number of criteria, including the executive's position, scope of responsibilities, prior base salary and annual incentive
awards and expected contribution.

 Generally, our Compensation
Committee reviews and, as appropriate, approves compensation arrangements for the NEOs from time to time but not less than once each
year. The Compensation Committee also takes into consideration the President and Chief Executive Officer's recommendations for
executive compensation of the other NEOs. The President and Chief Executive Officer generally presents these recommendations at the time
of our Compensation Committee's review of executive compensation arrangements.

 During the fiscal year ended
December 31, 2023, the Compensation Committee received consulting services from Aon Solutions UK Limited., or Aon, with regard to management
compensation. The Compensation Committee engaged the consultant to review the Company's current compensation plans for its management
and collect and analyze data regarding management compensation at other companies comparable to the Company, in order to provide a competitive
compensation benchmark. Aon collected SEC filings data regarding U.S. and Israeli compensation practices and developed a peer group of
the following U.S. and Israeli companies: ALX Oncology Holdings Inc., Anavex Life Sciences Corp., Arbutus BioPharma Corporation, Atossa
Therapeutics Inc., aTyr Pharma, Inc., Chimerix, Inc., Compugen Ltd., Fulcrum Therapeutics, Inc., Gamida Cell Ltd., Immunic, Inc., Lyra
Therapeutics, Inc., Marinus Pharmaceuticals, Inc., MediciNova, Inc., Minerva Neurosciences, Inc., Rani Therapeutics, Inc., Relmada Therapeutics,
Inc., Vistagen Therapeutics, Inc. and Zevra Therapeutics, Inc.. Following its review, Aon provided recommendations for cash and equity
compensation at various percentiles for the Compensation Committee's consideration.

 Base Salary

 The Compensation Committee
performs a review of base salaries and monthly compensation for our NEOs from time to time as appropriate. In determining salaries, the
Compensation Committee members also take into consideration the scope of the NEOs' responsibilities and independent third-party
market data, such as compensation surveys to industry, individual experience and performance and contribution to our clinical, regulatory,
commercial and operational performance. None of the factors above has a dominant weight in determining the compensation of our NEOs,
and our Compensation Committee considers the factors as a whole when considering such compensation. In addition, our Compensation Committee
uses comparative data regarding compensation paid by peer companies in order to obtain a general understanding of current trends in compensation
practices and ranges of amounts being awarded by other public companies, and not as part of an analysis or a formula.

 We believe that a competitive
base salary and monthly compensation is a necessary element of any compensation program that is designed to attract and retain talented
and experienced executives. We also believe that attractive base salaries can motivate and reward executives for their overall performance.
Base salary and monthly compensation are established in part based on the individual experience, skills and expected contributions to
our performance, as well as such executive's performance during the prior year. Generally, we believe that executives' base
salaries should be targeted near the median of the range of salaries for executives in similar positions with similar responsibilities,
experience and performance at comparable companies. Compensation adjustments are made occasionally based on changes in an executive's
level of responsibility, company progress or on changed local and specific executive employment market conditions.

 In the year ended December
31, 2023, our Compensation Committee increased the base salary of one of our NEOs by 10% (effective January 1, 2023) as it deemed this
to be a reasonable rate based on, among other factors, such NEO's responsibilities and the report received from Deloitte Israel
& Co. during the year ended December 31, 2022, as it determined the salary was not in line with market compensation.

 In January 2024, our Compensation
Committee increased the base salary of our NEOs by 10% (effective January 1, 2024, and in the case of our Chief Financial Officer, 5%
effective January 1, 2024 and an additional 5% effective June 1, 2024) as it deemed this to be a reasonable rate based on, among other
factors, such NEO's responsibilities and the report from Aon, as it determined the salary was not in line with market compensation.

 Performance Based Bonus

 Our NEOs are eligible to
receive discretionary annual bonuses based upon performance. The amount of annual bonus to our NEOs is based on various factors, including,
among others, the achievement of scientific and business goals and our financial and operational performance. The Compensation Committee
takes into account the overall performance of the individuals, as well as the overall performance of the Company over the period being
reviewed and the recommendation of management. For any given year, the compensation objectives vary, but relate generally to strategic
factors such as developments in our clinical path, the execution of a license agreement for the commercialization of product candidates,
the establishment of key strategic collaborations, the build-up of our pipeline and financial factors such as capital raising. Bonuses
are awarded generally based on corporate performance, with adjustments made within a range for individual performance, at the discretion
of the Compensation Committee. The Compensation Committee determines, on a discretionary basis, the size of the entire bonus pool and
the amount of the actual award to each NEO. The overall payment is also based on historic compensation of the NEOs.

 We believe that annual bonuses
payable based on the achievement of short-term corporate goals incentivize our NEOs to create stockholder value and attain short-term
performance objectives.

 Long-Term Equity Incentive Compensation

 Long-term incentive compensation
allows the NEOs to share in any appreciation in the value of our common stock. The Compensation Committee believes that stock participation
aligns executive officers' interests with those of our stockholders. Equity incentive awards are generally made at the commencement
of employment and following a significant change in job responsibilities, or to meet other special retention or performance objectives.
The amounts of the awards are designed to reward past performance and create incentives to meet long-term objectives. Awards are made
at a level expected to be competitive within the biotechnology industry, as well as with Israeli-based companies. Awards are made on
a discretionary basis and not pursuant to specific criteria set out in advance. In determining the amount of each grant, the Compensation
Committee also takes into account the number of shares held by the executive prior to the grant. The vesting schedule for NEOs generally
provides for annual installments for new grants, though the Compensation Committee also utilizes quarterly vesting from time to time,
as well as performance-based vesting. The Compensation Committee believes that time-based vesting encourages recipients to build stockholder
value over a long period of time and that performance-based vesting encourages recipients to achieve goals that benefit the Company.

 As part of its engagement
in the year ended December 31, 2023 described above, Aon also provided consulting services in connection with grants of equity awards
to our executive officers. Aon reviewed annual long-term incentive grants at peer companies, as well as such grants made by companies
in the broader market, based on a blend of Black-Scholes valuations and grants as a percentage of the applicable company's capitalization.
Following such consultation, the Compensation Committee is considering alternative models and equity vehicles for future equity-based
grants.

 Benefits and Perquisites

 Generally, benefits available
to NEOs are available to all employees on similar terms and include welfare benefits, paid time-off, life and disability insurance and
other customary or mandatory social benefits in Israel. We provide some of our NEOs with a phone and a company car, which are customary
benefits in Israel to managers and officers.

 We do not believe that the
benefits and perquisites described above deviate materially from the customary practice for compensation of executive officers by other
companies similar in size and stage of development in Israel. These benefits represent a relatively small portion of the executive officers'
total compensation.

 Say-on-Pay Vote

 Our stockholders approved,
on an advisory basis, our executive compensation program at our annual meeting of stockholders held on June 30, 2022. We did not seek
or receive any specific feedback from our stockholders concerning our executive compensation program during the past fiscal year. The
Compensation Committee did not specifically rely on the results of the prior vote in making any compensation-related decisions during
the fiscal year ended December 31, 2023.

 SUMMARY COMPENSATION TABLE

 The following table sets forth the compensation
earned by our NEOs for the fiscal years ended December 31, 2023 and 2022.

 Name and Principal Position

 Year

 Salary
 ($) (1)

 Bonus
 ($) (1)(2)

 RSUs
 ($) (3)

 ($) (4)

 All Other
 Compensation
 ($) (1)(5)

 Total
 ($)

 Nadav Kidron

 2023

 462,988

 242,576

 904,920

 -

 48,738

 1,659,222

 President, Chief Executive Officer and Chairman (6)

 2022

 491,131

 275,150

 4,847,380

 875,241

 344,718

 6,833,620

 Dr. Miriam Kidron

 2023

 347,405

 139,123

 605,480

 -

 17,423

 1,109,431

 Chief Scientific Officer and director (7)

 2022

 378,569

 140,231

 1,938,580

 588,947

 23,879

 3,070,206

 David Silberman

 2023

 156,070

 62,027

 277,180

 -

 41,434

 536,711

 Chief Financial Officer

 2022

 155,125

 49,732

 759,405

 261,754

 43,184

 1,269,200

 (1)
 Amounts paid for Salary, Bonus and All Other
 Compensation that were originally denominated in NIS were translated into U.S. Dollars at
 the then current exchange rate for each payment.

 (2)
 Bonuses were granted at the discretion of
 the Compensation Committee.

 (3)
 For RSU awards, the amounts reflect the grant
 date fair value, as calculated pursuant to ASC Topic 718 "Compensation–Stock
 Compensation." The assumptions used to determine the fair value of the RSU awards are
 set forth in note 10 to our audited consolidated financial statements. Our NEOs will not
 realize the value of these awards in cash unless and until the awards vest and the underlying
 shares are issued and subsequently sold.

 (4)
 The amounts reflect the grant date fair value,
 as calculated pursuant to ASC Topic 718, of these option awards. The assumptions used to
 determine the fair value of the option awards are set forth in note 10 to our audited consolidated
 financial statements. Our NEOs will not realize the value of these awards in cash unless
 and until these awards are exercised and the underlying shares subsequently sold.

 (5)
 See "All Other Compensation Table"
 below.

 (6)
 Until November 1, 2022, Mr. Kidron received
 certain compensation from Oramed Ltd. through KNRY, Ltd., an Israeli entity owned by Dr.
 Miriam Kidron, or KNRY. Beginning on November 1, 2022, Mr. Kidron receives certain compensation
 from the Company through Shnida Ltd., an Israeli entity owned by Mr. Kidron, and certain
 compensation from Oramed Ltd. For additional information see "—Employment and
 Consulting Agreements" below.

 (7)
 Dr. Kidron receives compensation from Oramed
 Ltd. through KNRY. See "—Employment and Consulting Agreements" below.

 All Other Compensation Table

 The "All Other Compensation"
amounts set forth in the Summary Compensation Table above consist of the following:

 Name

 Year

 Automobile-
 Related Expenses
 ($)

 Manager's
 Insurance
 (1)($)

 Education
 Fund
 ($)

 Relocation Expenses
 (2)($)

 Total
 ($)

 Nadav Kidron

 2023

 21,191

 21,711

 5,836

 -

 48,738

 2022

 9,774

 3,703

 330,559

 344,718

 Dr. Miriam Kidron

 2023

 17,423

 -

 -

 -

 17,423

 2022

 23,879

 -

 -

 -

 23,879

 David Silberman

 2023

 14,666

 21,888

 4,880

 -

 41,434

 2022

 16,095

 21,835

 5,254

 -

 43,184

 (1)
 Manager's insurance and education funds
 are customary benefits provided to employees based in Israel. Manager's insurance is
 a combination of severance savings (in accordance with Israeli law), defined contribution
 tax-qualified pension savings and disability insurance premiums. An education fund is a savings
 fund of pre-tax contributions to be used after a specified period of time for educational
 or other permitted purposes.

 (2)
 Relocation expenses represents additional
 compensation for the period during which Mr. Kidron was in the United States. These expenses
 mainly include relocation expenses, supplemental living expenses, accommodation allowances,
 education allowances, health insurance and related costs.

 Employment and Consulting Agreements

 On July 1, 2008, Oramed Ltd.
entered into a consulting agreement with KNRY, whereby Nadav Kidron, through KNRY, provided services as President and Chief Executive
Officer of both the Company and Oramed Ltd., or the Nadav Kidron Consulting Agreement. The Nadav Kidron Consulting Agreement was terminated,
effective November 1, 2022, and replaced with the agreements as further described below. Additionally, on July 1, 2008, Oramed Ltd. entered
into a consulting agreement with KNRY whereby Dr. Miriam Kidron, through KNRY, provides services as Chief Scientific Officer of both
the Company and Oramed Ltd., or the Miriam Kidron Consulting Agreement.

 The Miriam Kidron Consulting
Agreement is terminable by either party upon 140 days prior written notice. The agreement, as amended, provides that KNRY will be reimbursed
for reasonable expenses incurred in connection with performance of the agreement. Pursuant to the agreement, each of KNRY and Dr. Miriam
Kidron agreed that during the term of the agreement and for a 12-month period thereafter, none of them will compete with Oramed Ltd.
nor solicit employees of Oramed Ltd. Starting January 1, 2024, Dr. Miriam Kidron receives a monthly consulting fee of NIS 117,040.

 The Nadav Kidron Consulting
Agreement was terminable by either party upon 140 days prior written notice. The agreement, as amended, provided that KNRY will be reimbursed
for reasonable expenses incurred in connection with performance of the agreement. Pursuant to the agreement, KNRY and Nadav Kidron each
agreed that during the term of the agreement and for a 12-month period thereafter, none of them will compete with Oramed Ltd. nor solicit
employees of Oramed Ltd. From September 1, 2021 until termination, Nadav Kidron received a monthly consulting fee of NIS 146,705.

 Following the relocation
of Nadav Kidron to the State of Israel, the Company entered into two agreements with Mr. Kidron, replacing the Nadav Kidron Consulting
Agreement, substantially on the same terms, in order to allocate his time and services between the Company and Oramed Ltd.

 Effective November 1, 2022,
the Company entered into a consulting agreement with Shnida Ltd., whereby Nadav Kidron, through Shnida Ltd., provides services as President
and Chief Executive Officer of the Company. The agreement is terminable by either party upon 140 days prior written notice. The agreement
provides that Shnida Ltd. will be reimbursed for reasonable expenses incurred in connection with performance of the agreement. Effective
as of January 1, 2024, Nadav Kidron receives a monthly consulting fee of NIS 96,825. Pursuant to the agreement, Shnida Ltd. and Nadav
Kidron each agree that during the term of the agreement and for a 12-month period thereafter, none of them will compete with the Company
nor solicit employees of the Company.

 In addition, we, through
Oramed Ltd., have entered into an employment agreement with Nadav Kidron, effective as of November 1, 2022, pursuant to which, effective
as of January 1, 2024, Mr. Kidron receives gross monthly salary of NIS 51,591 in consideration for his services as President and Chief
Executive Officer of Oramed Ltd. In addition, Mr. Kidron is provided with a phone and a company car pursuant to the terms of his agreement.

 We, through Oramed Ltd., have
entered into an employment agreement with David Silberman as of May 23, 2021, pursuant to which Mr. Silberman was appointed as Chief Financial
Officer, Treasurer and Secretary of the Company and Oramed Ltd., effective July 5, 2021. In accordance with the employment agreement,
as amended, Mr. Silberman's current gross monthly salary is NIS 49,810, effective January 1, 2024 and will increase to NIS 52,300,
effective June 1, 2024. In addition, Mr. Silberman is provided with a phone and a company car allowance pursuant to the terms of his agreement.

 We have entered into indemnification
agreements with our directors and officers pursuant to which we agreed to indemnify each director and officer for any liability he or
she may incur by reason of the fact that he or she serves as our director or officer, to the maximum extent permitted by law.

 Potential Payments upon
Termination or Change-in-Control

 We have no plans or arrangements
in respect of remuneration received or that may be received by our NEOs to compensate such officers in the event of termination of employment
(as a result of resignation or retirement).

 According to our NEOs'
employment agreements, upon a termination in connection with a change-in-control that occurs during the period that is three months prior
and 12 months after the event, the following "double trigger" change-in-control provisions shall apply:

 The
 President and Chief Executive Officer will be entitled to receive 18 months severance.

 All
 other NEOS will be entitled to receive 12 months severance.

 Severance
 shall be defined as base salary plus bonuses over the severance period. For U.S.-based persons,
 COBRA payments equivalent to healthcare benefits values will be provided over the severance
 period.

 Full
 vesting acceleration of all outstanding unvested equity incentives.

 Pension, Retirement or Similar Benefit Plans

 We have no arrangements or
plans under which we provide pension, retirement or similar benefits for directors or executive officers. Our directors and executive
officers may receive stock options, RSUs or restricted shares at the discretion of our Compensation Committee in the future.

 Policy Relating to Recovery of Erroneously
Awarded Compensation

 Our Board has adopted an
executive compensation clawback policy, administered by our Compensation Committee, which provides for the recoupment (or clawback) from
current and former executive officers of certain compensation in the event of an accounting restatement resulting from material noncompliance
with financial reporting requirements under the federal securities laws of the United States. In the event the Company is required to
prepare an accounting restatement of its financial statements due to the Company's material non-compliance with any financial reporting
requirement under the securities laws, the Compensation Committee will require prompt reimbursement or forfeiture of any excess incentive
compensation (as defined in the clawback policy) received by any covered executive officer during the three completed fiscal years immediately
preceding the date on which the Company is required to prepare an accounting restatement.

 OUTSTANDING EQUITY AWARDS AT DECEMBER 31, 2023

 The following table sets
forth information concerning stock options and stock awards held by the NEOs as of December 31, 2023.

 Option Awards

 Stock Awards

 Name

Underlying

Unexercised

Options (#)

Exercisable

Underlying

Unexercised

Options (#)

Unexercisable

Price

($)

Expiration

Date

 Number of shares

that

have not

vested

(#)

 Market

value of

shares that

have not

vested

($)

 Nadav Kidron

 47,134

 (1)

 -

 12.45

 4/9/24

 49,000

 (2)

 -

 7.77

 6/30/27

 97,000

 (3)

 -

 8.14

 1/31/28

 196,500

 (4)(5)

 -

 3.16

 2/26/29

 190,000

 (6)

 -

 4.80

 1/8/30

 112,500

 (7)

 37,500

 (7)

 10.40

 2/3/31

 26,750

 (8)

 80,250

 (8)

 13.89

 1/3/32

 87,095

 (9)

 29,032

 (9)

 3.91

 9/17/32

 582,500

 (12)(13)(14)(15)

 1,345,575

 Dr. Miriam Kidron

 47,134

 (1)

 -

 12.45

 4/9/24

 69,999

 (16)

 -

 7.77

 6/30/27

 (17)

 -

 8.14

 1/31/28

 104,000

 (18)(5)

 -

 3.16

 2/26/29

 100,000

 (19)

 4.80

 1/8/30

 75,000

 (20)

 25,000

 (20)

 10.40

 2/3/31

 54,000

 (21)

 18,000

 (21)

 13.89

 1/3/32

 24,059

 (22)

 8,020

 (22)

 3.91

 9/17/32

 408,584

 (23)(24)(25)(26)

 943,829

 David Silberman

 25,000

 (28)

 25,000

 (28)

 20.19

 9/1/31

 8,000

 (29)

 24,000

 (29)

 13.89

 1/3/32

 7,121

 (30)

 2,374

 (30)

 3.91

 9/17/32

 176,375

 (31)(32)(33)(34)

 407,426

 (1)
 On April 9, 2014, 47,134 options were granted
 to each of Nadav Kidron and Dr. Miriam Kidron under the 2008 Plan at an exercise price of
 $12.45 per share; 15,710 of such options vested on April 30, 2014 and the remainder vested
 in eight equal monthly installments, commencing on May 31, 2014. The options have an expiration
 date of April 9, 2024.

 (2)
 On June 30, 2017, 147,000 options were granted
 to Nadav Kidron under the 2008 Plan at an exercise price of $7.77 per share; 49,000 of such
 options vested on December 31, 2017 and the remainder vested in two equal installments of
 49,000 on each of December 31, 2018 and December 31, 2019, subject to the Company share price
 reaching the target of $9.50 and $12.50 per share, respectively. The options expire on June
 30, 2027. As of December 31, 2021, 98,000 of these options were forfeited.

 (3)
 On January 31, 2018, 97,000 options were granted
 to Nadav Kidron under the 2008 Plan at an exercise price of $8.14 per share; 97,000 of such
 options vested in four equal installments of 24,250 on each of January 1, 2019, January 1,
 2020, January 1, 2021 and January 1, 2022. The options expire on January 31, 2028.

 (4)
 On February 26, 2019, 196,500 options were
 granted to Nadav Kidron under the 2008 Plan at an exercise price of $3.16 per share; 196,500
 of such options vested in four equal installments of 49,125 on each of December 31, 2019,
 December 31, 2020, December 31, 2021 and December 31, 2022. The options expire on February
 26, 2029. For additional information please see footnote 5 below.

 (5)
 On September 11, 2019, these options were
 canceled and re-granted under the 2019 Plan in the same amounts and under the same terms
 as the original grants.

 (6)
 On January 8, 2020, 190,000 options were granted
 to Nadav Kidron under the 2019 Plan at an exercise price of $4.80 per share. 190,000 of the
 options vested in four equal installments of 47,500 on each of December 31, 2020, December
 31, 2021, December 31, 2022 and December 31, 2023. The options expire on January 8, 2030.

 (7)
 On February 3, 2021, 150,000 options were
 granted to Nadav Kidron under the 2019 Plan at an exercise price of $10.40 per share. 112,500
 of the options vested in three equal installments of 37,500 on each of December 31, 2021,
 December 31, 2022 and December 31, 2023, and the remainder of 37,500 shall vest on December
 31, 2024. The options expire on February 3, 2031.

 (8)
 On January 3, 2022, 107,000 options were granted
 to Nadav Kidron under the 2019 Plan at an exercise price of $13.89 per share. 26,750 options
 vested on January 1, 2023, and the remainder shall vest in three equal installments of 26,750
 on each of January 1, 2024, January 1, 2025 and January 1, 2026. The options expire on January
 3, 2032.

 (9)
 On September 18, 2022, 116,127 options were
 granted to Nadav Kidron under the Oravax Medical Inc. 2021 Long-Term Incentive Plan at an
 exercise price of $3.91 per share. 87,095 of the options vested in three installments on
 each of September 18, 2022, December 31, 2022 and December 31, 2023 and the remaining 29,032
 options shall vest on December 31, 2024. The options expire on September 17, 2032.

 (10)
 On November 13, 2014, 9,788 RSUs, representing
 a right to receive shares of the Company's common stock, were granted to Nadav Kidron.
 The RSUs vested in two equal installments, each of 4,894 shares, on November 30 and December
 31, 2014. The shares of common stock underlying the RSUs will be issued upon request of the
 grantee.

 (11)
 On February 23, 2015, 79,848 RSUs, representing
 a right to receive shares of the Company's common stock, were granted to Nadav Kidron.
 The RSUs vested in 23 installments consisting of one installment of 6,654 shares on February
 28, 2015 and 22 equal monthly installments of 3,327 shares each, commencing March 31, 2015.
 The shares of common stock underlying the RSUs will be issued upon request of the grantee.

 (12)
 On February 3, 2021, 300,000 RSUs, representing
 a right to receive shares of the Company's common stock, were granted to Nadav Kidron.
 100,000 RSUs vested in one installment on August 31, 2021 and the remainder shall vest per
 the following: 100,000 shares shall vest upon our common stock achieving a specified price
 per share, and 100,000 shall vest upon our achievement of certain business objectives.

 (13)

 On January 3, 2022, 63,000 RSUs representing a right to receive shares
of the Company's common stock were granted to Nadav Kidron. 15,750 RSUs vested on January 1, 2023 and the shares of common stock
underlying the RSUs will be issued upon request of the grantee. 47,250 shall vest in three equal installments of 15,750 on each of January
1, 2024, January 1, 2025 and January 1, 2026.

 (14)
 On July 28, 2022, 126,000 RSUs representing
 a right to receive shares of the Company's common stock were granted to Nadav Kidron.
 126,000 RSUs shall vest in three equal installments of 42,000 on each of January 1, 2024,
 January 1, 2025 and January 1, 2026.

 (15)
 On April 17, 2023, 279,000 RSUs representing
 a right to receive shares of the Company's common stock were granted to Nadav Kidron.
 69,750 RSUs vested in three equal quarterly installments of 23,250 starting May 1, 2023 and
 the remainder of 209,250 shall vest in nine equal quarterly installments of 23,250 starting
 February 1, 2024.

 (16)
 On June 30, 2017, 69,999 options were granted
 to Dr. Miriam Kidron under the 2008 Plan at an exercise price of $7.77 per share; Such options
 vested in three equal installments of 23,333 on each of December 31, 2017, December 31, 2018
 and December 31, 2019. The options have an expiration date of June 30, 2027.

 (17)
 On January 31, 2018, 47,000 options were
 granted to Dr. Miriam Kidron under the 2008 Plan at an exercise price of $8.14 per share;
 47,000 of such options vested in four equal installments of 11,750 on each of January 1,
 2019, January 1, 2020, January 1, 2021 and January 1, 2022. The options expire on January
 31, 2028.

 (18)
 On February 26, 2019, 104,000 options were
 granted to Dr. Miriam Kidron under the 2008 Plan at an exercise price of $3.16 per share;
 104,000 of such options vested in four equal installments of 26,000 on each of December 31,
 2019, December 31, 2020, December 31, 2021 and December 31, 2022. The options expire on February
 26, 2029. For additional information please see footnote 5 above.

 (19)
 On January 8, 2020, 100,000 options were
 granted to Dr. Miriam Kidron under the 2019 Plan at an exercise price of $4.80 per share.
 100,000 of the options vested in four equal installments of 25,000 on each of December 31,
 2020, December 31, 2021, December 31, 2022 and December 31, 2023. The options expire on January
 8, 2030.

 (20)
 On February 3, 2021, 100,000 options were
 granted to Dr. Miriam Kidron under the 2019 Plan at an exercise price of $10.40 per share.
 75,000 of such options vested in three equal installments of 25,000 on each of on each of
 December 31, 2021, December 31, 2022 and December 31, 2023 and the remaining 25,000 options
 shall vest on December 31, 2024. The options expire on February 3, 2031.

 (21)
 On January 3, 2022, 72,000 options were granted
 to Dr. Miriam Kidron under the 2019 Plan at an exercise price of $13.89 per share. 18,000
 of such options vested on January 1, 2023 and the remaining 54,000 of the options shall vest
 in three equal installments of 18,000 on each of January 1, 2024, January 1, 2025 and January
 1, 2026. The options expire on January 3, 2032.

 (22)
 On September 18, 2022, 32,079 options were
 granted to Dr. Miriam Kidron under the Oravax Medical Inc. 2021 Long-Term Incentive Plan
 at an exercise price of $3.91 per share. 24,059 of the options vested in three installments
 on each of September 18, 2022, December 31, 2022 and December 31, 2023 and the remaining
 8,020 options shall vest on December 31, 2024. The options expire on September 17, 2032.

 (23)
 On February 3, 2021, 200,000 RSUs, representing
 a right to receive shares of the Company's common stock, were granted to Dr. Miriam
 Kidron. 66,666 RSUs vested in one installment on August 31, 2021 and the remainder shall
 vest per the following: 66,667 shares shall vest upon our common stock achieving a specified
 price per share, and 66,667 shall vest upon our achievement of certain business objectives.

 (24)
 On January 3, 2022, 42,000 RSUs representing
 a right to receive shares of the Company's common stock were granted to Dr. Miriam
 Kidron. 10,500 vested on January 1, 2023 and 31,500 shall vest in three equal installments
 of 10,500 on each of January 1, 2024, January 1, 2025 and January 1, 2026.

 (25)
 On July 28, 2022, 84,000 RSUs representing
 a right to receive shares of the Company's common stock were granted to Dr. Miriam
 Kidron. 84,000 shall vest in three equal installments of 26,000 on each of January 1, 2024,
 January 1, 2025 and January 1, 2026.

 (26)
 On April 17, 2023, 213,000 RSUs representing
 a right to receive shares of the Company's common stock were granted to Dr. Miriam
 Kidron. 53,250 RSUs vested in three equal quarterly installments of 17,750 starting May 1,
 2023 and the remainder of 159,750 shall vest in nine equal quarterly installments of 17,750
 starting February 1, 2024. The shares of common stock underlying the RSUs will be issued
 upon request of the grantee.

 (27)
 On April 17, 2023, 53,500 performance-based RSUs representing a right
to receive shares of the Company's common stock were granted to Dr. Miriam Kidron. 120,000 RSUs vested in one installment on May
26, 2023, upon our common stock achieving a specified price per share. The shares of common stock underlying the RSUs will be issued upon
request of the grantee.

 (28)
 On September 1, 2021, 50,000 options were
 granted to David Silberman under the 2019 Plan at an exercise price of $20.19 per share.
 25,000 options vested on June 27, 2022 and June 27, 2023 and the remainder shall vest in
 two equal installments of 12,500 options on each of June 27, 2024 and June 27, 2025. The
 options expire on September 1, 2031.

 (29)
 On January 3, 2022, 32,000 options were granted
 to David Silberman under the 2019 Plan at an exercise price of $13.89 per share. 8,000 options
 vested on January 1, 2023 and the remainder shall vest in three equal installments of 8,000
 on each of January 1, 2024, January 1, 2025 and January 1, 2026. The options expire on January
 3, 2032.

 (30)
 On September 18, 2022, 9,495 options were
 granted to David Silberman under the Oravax Medical Inc. 2021 Long-Term Incentive Plan at
 an exercise price of $3.91 per share. 7,121 of the options vested in two installments on
 each of September 18, 2022 and December 31, 2022 and the remaining 2,374 options shall vest
 on December 31, 2024. The options expire on September 17, 2032.

 (31)
 On September 1, 2021, 50,000 RSUs, representing
 a right to receive shares of the Company's common stock, were granted to David Silberman.
 These RSUs vest as follows: (i) 33,333 shall vest upon our common stock achieving a price
 per share of $25 for at least 20 days out of any 30-day trading period and (a) if the first
 condition was met any time before June 27, 2022, then the RSUs would have vested in three
 equal installments (on June 27, 2022, June 27, 2023 and June 27, 2024), (b) if the first
 condition is met any time between June 27, 2022 and June 27, 2023, then 1/3 of the RSUs will
 vest immediately, and the remainder will vest in two equal installments (on June 27, 2023
 and June 27, 2024), (c) if the first condition is met any time between June 27, 2023 and
 June 27, 2024, then 2/3 of the RSUs will vest immediately, and the remaining 1/3 will vest
 on June 27, 2024) and (d) if the first condition is met any time after June 27, 2024, then
 the RSUs will vest immediately; and (ii) 16,667 upon achievement of a certain licensing agreement
 as specified by the Board and (a) if the first condition was met any time before June 27,
 2022, then the RSUs would have vested in three equal installments (on June 27, 2022, June
 27, 2023 and June 27, 2024), (b) if the first condition is met any time between June 27,
 2022 and June 27, 2023, then 1/3 of the RSUs will vest immediately, and the remainder will
 vest in two equal installments (on June 27, 2023 and June 27, 2024), (c) if the first condition
 is met any time between June 27, 2023 and June 27, 2024, then 2/3 of the RSUs will vest immediately,
 and the remaining 1/3 will vest on June 27, 2024) and (d) if the first condition is met any
 time after June 27, 2024, then the RSUs will vest immediately.

 (32)
 On January 3, 2022, 19,000 RSUs representing
 a right to receive shares of the Company's common stock were granted to David Silberman.
 4,750 RSUs vested on January 1, 2023 and 14,250 shall vest in three equal installments of
 4,750 on each January 1, 2024, January 1, 2025 and January 1, 2026.

 (33)
 On July 28, 2022, 39,000 RSUs representing
 a right to receive shares of the Company's common stock were granted to David Silberman.
 39,000 shall vest in three equal installments of 13,000 on each of January 1, 2024, January
 1, 2025 and January 1, 2026.

 (34)
 On April 17, 2023, 97,500 RSUs representing
 a right to receive shares of the Company's common stock were granted to David Silberman.
 24,375 RSUs vested in three equal quarterly installments of 8,125 starting May 1, 2023 and
 the 73,125 shall vest in nine equal quarterly installments of 8,125 starting February 1,
 2024.

 DIRECTOR COMPENSATION

 The following table provides
information regarding compensation earned by, awarded or paid to each person for serving as a director who is not an executive officer
during the fiscal year ended December 31, 2023:

 Name of Director

 Fees
 Earned or
 Paid in
 Cash
 ($)

 Stock
 (1)(2)($)

 (1)(2)($)

 All Other
 Compensation
 ($)

 Total
 ($)

 Dr. Arie Mayer (3)

 58,875

 68,400

 -

 -

 127,275

 Yadin Rozov (5)

 40,125

 68,400

 -

 -

 108,525

 Leonard Sank

 43,875

 68,400

 -

 -

 112,275

 Benjamin Shapiro (6)

 20,000

 49,000

 -

 -

 69,000

 (1)
 As of December 31, 2023, our non-employee
 directors then in office held options to purchase shares of our common stock and RSUs as
 follows:

 Name of Director

 Aggregate
 of Shares
 Underlying
 Stock

 Aggregate
 of Shares
 Underlying

 Dr. Arie Mayer (4)

 39,000

 45,398

 Yadin Rozov (5)

 37,875

 7,500

 Leonard Sank

 39,000

 59,867

 Benjamin Shapiro (6)

 15,000

 -

 (2)
 The amounts reflect the grant date fair value,
 as calculated pursuant to ASC 718, of these option awards. The assumptions used to determine
 the fair value of the option awards are set forth in note 10 to our audited consolidated
 financial statements included in the Annual Report. Our directors will not realize the value
 of these awards in cash unless and until these awards are exercised and the underlying shares
 subsequently sold.

 (3)
 Includes $15,000 in additional director fees
 paid to Dr. Mayer in his capacity as a director during the fiscal year ended December 31,
 2023.

 (4)
 Includes 15,398 option awards granted by Oravax
 for Dr. Mayer's service as a member of the Board of Directors of Oravax.

 (5)
 Mr. Rozov resigned from the Board on January
 17, 2024.

 (6)
 Mr. Shapiro joined the Board on May 1, 2023.

 Our directors are entitled
to reimbursement for reasonable travel and other out-of-pocket expenses incurred in connection with attendance at meetings of our Board.
Based on a report provided to the Compensation Committee by Aon in 2023, effective as of January 1, 2024, each independent director is
entitled to receive as remuneration for his or her service as a member of the Board a sum equal to $30,000 and a grant of 5,070 RSUs
per annum. The Chairman of our Board is entitled to receive an additional sum equal to $25,500. The members of our Audit Committee are
each entitled to receive an additional sum equal to $6,000 and a grant of 2,230 RSUs. The members of our Compensation Committee are each
entitled to receive an additional sum equal to $4,500 and a grant of 1,520 RSUs. The members of our Nominating Committee are each entitled
to receive an additional sum equal to $4,000 and a grant of 505 RSUs. All cash remuneration is to be paid quarterly after the close of
each quarter. The RSUs vest on April 1, July 1, October 1 and January 1 of each year, subject to Compensation Committee approval each
year. Our executive officers did not receive additional compensation for service as directors. The Board may award special remuneration
to any director undertaking any special services on behalf of us other than services ordinarily required of a director.

 Other than as described above,
we have no present formal plan for compensating our directors for their service in their capacity as directors. Other than indicated
above, no director received and/or accrued any compensation for his services as a director, including committee participation and/or
special assignments during the year ended December 31, 2023.

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

 Stock Option Plans

 Our Board adopted the 2008
Plan and the 2019 Plan in order to attract and retain quality personnel.

 The 2008 Plan, which is no
longer utilized for new grants, provided for the grant of stock options, restricted stock, RSUs, and stock appreciation rights, collectively
referred to as "awards." Under the 2008 Plan, as amended, 2,400,000 shares were reserved for the grant of awards. As of December
31, 2023, options with respect to 2,287,989 shares had been granted, of which 275,673 had been forfeited, 308,804 had been exercised
and 1,310,586 have expired. As of December 31, 2023, 525,824 RSUs had been granted, of which 89,636 have vested and the shares of common
stock underlying those RSUs have not been issued and 34,118 have been forfeited.

 The 2019 Plan provides for
the grant of stock options, restricted stock, RSUs, and stock appreciation rights, collectively referred to as "awards." Under
the 2019 Plan, 1,000,000 shares were initially reserved for the grant of awards. On June 29, 2020, and August 3, 2020, respectively, our
Board and stockholders approved to amend and restate the 2019 Plan, the principal change being an increase in the number of shares of
common stock available under the 2019 Plan from 1,000,000 shares to 3,000,000 shares. On June 30, 2022, our Board and stockholders approved
to amend and restate the 2019 Plan, the principal change being an increase in the number of shares of common stock available under the
2019 Plan from 3,000,000 shares to 7,500,000 shares. Stock options granted under the 2019 Plan may be either incentive stock options under
the provisions of Section 422 of the Code, or non-qualified stock options. Under the amended 2019 Plan, 7,500,000 shares are reserved
for the grant of awards, which may be issued at the discretion of our Board from time to time. As of December 31, 2023, options with respect
to 1,863,646 shares have been granted, of which 232,918 had been forfeited, 66,978 had been exercised and none of them were expired. As
of December 31, 2023, 3,015,600 RSUs had been granted, of which 122,500 have vested and the shares of common stock underlying those RSUs
have not been issued and 371,751 have been forfeited. Since the Company had granted options during the time after the 2008 Plan allegedly
terminated, and out of an abundance of caution, the Company canceled these grants and re-granted certain of the options under 2019 Plan
in the same amounts and under the same terms as the original grants.

 The following table sets
forth additional information with respect to our equity compensation plans as of December 31, 2023:

 Plan category

 securities to
 be issued
 upon
 exercise of
 outstanding
 options,
 RSUs and
 rights (a)

 Weight-
 price of
 outstanding
 options,
 RSUs and
 rights (b)

 securities
 remaining
 available for
 future
 issuance
 under equity
 compensation
 plans
 (excluding
 securities
 reflected in
 column (a))
 (c)

 Equity compensation plans approved by security holders

 3,791,038

 $

 4.10

 3,365,488

 Equity compensation plans not approved by security holders

 -

 -

 -

 Total

 3,791,038

 $

 4.10

 3,365,488

 Security Ownership of Certain Beneficial Owners and Management

 The following table sets forth
certain information regarding the beneficial ownership of our common stock as of March 6, 2024 by: (1) each person who is known by us
to own beneficially more than 5% of our common stock; (2) each of our current directors; (3) each of our NEOs; and (4) all of our directors
and executive officers as a group. On such date, we had 40,519,160 shares of common stock outstanding.

 As used in the table below
and elsewhere in this form, the term "beneficial ownership" with respect to a security consists of sole or shared voting
power, including the power to vote or direct the vote, and/or sole or shared investment power, including the power to dispose or direct
the disposition, with respect to the security through any contract, arrangement, understanding, relationship or otherwise, including
a right to acquire such power(s) during the 60 days following March 6, 2024. Inclusion of shares in the table does not, however, constitute
an admission that the named stockholder is a direct or indirect beneficial owner of those shares. Unless otherwise indicated, (1) each
person or entity named in the table has sole voting power and investment power (or shares that power with that person's spouse)
with respect to all shares of common stock listed as owned by that person or entity and (2) the address of each of the individuals named
below is: c/o Oramed Pharmaceuticals Inc., 1185 Avenue of the Americas, Third Floor, New York, New York 10036.

 Name and Address of Beneficial Owner

 Shares

 Percentage
 of Shares
 Beneficially
 Owned

 Nadav Kidron #+

 2,103,947
 (1)

 5.6
 %

 Dr. Miriam Kidron #+

 795,299
 (2)

 1.9
 %

 David Silberman+

 151,375
 (3)

 *

 Dr. Daniel Aghion #

 2,206
 (4)

 *

 Dr. Arie Mayer #

 55,641
 (5)

 *

 Leonard Sank #

 87,395
 (6)

 *

 Benjamin Shapiro #

 1,909,602
 (7)

 4.7
 %

 All current executive officers and directors, as a group (eight persons)

 5,685,443
 (8)

 13.9
 %

 *
 Less than 1%

 #

 +
 NEO

 (1)
 Includes 745,634 shares of common stock issuable
 upon the exercise of outstanding stock options, 50,667 shares of common stock issuable upon
 the vesting of RSUs, and 163,136 shares of common stock underlying vested RSUs that are issuable
 upon request. Mr. Nadav's beneficial ownership includes the 218,603 shares of common
 stock held by Xiaopeng Li, a former director of the Company, over which he holds a proxy.

 (2)
 Includes 479,133 shares of common stock issuable
 upon the exercise of outstanding stock options, 42,375 shares of common stock issuable upon
 the vesting of RSUs, and 187,625 shares of common stock underlying vested RSUs that are issuable
 upon request.

 (3)
 Includes 41,000 shares of common stock issuable
 upon the exercise of outstanding stock options and 19,500 shares of common stock issuable

 (4)
 Includes 2,206 shares of common stock issuable

 (5)
 Includes 25,000 shares of common stock issuable
 upon the exercise of outstanding stock options and 4,832 shares of common stock issuable

 (6)
 Includes 54,867 shares of common stock issuable
 upon the exercise of outstanding stock options and 4,832 shares of common stock issuable

 (7)
 Includes 2,935 shares of common stock issuable

 (8)

 Includes 1,501,134 shares of common stock issuable upon the exercise of options beneficially owned by the referenced persons, 127,347 shares of common stock issuable upon the vesting of RSUs and 350,761 shares of common stock underlying vested RSUs that are issuable upon request.

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

 During the years ended December
31, 2023 and 2022, except for compensation arrangements described elsewhere herein, we did not participate in any transaction, and we
are not currently participating in any proposed transaction, or series of transactions, in which the amount involved exceeded the lesser
of $120,000 or one percent of the average of our total assets at year end for the last two completed fiscal years, and in which, to our
knowledge, any of our directors, officers, five percent beneficial security holders, or any member of the immediate family of the foregoing
persons had, or will have, a direct or indirect material interest.

 Our policy is to enter into
transactions with related persons on terms that, on the whole, are no less favorable than those available from unaffiliated third parties.
Based on our experience in the business sectors in which we operate and the terms of our transactions with unaffiliated third parties,
we believe that all of the transactions described below met this policy standard at the time they occurred. All related person transactions
are approved by our Board.

 The Board has determined
that Dr. Daniel Aghion, Dr. Arie Mayer, Leonard Sank and Benjamin Shapiro are independent as defined under the rules promulgated by Nasdaq.

 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 The aggregate fees billed
by Kesselman & Kesselman, independent registered public accounting firm, and member firm of PricewaterhouseCoopers International
Limited, for services rendered to us during the fiscal years ended December 31, 2023 and 2022:

 2023

 2022

 Audit Fees (1)

 $

 132,501

 $

 130,000

 Audit-Related Fees (2)

 1,500

 45,000

 Tax Fees (3)

 31,363

 20,000

 All Other Fees

 -

 -

 Total Fees

 $

 165,364

 $

 195,000

 (1)
 Amount represents fees paid for professional
 services for the audit of our consolidated financial statements, review of our interim condensed
 consolidated financial statements included in quarterly reports and services that are normally
 provided by our independent registered public accounting firm in connection with statutory
 and regulatory filings or engagements.

 (2)
 Represents fees paid for services rendered in connection with
at-the-market offering related fees for fiscal year 2022, and fees rendered in connection with the Israeli Innovation Authority requirements.
Represents fees paid for services rendered with the Israeli Innovation Authority requirements.

 (3)
 Represents fees paid for tax consulting
 services.

 SEC rules require that before
the independent registered public accounting firm are engaged by us to render any auditing or permitted non-audit related service, the
engagement be: (1) pre-approved by our Audit Committee; or (2) entered into pursuant to pre-approval policies and procedures established
by the Audit Committee, provided the policies and procedures are detailed as to the particular service, the Audit Committee is informed
of each service, and such policies and procedures do not include delegation of the Audit Committee's responsibilities to management.

 The Audit Committee pre-approves
all services provided by our independent registered public accounting firm. All of the above services and fees were reviewed and approved
by the Audit Committee before the services were rendered.

 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

 (a)
 Index to Financial Statements

 The following consolidated financial
statements are filed as part of this Annual Report on Form 10-K:

 Page

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB name: Kesselman & Kesselman C.P.A.s, PCAOB ID: 1309 and Auditor Location: Tel Aviv, Israel)

 CONSOLIDATED FINANCIAL STATEMENTS:

 Balance sheets

 Statements of income (loss)

 Statements of changes in equity

 Statements of cash flows

 Notes to financial statements

 F-6 - F-34

 Report of Independent Registered Public Accounting
Firm

 To the Board of Directors and Stockholders of Oramed Pharmaceuticals
Inc.

 Opinion on the Financial Statements

 We have audited the accompanying consolidated
balance sheets of Oramed Pharmaceuticals Inc. and its subsidiaries (the "Company") as of December 31, 2023 and 2022, and the
related consolidated statements of income (loss), changes in equity and cash flows for the years then ended, including the related notes
(collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its
operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States
of America.

 Basis for Opinion

 These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial
statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United
States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and
the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits of these consolidated
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part
of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing
an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide
a reasonable basis for our opinion.

 Critical Audit Matters

 The critical
audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated
or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated
financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit
matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating
the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which
it relates.

 Investments
at fair value

 As described
in Note 4 to the consolidated financial statements, the Company has $110,188 thousand investments at fair value recorded as of December
31, 2023 relating to the note and warrants issued to the Company by Scilex Holding Company. Management applied significant judgment in
estimating the fair value of the investments recorded, which also impacted the results of operations of the Company by approximately $15,638
thousand for the change in fair value of such investments in the year ended December 31, 2023. The fair value estimation involved the
use of significant estimates and assumptions with respect to the repayment date of the note and the related amounts of the note and warrants.

 The principal
considerations for our determination that performing procedures relating to investments at fair value is a critical audit matter are (i)
the high degree of auditor judgment and subjectivity in performing procedures relating to the fair value measurement of the investments
recorded, due to significant judgment by management when developing the estimate; (ii) significant audit effort in evaluating the significant
assumptions relating to the repayment date of the note and the related amounts of the note and warrants; and (iii) the audit effort involved
the use of professionals with specialized skill and knowledge.

 Addressing
the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated
financial statements. These procedures included, among others (i) reading the related agreements and (ii) testing management's process
for estimating the fair value of the investments. Testing management's process included evaluating the appropriateness of the valuation
methods, testing the completeness and accuracy of the data provided by management, and evaluating the reasonableness of significant assumptions
related to the repayment date. Professionals with specialized skill and knowledge were used to assist in the evaluation of the Company's
models.

 /s/ Kesselman & Kesselman

 Certified Public Accountants (Isr.)

 A member firm of PricewaterhouseCoopers International
Limited

 Tel Aviv, Israel

 We have served as the Company's auditor
since 2008.

 Kesselman & Kesselman, Trade Tower, 25 Hamered Street, Tel-Aviv
6812508, Israel,

P.O Box 50005 Tel-Aviv 6150001 Telephone: +972 -3- 7954555, Fax:+972 -3- 7954556, www.pwc.com/il

 F- 1

 CONSOLIDATED BALANCE SHEETS

 2023

 2022

 ASSETS

 CURRENT ASSETS:

 Cash and cash equivalents

 $
 9,055

 $
 40,464

 Short-term deposits (note 2)

 95,279

 111,513

 Marketable securities (note 3)

 -

 3,743

 Investments at fair value (note 4)

 57,713

 -

 Prepaid expenses and other current assets

 1,389

 Total current assets

 162,584

 157,109

 LONG-TERM ASSETS:

 Long-term deposits

 Investments at fair value (note 4)

 51,035

 -

 Marketable securities (note 3)

 1,807

 -

 Other non-marketable equity securities (note 5)

 3,524

 2,700

 Amounts funded in respect of employee rights upon retirement

 Property and equipment, net

 Operating lease right of use assets

 Total long-term assets

 57,967

 4,533

 Total assets

 $
 220,551

 $
 161,642

 LIABILITIES AND STOCKHOLDERS' EQUITY

 CURRENT LIABILITIES:

 Accounts payable and accrued expenses (note 6)

 $
 1,609

 $
 4,158

 Short-term borrowings (note 7)

 51,013

 -

 Deferred revenues

 -

 1,340

 Payable to related parties (note 13b)

 Operating lease liabilities

 Total current liabilities

 53,214

 5,746

 LONG-TERM LIABILITIES:

 Long-term deferred revenues

 4,000

 4,000

 Employee rights upon retirement

 Provision for uncertain tax position (note 12f)

 Operating lease liabilities

 Other liabilities

 Total long-term liabilities

 4,444

 4,740

 COMMITMENTS (note 8)

 EQUITY

 EQUITY ATTRIBUTABLE TO COMPANY'S STOCKHOLDERS':

 Common stock, $ 0.012 par value ( 60,000,000 authorized shares as of December 31, 2023 and December 31, 2022; 40,338,979 and 39,563,888 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively)

 Additional paid-in capital

 320,892

 314,417

 Accumulated deficit

 ( 157,556
)

 ( 163,081
)

 Total stockholders' equity

 163,821

 151,812

 Non-controlling interests

 ( 928
)

 ( 656
)

 Total equity

 162,893

 151,156

 Total liabilities and equity

 $
 220,551

 $
 161,642

 The accompanying notes are an integral part
of the consolidated financial statements.

 F- 2

 CONSOLIDATED STATEMENTS OF INCOME (LOSS)

 2023

 2022

 REVENUES

 $
 1,340

 $
 2,703

 RESEARCH AND DEVELOPMENT EXPENSES

 ( 8,971
)

 ( 27,639
)

 SALES AND MARKETING

 ( 1,851
)

 GENERAL AND ADMINISTRATIVE EXPENSES

 ( 8,425
)

 ( 13,811
)

 OPERATING LOSS

 ( 15,769
)

 ( 40,598
)

 INTEREST EXPENSES
 (note 11b)

 ( 2,037
)

 -

 FINANCIAL
 INCOME (EXPENSES), NET (note 11a)

 22,894

 2,934

 INCOME (LOSS) BEFORE TAX EXPENSES

 5,088

 ( 37,664
)

 TAX EXPENSES

 -

 ( 100
)

 NET LOSS (INCOME)

 $
 5,088

 $
 ( 37,764
)

 NET INCOME (LOSS) ATTRIBUTABLE TO:

 COMPANY'S STOCKHOLDERS

 5,525

 ( 36,561
)

 NON-CONTROLLING INTERESTS

 ( 437
)

 ( 1,203
)

 NET INCOME (LOSS)

 $
 5,088

 $
 ( 37,764
)

 BASIC INCOME (LOSS) PER SHARE OF COMMON STOCK

 $
 0.14

 $
 ( 0.94
)

 DILUTED INCOME (LOSS) PER SHARE OF COMMON STOCK

 $
 0.14

 $
 ( 0.94
)

 WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK USED IN COMPUTING BASIC INCOME (LOSS) PER SHARE OF COMMON STOCK

 40,315,068

 38,997,649

 WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK USED IN COMPUTING DILUTED INCOME (LOSS) PER SHARE OF COMMON STOCK

 40,566,901

 38,997,649

 The accompanying notes are an integral part
of the consolidated financial statements.

 F- 3

 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 in thousands

 Attributable
to Company's Stockholders

 Additional

 Total

 Non-

 Common Stock

 paid-in

 Accumulated

 stockholders'

 controlling

 Total

 Shares

 $

 capital

 deficit

 equity

 interests

 Equity

 In thousands

 BALANCE AS OF JANUARY 1, 2023

 39,564

 314,417

 ( 163,081
)

 151,812

 ( 656
)

 151,156

 SHARES ISSUED FOR SERVICES

 *

 -

 -

 ISSUANCE OF COMMON STOCK, NET

 2,426

 -

 2,428

 -

 2,428

 STOCK-BASED COMPENSATION

 4,040

 -

 4,047

 -

 4,047

 STOCK-BASED COMPENSATION OF SUBSIDIARY

 -

 -

 -

 -

 -

 NET INCOME (LOSS)

 -

 -

 -

 5,525

 5,525

 ( 437
)

 5,088

 BALANCE AS OF DECEMBER 31, 2023

 40,339

 320,892

 ( 157,556
)

 163,821

 ( 928
)

 162,893

 *
 Represents an amount of less than $1.

 Attributable
to Company's Stockholders

 Additional

 Total

 Non-

 Common Stock

 paid-in

 Accumulated

 stockholders'

 controlling

 Total

 Shares

 $

 capital

 deficit

 equity

 interests

 Equity

 In thousands

 BALANCE AS OF JANUARY 1, 2022

 38,158

 292,514

 ( 126,520
)

 166,453

 166,610

 SHARES ISSUED FOR SERVICES

 *

 -

 -

 ISSUANCE OF COMMON STOCK, NET

 1,213

 11,485

 -

 11,500

 -

 11,500

 EXERCISE OF WARRANTS AND OPTIONS

 *

 -

 -

 STOCK-BASED COMPENSATION

 11,117

 -

 11,119

 -

 11,119

 STOCK-BASED COMPENSATION OF SUBSIDIARY

 -

 -

 -

 -

 -

 TAX WITHHOLDINGS RELATED TO STOCK-BASED COMPENSATION SETTLEMENTS

 -

 -

 ( 783
)

 -

 ( 783
)

 -

 ( 783
)

 NET LOSS

 -

 -

 -

 ( 36,561
)

 ( 36,561
)

 ( 1,203
)

 ( 37,764
)

 BALANCE AS OF DECEMBER 31, 2022

 39,564

 314,417

 ( 163,081
)

 151,812

 ( 656
)

 151,156

 The accompanying notes are an integral part
of the consolidated financial statements.

 F- 4

 CONSOLIDATED STATEMENTS OF CASH FLOWS

 In thousands

 2023

 2022

 CASH FLOWS FROM OPERATING ACTIVITIES:

 Net income (loss)

 $
 5,088

 $
 ( 37,764
)

 Adjustments required to reconcile net income (loss) to net cash used in operating activities:

 Depreciation

 Gain from selling fixed assets

 -

 ( 13
)

 Exchange differences and interest on deposits and held to maturity bonds

 ( 2,172
)

 ( 1,550
)

 Changes in fair value of investments

 ( 16,392
)

 Stock-based compensation

 4,212

 11,509

 Shares issued for services

 Funds in respect of employee rights upon retirement

 ( 3
)

 -

 Accrued interest on short-term borrowings to maturity

 1,463

 -

 Changes in operating assets and liabilities:

 Prepaid expenses and other current assets

 Accounts payable, accrued expenses and related parties

 ( 2,225
)

 ( 376
)

 Net changes in operating lease

 ( 93
)

 Deferred revenues

 ( 1,340
)

 ( 703
)

 Liability for employee rights upon retirement

 ( 1
)

 Other liabilities

 ( 38
)

 Total net cash used in operating activities

 ( 10,295
)

 ( 27,918
)

 CASH FLOWS FROM INVESTING ACTIVITIES:

 Purchase of property and equipment

 ( 254
)

 ( 496
)

 Proceeds from selling fixed assets

 -

 Purchase of short-term deposits

 ( 91,369
)

 ( 151,700
)

 Purchase of long-term deposits

 -

 ( 5
)

 Long-term investments

 ( 99,550
)

 ( 2,700
)

 Proceeds from long-term investments

 5,000

 -

 Proceeds from redemption of short-term deposits

 109,760

 178,200

 Proceeds from maturity of held to maturity securities

 3,375

 6,886

 Funds in respect of employee rights upon retirement

 -

 Total net cash provided by (used in) investing activities

 ( 73,038
)

 30,211

 CASH FLOWS FROM FINANCING ACTIVITIES:

 Proceeds from issuance of common stock, net of issuance costs

 2,428

 11,500

 Proceeds from exercise of warrants and options

 -

 Loans received

 99,550

 -

 Loans repaid

 ( 50,000
)

 -

 Tax withholdings related to stock-based compensation settlements

 -

 ( 783
)

 Total net cash provided by financing activities

 51,978

 10,779

 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 ( 54
)

 ( 64
)

 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 ( 31,409
)

 13,008

 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 40,464

 27,456

 CASH AND CASH EQUIVALENTS AT END OF YEAR

 $
 9,055

 $
 40,464

 (A) SUPPLEMENTARY DISCLOSURE ON CASH FLOWS:

 Taxes paid

 $
 -

 $

 Interest paid

 $

 $
 -

 Interest received

 $
 5,156

 $
 1,844

 (B) SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:

 Recognition of operating lease right of use assets and liabilities

 -

 The accompanying notes are an integral part
of the consolidated financial statements

 F- 5

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES:

 a.
 General

 1)

 Incorporation and operations

 Oramed Pharmaceuticals Inc. (collectively
with its subsidiaries, the "Company," unless the context indicates otherwise), a Delaware corporation, was incorporated on
April 12, 2002.

 On February 17, 2006, the Company entered
into an agreement with Hadasit Medical Services and Development Ltd. to acquire the provisional patent related to an orally ingestible
insulin capsule to be used for the treatment of individuals with diabetes.

 On May 14, 2007, the Company incorporated
a wholly-owned subsidiary in Israel, Oramed Ltd. (the "Subsidiary"), which is engaged in research and development.

 On July 30, 2019, the Subsidiary incorporated
a wholly-owned subsidiary in Hong Kong, Oramed HK Limited (the "Hong Kong Subsidiary"). As of December 31, 2023, the Hong
Kong Subsidiary has no operations.

 On March 18, 2021, the Company entered
into a license agreement (the "Oravax License Agreement") with Oravax Medical Inc. ("Oravax") and into a stockholders
agreement (the "Stockholders Agreement") with Akers Biosciences Inc., Premas Biotech Pvt. Ltd., Cutter Mill Capital LLC ("Cutter
Mill") and Run Ridge LLC ("Run Ridge"). According to the Stockholders Agreement, Oravax issued 1,890,000 shares of its
capital stock to the Company, representing 63 % of the issued and outstanding share capital of Oravax, on a fully diluted basis, as of
the date of issuance. Consequently, Oramed consolidates Oravax in its consolidated financial statements since that time.

 On November 23, 2021, Oravax incorporated
a wholly-owned subsidiary in Israel, Oravax Medical Ltd., which is engaged in research and development. Effective January 1, 2022, Oravax
transferred its rights and obligations under the Oravax License Agreement to Oravax Medical Ltd.

 On January 11, 2023, the Company announced
that the ORA-D-013-1 Phase 3 trial did not meet its primary or secondary endpoints. As a result, the Company terminated this trial and
a parallel Phase 3, ORA-D-013-2 clinical trial. As these results are considered a triggering event, the Company evaluated all of its long
lived assets which include fixed assets and operating lease right-of-use assets in the first quarter of 2023 and concluded that no impairment
was required. In 2023, the Company completed an analysis of the data from the ORA-D-013-1 Phase 3 trial and found that subpopulations
of patients with pooled specific parameters, such as body mass index (BMI), baseline HbA1c and age, responded well to oral insulin. These
subsets exhibited an over 1 % placebo adjusted, statistically significant, reduction in HbA1c. Based on this analysis, the Company is working
on a protocol for a new Phase 3 clinical trial to be submitted to the U.S. Food and Drug Administration (the "FDA"). Concurrently,
the Company is examining its existing pipeline and has commenced an evaluation process of potential strategic opportunities, with the
goal of enhancing value for the Company's stockholders.

 F- 6

 2)

 Development and liquidity risks

 The Company is engaged in research
and development in the biotechnology field for innovative pharmaceutical solutions, including an orally ingestible insulin capsule to
be used for the treatment of individuals with diabetes, and the use of orally ingestible capsules for delivery of other polypeptides,
and has not generated significant revenues from its operations. Following the termination of the ORA-D-013-1 and ORA-D-013-2 Phase 3 trials,
the Company's research and development activities have been significantly reduced while it conducted a strategic review process.
As a result, the Company is currently incurring lower research and development and sales and marketing expenses. The Company is working
on a protocol for a new Phase 3 clinical trial to be submitted to the FDA. Concurrently, the Company is examining its existing pipeline
and has commenced an evaluation process of potential strategic opportunities.

 Based on the Company's current
cash resources and commitments, the Company believes it will be able to maintain its current planned development activities and the corresponding
level of expenditures for at least the next 12 months, although no assurance can be given that the Company will not need additional funds
prior to such time. If there are unexpected increases in its operating expenses, the Company may need to seek additional financing during
the next 12 months. The Company may also need additional funds to realize the decisions made as part of its strategic review process.
The Company cannot predict the outcome of these activities.

 On August 7, 2023, the Company entered
into a Stock Purchase Agreement, as subsequently amended on August 9, 2023 and August 21, 2023, (the "Sorrento SPA"), with
Sorrento Therapeutics, Inc. ("Sorrento"), to acquire certain equity securities of Scilex Holding Company ("Scilex"),
owned by Sorrento (the "Purchased Securities"), for a purchase price of $ 105,000. Sorrento and its affiliated debtor, Scintilla
Pharmaceuticals, Inc. ("Scintilla" and together with Sorrento, the "Debtors") are in Chapter 11 bankruptcy proceedings.

 On August 9, 2023, the Company entered
into a Senior Secured, Super-Priority Debtor-in-Possession Loan and Security Agreement (the "Senior DIP Loan Agreement") with
the Debtors in the principal amount of $ 100,000, which included a non-refundable closing fee of $ 450 paid in full out of the proceeds.
This amount was subsequently drawn in full by the Debtors and was intended to be used by the Company as a credit for the consideration
for the Purchased Securities, with an additional $ 5,000 in cash to be paid by the Company at closing. Thereafter, the Company and Sorrento
continued discussions and negotiations relating to the sale contemplated under the Sorrento SPA.

 On September 21, 2023, the Company
entered into and consummated the transactions contemplated by a Securities Purchase Agreement (the "Scilex SPA") with Scilex
and Acquiom Agency Services LLC. Pursuant to the Scilex SPA, in exchange for Scilex assuming outstanding obligations of Sorrento under
the Senior DIP Loan Agreement (the "DIP Assumption") and for the ability to credit the amounts assumed under the DIP Assumption
in exchange for certain equity securities of Scilex owned by Sorrento, Scilex (i) issued to the Company (A) a Senior Secured Promissory
Note due 18 months from the date of issuance in the principal amount of $ 101,875 (the "Note"), which includes accrued and
unpaid interest of $ 875 under the Senior DIP Loan Agreement and $ 1,000 of fees added to the principal amount of the Note, (B) the Closing
Penny Warrant (as defined herein), and (C) the Subsequent Penny Warrants (as defined herein), and (ii) caused the Transferred Warrants
(as defined herein) to be transferred to the Company. For further details, see note 4.

 On August 8, 2023, the Company borrowed
an aggregate of $ 99,550 pursuant to loan agreements from Israel Discount Bank Ltd. For further details, see note 7.

 F- 7

 b.
 Basis of presentation

 The consolidated financial statements
included herein have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S.
GAAP").

 c.
 Use of estimates in the preparation of financial statements

 The preparation of the consolidated financial
statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the financial statements date and the reported revenues and expenses
during the reporting periods. Actual results could differ from those estimates.

 As applicable to these consolidated financial
statements, the most significant estimates and assumptions relate to stock-based compensation and to the investments at fair value (for
further details, see note 4).

 d.
 Functional currency

 The currency of the primary economic environment
in which the operations of the Company and its subsidiaries are conducted is the U.S. dollar ("$" or "dollar").
Therefore, the functional currency of the Company and its subsidiaries is the dollar.

 Transactions and balances originally denominated
in dollars are presented at their original amounts. Balances in foreign currencies are translated into dollars using historical and current
exchange rates for non-monetary and monetary balances, respectively. For foreign transactions and other items reflected in the statements
of operations, the following exchange rates are used: (1) for transactions – exchange rates at transaction dates or average rates
and (2) for other items (derived from non-monetary balance sheet items such as depreciation) – historical exchange rates. The resulting
transaction gains or losses are carried to financial income or expenses, as appropriate.

 e.
 Principles of consolidation

 The consolidated financial statements
include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.

 f.
 Cash equivalents

 The Company considers all short-term,
highly liquid investments, which include short-term deposits with original maturities of three months or less from the date of purchase
that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash, to be cash equivalents.

 g.
 Fair value measurement:

 The Company measures fair value and discloses
fair value measurements for financial assets. Fair value is based on the price that would be received to sell an asset in an orderly transaction
between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the
guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three
broad levels, which are described as follows:

 Level 1:

 Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

 Level 2:

 Observable prices that are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

 Level 3:

 Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

 F- 8

 The Company's financial assets subject
to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows:

 December 31, 2023

 Level 1

 Level 2

 Level 3

 Fair Value

 Assets:

 Marketable Securities

 DNA

 -

 -

 Entera

 -

 -

 Transferred Warrants (see note 4)

 1,440

 -

 -

 1,440

 Closing Penny Warrant (see note 4)

 -

 9,180

 -

 9,180

 Subsequent Penny Warrants (see note 4)

 -

 -

 6,502

 6,502

 The Note (see note 4)

 -

 -

 93,066

 93,066

 $
 1,807

 $
 9,180

 $
 99,568

 $
 110,555

 December 31, 2022

 Level 1

 Level 2

 Level 3

 Fair Value

 Assets:

 Marketable Securities

 DNA

 -

 -

 Entera

 -

 -

 $

 $
 -

 $
 -

 $

 The fair value of the investment in non-marketable
equity securities as presented in note 5 was based on a Level 3 measurement.

 As of December 31, 2023, the carrying
amounts of cash equivalents, short-term deposits, Short-Term Borrowings (as defined in note 7) and accounts payable approximate their
fair values due to the short-term maturities of these instruments.

 As of December 31, 2022, the carrying
amounts of cash equivalents, short-term deposits and accounts payable approximate their fair values due to the short-term maturities of
these instruments.

 The amounts funded in respect of employee
rights are stated at cash surrender value which approximates its fair value.

 h.
 Marketable securities

 1.

 Equity securities

 The Company measured the securities
(investments in equity securities of DNA GROUP (T.R.) Ltd. ("DNA"), Entera Bio Ltd. ("Entera") and the Transferred
Warrants) at fair value, with changes in fair value recognized in earnings.

 2.

 Held to maturity securities

 All debt securities are classified
as held-to-maturity because the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities
are stated at amortized cost, adjusted for amortization of premiums and accretion of discounts to maturity.

 F- 9

 i.
 Other non-marketable equity securities

 The Company also invested in non-marketable
equity securities, through an investment in a privately held company. This equity investment does not have a readily determinable fair
value. The investment is measured under the measurement alternative in Accounting Standards Codification ("ASC") 321 "Investments
– Equity Securities" to the extent such an investment is not subject to consolidation or the equity method. Under the measurement
alternative, this equity investment is carried at cost, less any impairment, adjusted for changes resulting from observable price changes
in transactions for an identical or similar investment of the same issuer. The investment would be impaired in accordance with the provisions
of ASC 820 "Fair Value Measurement" if, based on a qualitative assessment of impairment indicators, the fair value of the
investment is less than its carrying amount. If considered impaired, the difference between the carrying amount and fair value would be
recorded in the consolidated statement of operations. For further details, see note 5.

 j.
 Investments, at fair value

 The Company invested in the Note and received
Penny Warrants issued by Scilex (see note 4), for which it has elected the fair value option. Under the Fair Value Option Subsections
of ASC Subtopic 825-10, Financial Instruments – Overall, the Company has the irrevocable option to report financial assets at fair
value on an instrument-by-instrument basis. Changes in fair value are recorded under financial income, net and include interest income
on the Note.

 Alongside the Note and the Penny Warrants,
Scilex issued to the Company the Transferred Warrants. The Transferred Warrants meet the definition of a derivative under ASC 815 "Derivatives
and Hedging," and therefore will also be measured at fair value. Changes in the fair value of the Warrants are recorded under financial
income, net.

 k.
 Concentration of credit risks

 Financial instruments that subject the
Company to credit risk consist primarily of cash and cash equivalents, short and long-term deposits, which are deposited in major financial
institutions, marketable securities, and the Note (as defined herein). The Company is of the opinion that the credit risk in respect of
these balances is remote, except for the Note (as defined herein) for which the credit risk is reflected in its fair value measurement
(for further details, see note 4).

 l.
 Income taxes

 1.

 Deferred taxes

 Deferred taxes are determined utilizing
the asset and liability method based on the estimated future tax effects of differences between the financial accounting and tax bases
of assets and liabilities under the applicable tax laws. Deferred tax balances are computed using the tax rates expected to be in effect
when those differences reverse. A valuation allowance in respect of deferred tax assets is provided if, based upon the weight of available
evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has provided a full
valuation allowance with respect to its deferred tax assets. See note 12.

 Taxes that would apply in the event
of disposal of investments in the Israeli subsidiary have not been taken into account in computing deferred taxes, as it is the Company's
intention to hold this investment, not to realize it.

 2.

 Uncertainty in income tax

 The Company follows a two-step approach
to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if
the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step
is to measure the tax benefit as the largest amount that is more than 50 % likely of being realized upon ultimate settlement. Such liabilities
are classified as long-term, unless the liability is expected to be resolved within 12 months from the balance sheet date. The Company's
policy is to include interest and penalties related to unrecognized tax benefits within income tax expenses.

 F- 10

 m.
 Revenue recognition

 HTIT

 On November 30, 2015, the Company entered into a Technology
License Agreement, with Hefei Tianhui Incubator of Technologies Co. Ltd. ("HTIT") and on December 21, 2015, the parties entered
into an Amended and Restated Technology License Agreement that was further amended by the parties on June 3, 2016 and July 24, 2016 (the
"HTIT License Agreement").

 As of December 31, 2023, an aggregate amount of $ 22,382 was
allocated to the HTIT License Agreement, all of which were received through the balance sheet date. Through December 31, 2023, the Company
recognized revenue associated with this agreement in the aggregate amount of $ 20,382, of which $ 1,340 was recognized in the twelve month
period ended December 31, 2023, and deferred the remaining amount of $ 2,000, which is presented as long-term deferred revenues on the
consolidated balance sheet.

 Medicox

 On November 13, 2022, the Company entered
into a distribution license agreement ("Medicox License Agreement") with Medicox Co., Ltd. ("Medicox"). The Medicox
License Agreement grants Medicox an exclusive license to apply for regulatory approval and distribute ORMD-0801 in the Republic of Korea.
For further details, see note 8c.

 Under ASC 606 "Revenue from Contracts
with Customers," the Company identified Medicox as a customer and the Medicox License Agreement as a contract with a customer.

 The Company identified a performance obligation
in the Medicox License Agreement to stand-ready and provide Medicox with support in its commercialization efforts in the Republic of Korea.
This performance obligation includes a non-distinct distribution license for ORMD-0801, which the Company views a predominant item in
the combined performance obligation. The Company concluded that the license is not distinct, as no party other than the Company is capable
of providing related services to Medicox, and both the license and related services are necessary for the customer to obtain a regulatory
approval in the Republic of Korea. In addition, the agreement covers the terms of future manufacturing services, that are contingent on
the completion and success of the commercialization efforts.

 The Medicox License Agreement contains
a fixed consideration of $ 2,000, which was received by the Company during the year ended December 31, 2022 and is currently presented
under long-term deferred revenues. It also contains variable consideration of contractual milestone payments and sales-based royalties.

 The Company's obligation to stand-ready
and support Medicox will be recognized on a straight-line basis over the period the Company expects to provide support to Medicox. As
of December 31, 2023, this support has not commenced, and no revenue was recognized from the Medicox License Agreement.

 If Medicox proceeds with the regulatory
approval process in the Republic of Korea, the Company expects most of the revenue to be recognized at a later stage, going forward. The
Company notes that its Phase 3 trial did not meet its primary or secondary endpoints (see note 1a.1). If Medicox chooses to terminate
the agreement as a result of the outcome of the Phase 3 trials, the Company will accelerate revenue recognition and recognize it at such
time.

 F- 11

 n.
 Research and development

 Research and development expenses include
costs directly attributable to the conduct of research and development programs, including the cost of salaries, employee benefits, the
cost of supplies, the cost of services provided by outside contractors, including services related to the Company's clinical trials,
clinical trial expenses and the full cost of manufacturing drug for use in research and preclinical development. All costs associated
with research and development are expensed as incurred.

 Clinical trial costs are a significant
component of research and development expenses and include costs associated with third-party contractors. The Company outsources a substantial
portion of its clinical trial activities, utilizing external entities such as Clinical Research Organizations ("CROs"), independent
clinical investigators, and other third-party service providers to assist the Company with the execution of its clinical trials. For each
clinical trial that the Company conducts, clinical trial costs are expensed immediately.

 o.
 Stock-based compensation

 Equity awards granted to employees are
accounted for using the grant date fair value method. The grant date fair value is determined as follows: for stock options and restricted
stock units ("RSUs") with an exercise price using the Black Scholes pricing model, for stock options and RSUs with market
conditions using a Monte Carlo model and for RSUs with service conditions based on the grant date share price. The fair value of share
based payment awards is recognized as an expense over the requisite service period. The expected term is the length of time until the
expected dates of exercising the award and is estimated using the simplified method due to insufficient specific historical information
of employees' exercise behavior, unless the award includes a market condition, in which case the contractual term is used. The volatility
is based on a historical volatility, by statistical analysis of the weekly share price for past periods. The Company elected to recognize
compensation cost for awards granted to employees that have a graded vesting schedule using the accelerated method based on the multiple-option
award approach. For awards with only market conditions, compensation expense is not reversed if the market conditions are not satisfied.

 The Company elects to account for forfeitures
as they occur.

 p.
 Earnings (loss) per common share

 Basic net earnings (loss) per common share
are computed by dividing the net earnings (loss) attributable to stockholders for the period by the weighted average number of shares
of common stock outstanding for each period, including vested RSUs. Outstanding stock options, warrants and RSUs have been excluded from
the calculation of the diluted loss per share because all such securities are anti-dilutive for the year ended December 31, 2022.

 For the diluted earnings per share calculation
for the year ended December 31, 2023, the weighted average number of shares outstanding during the year is adjusted for the potential
dilution that could occur in connection with employee share-based payment, using the treasury stock method.

 The weighted average number of stock options,
warrants, and RSUs that has been excluded from the calculation of the diluted income per share as of December 31, 2023 was 1,227,506 shares.

 The weighted average number of stock options,
warrants and RSUs excluded from the calculation of diluted net loss was 3,356,203 for the year ended December 31, 2022.

 F- 12

 q.
 Leases

 The Company leases real estate and cars
for use in its operations, which are classified as operating leases. In addition to rent, the leases may require the Company to pay directly
for fees, insurance, maintenance and other operating expenses.

 The Company determines if an arrangement
is a lease at inception. Operating leases are included in operating lease right of use assets and operating lease liabilities in the consolidated
balance sheets. Right of use ("ROU") assets represent the Company's right to use an underlying asset for the lease term
and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets
and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company
uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the
lease payments. Lease expenses are recognized on a straight-line basis over the lease term.

 The Company elected the short-term lease
recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, the Company does not recognize
ROU assets or lease liabilities but recognizes lease expenses over the lease term on a straight line basis. The Company also elected the
practical expedient to not separate lease and non-lease components for all of its leases.

 Lease terms will include options to extend
or terminate the lease when it is reasonably certain that the Company will either exercise or not exercise the option to renew or terminate
the lease.

 The Company's lease agreements have
remaining lease terms ranging from 1 year to 4 years. Some of these agreements include options to extend the leases for up to an additional
 5 years and some include options to terminate the leases immediately. See also note 8e.

 r.
 New accounting pronouncements

 Recently
adopted accounting pronouncements

 In
June 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2016-13
 "Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial
Instruments." This guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected
credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.
The guidance became effective for the fiscal year beginning after December 15, 2022, including interim periods within that year. The Company
adopted the provisions of this update as of January 1, 2023, with no material impact on its consolidated financial statements.

 F- 13

 Recently
issued accounting pronouncements, not yet adopted

 In November 2023, the FASB issued ASU
2023-07 "Segment Reporting: Improvements to Reportable Segment Disclosures." This guidance expands public entities'
segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating
decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other
segment items, and interim disclosures of a reportable segment's profit or loss and assets. Public entities with a single reportable
segment are required to provide the new disclosures and all the disclosures required under ASC 280 "Segment Reporting". The
guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December
15, 2024, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an
entity's financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated
financial statements related disclosures.

 In December 2023, the FASB issued ASU
2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This guidance is intended to enhance the transparency
and decision-usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information
primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions.
ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard
retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on
its consolidated financial statements disclosures.

 NOTE 2 - SHORT-TERM DEPOSITS:

 Composition:

 2023

 2022

 Annual

 interest rate

 Amount

 Annual
 interest rate

 Amount

 Dollar deposits

 6.35 - 6.81
 %

 $
 95,279

 0.93 - 6.81
 %

 $
 111,513

 NOTE 3 - MARKETABLE SECURITIES:

 a.

 Composition:

 The Company's marketable securities
include investments in equity securities of DNA, Entera and the Transferred Warrants (as defined herein; for further details regarding
the Transferred Warrants, see note 4). As of December 31, 2022, marketable securities also included held to maturity securities.

 2023

 2022

 Short-term:

 DNA (see b below)

 $
 -

 $

 Entera (see c below)

 -

 Held to maturity securities (see d below)

 -

 3,306

 $
 -

 $
 3,743

 Long-term:

 DNA (see b below)

 $

 $
 -

 Entera (see c below)

 -

 Transferred Warrants (see note 4)

 1,440

 -

 $
 1,807

 $
 -

 F- 14

 NOTE 3 - MARKETABLE SECURITIES (continued):

 b.

 DNA

 DNA's ordinary shares are traded
on the Tel Aviv Stock Exchange. The fair value of those securities is measured at the quoted prices of the securities on the measurement
date.

 During the years ended December 31, 2023
and 2022, the Company did not sell any of DNA's ordinary shares. As of December 31, 2023, the Company owns approximately 1.4 % of
DNA's outstanding ordinary shares.

 The cost of the securities as of both
December 31, 2023 and 2022 was $ 595.

 c.

 Entera

 Entera ordinary shares have been traded
on the Nasdaq Capital Market since June 28, 2018. The Company measures the investment at fair value from such date, since it has a readily
determinable fair value (prior to such date the investment was accounted for as a cost method investment (amounting to $ 1)).

 d.

 Held to maturity securities

 The Company did not have any held to maturity
securities as of December 31, 2023.

 The amortized cost and estimated fair
value of held-to-maturity securities as of December 31, 2022, are as follows:

 December 31, 2022

 Amortized
 cost

 Gross
 unrealized
 gains (losses)

 Estimated
 fair value

 yield to
 maturity
 rate

 Short-term:

 Commercial bonds

 $
 3,258

 $
 ( 82
)

 $
 3,176

 1.07
 %

 Accrued interest

 -

 $
 3,306

 $
 ( 82
)

 $
 3,224

 NOTE 4 - INVESTMENTS, AT FAIR VALUE:

 Scilex Transaction

 On September 21, 2023 (the "Closing
Date"), the Company entered into and consummated the transactions (collectively, the "Transaction") contemplated by
the Scilex SPA with Scilex and Acquiom Agency Services LLC. Pursuant to the Scilex SPA, in exchange for the DIP Assumption and for the
ability to credit the amounts assumed under the DIP Assumption in exchange for certain equity securities of Scilex owned by Sorrento,
Scilex (i) issued to the Company (A) the Note, (B) a warrant to purchase up to an aggregate of 4,500,000 shares of common stock of Scilex,
par value $ 0.0001 per share ("Scilex Common Stock"), with an exercise price of $ 0.01 per share and containing certain restrictions
on exercisability (the "Closing Penny Warrant"), and (C) warrants to purchase up to an aggregate of 8,500,000 shares of Scilex
Common Stock (the "Subsequent Penny Warrants" and together with the Closing Penny Warrant, the "Penny Warrants"),
each with an exercise price of $ 0.01 per share and each with certain restrictions on exercisability, and (ii) caused certain outstanding
warrants to purchase up to an aggregate of 4,000,000 shares of Scilex Common Stock with an exercise price of $ 11.50 per share to be transferred
to the Company (the "Transferred Warrants" and together with the Penny Warrants, the "Warrants"). In addition,
on the Closing Date, Scilex reimbursed $ 1,910 of the Company's Transaction expenses pursuant to the Scilex SPA.

 F- 15

 NOTE 4 - INVESTMENTS, AT FAIR VALUE (continued):

 Pursuant to the terms of the Scilex
SPA, Scilex agreed to certain restrictions on additional issuances of equity securities. In connection with the Transaction, the Company
and Sorrento mutually agreed to terminate the Sorrento SPA and to release all claims the Company and Sorrento may have against one another,
and Scilex completed the acquisition of the Purchased Securities.

 The Note

 The principal of the Note issued on September
21, 2023 is $ 101,875, which includes accrued and unpaid interest of $ 875 under the Senior DIP Loan Agreement and $ 1,000 of fees added
to the principal amount of the Note. The Note matures on March 21, 2025 or upon an uncured event of default, subject to certain mandatory
prepayments, and bears interest at a rate per annum equal to Term SOFR (as defined in the Note) plus 8.5 % (subject to a Term SOFR floor
of 4.0 %), to be paid in-kind, by being capitalized and added to the principal amount of the Note on a monthly basis. The Scilex SPA provides
for principal payments of (i) $ 5,000 on December 21, 2023, (ii) $ 15,000 on March 21, 2024, and (iii) $ 20,000 on each of June 21, 2024,
September 21, 2024, and December 21, 2024, and for the entire remaining principal balance of the Note to be paid on March 21, 2025. If
the Note is not repaid in full on or prior to March 21, 2024, an exit fee equal to approximately $ 3,056 shall be payable upon repayment
of the Note in full.

 The Note constitutes senior secured indebtedness
of Scilex and is guaranteed by all existing or future formed, direct and indirect, domestic subsidiaries of Scilex and is secured by a
first priority security interest in and liens on all of the assets of Scilex, subject to customary and mutually agreed permitted liens
and except for certain specified exemptions.

 Mandatory prepayments under the Note are
required following the earlier of (a) April 1, 2024 and (b) the date upon which certain of Scilex's outstanding indebtedness are
repaid in full. Mandatory prepayments may be triggered by certain future equity and debt issuances by Scilex. Voluntary prepayments may
be made at Scilex's discretion; provided that, if made prior to the one-year anniversary of the Closing Date, Scilex will also be
required to pay a 50 % interest make-whole on the portion of the Note so prepaid.

 The Note includes customary events
of default, upon which the Note will bear interest at a default rate of Term SOFR plus 15.0 %, which shall be payable in-kind, by
being capitalized and added to the principal amount of the Note on a monthly basis. If the Note is accelerated upon an event of
default, Scilex is required to repay the principal amount of the Note at a mandatory default rate of 125 % of such principal amount
(together with 100 % of accrued and unpaid interest thereon and all other amounts due in respect of the Note).

 Until the obligations under the Note are
repaid in full, the Company has the right to designate one non-voting observer to attend meetings of the board of directors and committees
of Scilex and its subsidiaries.

 Pursuant to the terms of the Scilex SPA,
the Company received the first principal payment of $ 5,000 on December 21, 2023.

 Closing Penny Warrant

 The Closing Penny Warrant will be exercisable
upon the earliest of (i) March 14, 2025, (ii) the date on which the Senior Secured Note has been repaid in full and (iii) the Management
Sale Trigger Date (as defined therein), if any, and will expire on the date that is the fifth anniversary of the issuance date (i.e.,
September 21, 2028). For purposes of the Closing Penny Warrant (as well as the Subsequent Penny Warrants), the Management Sale Trigger
Date is generally the first date that either Dr. Henry Ji, Scilex's Executive Chairperson, or Mr. Jaisim Shah, Scilex's Chief
Executive Officer and President and a member of Scilex's Board of Directors, engages in certain sales or other similar transfers
of shares of Common Stock or other of the Issuer's or any of its subsidiaries' securities, subject to certain exceptions in
connection with financings or similar transactions. The exercise price of the Closing Penny Warrant is $ 0.01 per share, subject to adjustment.

 F- 16

 NOTE 4 - INVESTMENTS, AT FAIR VALUE (continued):

 Subsequent Penny Warrants

 Scilex issued four Subsequent Penny Warrants
to the Company, each for 2,125,000 shares of Scilex Common Stock, one of which shall vest and become exercisable on the date that is the
later of (i) each of March 19, 2024, June 17, 2024, September 15, 2024 or December 14, 2024 (the "Subsequent Penny Warrant Vesting
Date") and (ii) the earliest of (A) March 14, 2025, (B) the date on which the Senior Secured Note has been repaid in full and (C)
the Management Sale Trigger Date (as defined therein), if any. Each Subsequent Penny Warrant will expire on the date that is the fifth
anniversary of the issuance date; provided that, if the Senior Secured Note is repaid in full prior to the Subsequent Penny Warrant Vesting
Date applicable to such Subsequent Penny Warrant, such Subsequent Penny Warrant will expire on the date the Senior Secured Note is repaid
in full. The Company may exercise the Penny Warrants by means of a "cashless exercise."

 The Penny Warrants may not be exercised
if the Company, together with its affiliates, would beneficially own in excess of 9.9 % of the number of shares of Scilex Common Stock
outstanding immediately after giving effect to such exercise; provided, that the Company may increase or decrease such limitation upon
61 days' prior notice to Scilex.

 Transferred Warrants

 The Transferred Warrants are listed on
the Nasdaq Capital Market, have an exercise price of $ 11.50 per share, are fully exercisable and expire on November 10, 2027.

 The Company accounted for the Transferred
Warrants as derivatives measured at fair value.

 The Company elected the fair value option
for the Note and the Penny Warrants in order to reduce operational complexity of bifurcating embedded derivatives. Changes in fair value
are recorded under financial income, net and include interest income on the Note.

 The valuation was performed, as of December
31, 2023, based on several scenarios which some of them took into account a partial or full early repayment of the Note. Each scenario
took into consideration the present value of the Note's cash flows (including the exit fee and the prepayment premium) and the Warrants'
value. The total value of the Transaction (and of each of its components) was valued on a weighted average of the different scenarios.

 The discount rate of the Note was based
on the B- rating Zero curve in addition to a risk premium which takes into account the credit risk of Scilex and ranged between 51.92 %
to 52.84 %.

 The fair value of the Transferred Warrants
was based on their closing price on the Nasdaq Capital Market.

 The fair value of the Penny Warrants
was calculated based on the closing price of the Scilex stock on the Nasdaq Capital Market, taking into account several scenarios which
assume a partial or full early repayment of the Note, when applicable.

 On the Closing Date, the fair value
of the Transaction was $ 101,875. As of December 31, 2023, the fair value of the Transaction was $ 110,188, split between the Note ($ 93,066,
of which $ 57,713 is presented under short-term investments at fair value and $ 35,353 is presented under long-term investments at fair
value), the Closing Penny Warrant ($ 9,180), the Subsequent Penny Warrants ($ 6,502), both presented under long-term investments at fair
value and the Transferred Warrants ($ 1,440) presented under long-term marketable securities. This resulted in a gain of $ 15,638, attributed
mainly to the change in fair value of the Note and the Warrants. The difference between the Note's fair value and aggregate unpaid
principal balance (which includes interest payable on maturity) is $ 7,801.

 F- 17

 NOTE 5 - OTHER NON-MARKETABLE EQUITY SECURITIES:

 On August 26, 2022, the Company entered
into a stock purchase agreement with Diasome Pharmaceuticals, Inc. ("Diasome"), a privately-held company, pursuant to which
the Company purchased shares of Series B preferred stock of Diasome for an aggregate purchase price of approximately $ 2,700. Following
the purchase, the Company holds less than 5 % of the issued and outstanding stock of Diasome. The stock purchase agreement provides the
Company with the option to purchase additional preferred shares of stock on a pro rata basis at similar terms to the terms and conditions
of the current round contingent upon Diasome achieving certain milestones.

 The Company's non-marketable equity
securities are an investment in a company without a readily determinable fair value. The Company accounts for this investment under the
measurement alternative in ASC 321, whereby the equity investment is recorded at cost, less impairment. The carrying amount is subsequently
remeasured to its fair value in accordance with the provisions of ASC 820 when observable price changes occur as of the date the transaction
occurred, or it is impaired. Any adjustments to the carrying amount are recorded in the statements of comprehensive income (loss).

 During the year ended December 31, 2023,
the Company recorded an $ 824 increase in value due to the closing in June 2023 of a Series C preferred investment round in Diasome. The
change was recorded using the transaction price of similar securities issued by Diasome, adjusted for contractual rights and obligations
of the securities held by the Company.

 NOTE 6 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES:

 Composition:

 2023

 2022

 Accounts payable

 $

 $
 2,175

 Payroll and related accruals

 Institutions

 -

 Accrued liabilities

 1,443

 $
 1,609

 $
 4,158

 NOTE 7 - SHORT-TERM BORROWINGS:

 On August 8, 2023, the Company borrowed
an aggregate of $ 99,550 pursuant to loan agreements from Israel Discount Bank Ltd. (the "Short-Term Borrowings"). The
Short-Term Borrowings mature on dates ranging from August 11, 2023 to May 24, 2024, bear interest ranging from 6.66 % to 7.38 %, and are
secured by certificates of deposits issued by Israel Discount Bank Ltd. having an aggregate face amount of $ 99,550. The net proceeds
of the Short-Term Borrowings were used to fund the Transaction (for further details, see note 4). The Short-Term Borrowings are paid
in one payment of principal and interest at each respective maturity. As of December 31, 2023, $ 50,000 was repaid under the Short-Term
Borrowings.

 The aggregate remaining annual principal payments on debt until maturity are as follows:

 Annual

Principal
 Payments

 2024

 49,550

 Total

 $
 49,550

 NOTE 8 - COMMITMENTS:

 a.
 In March 2011, the Subsidiary sold shares of its investee company, Entera, to DNA, retaining 117,000 ordinary shares (after giving effect to a stock split by Entera in July 2018). In consideration for the shares sold to DNA, the Company received, among other payments, ordinary shares of DNA (see also note 3).

 As part of this agreement, the Subsidiary entered into a patent transfer agreement (the "Patent Transfer Agreement"), according to which the Subsidiary assigned to Entera all of its rights to a patent application related to the oral administration of proteins that it has licensed to Entera since August 2010, in return for royalties of 3 % of Entera's net revenues and a license back of that patent application for use in respect of diabetes and influenza. As of December 31, 2023, Entera had not paid any royalties to the Subsidiary. On December 11, 2018, Entera announced that it had entered into a research collaboration and license agreement with Amgen, Inc. ("Amgen"). To the extent that the license granted to Amgen results in net revenues as defined in the Patent Transfer Agreement, the Subsidiary will be entitled to the aforementioned royalties. As part of a consulting agreement with a third party dated February 15, 2011, the Subsidiary is obliged to pay this third party royalties of 8 % of the net royalties received in respect of the patent that was sold to Entera in March 2011.

 F- 18

 NOTE 8 - COMMITMENTS (continued):

 b.
 According to the HTIT License Agreement, the Company granted HTIT an exclusive commercialization license in the territory of the People's Republic of China, Macau and Hong Kong (the "Territory"), related to the Company's oral insulin capsule, ORMD-0801 (the "Product"). Pursuant to the HTIT License Agreement, HTIT will conduct, at its own expense, certain pre-commercialization and regulatory activities with respect to the Subsidiary's technology and ORMD-0801 capsule, and will pay to the Subsidiary (i) royalties of 10% on net sales of the related commercialized products to be sold by HTIT in the Territory ("Royalties"), and (ii) an aggregate of $37,500, of which $3,000 was payable immediately, $8,000 will be paid subject to the Company entering into certain agreements with certain third parties, and $26,500 will be paid upon achievement of certain milestones and conditions. In the event that the Company does not meet certain conditions, the Royalties rate may be reduced to a minimum of 8%. Following the final expiration of the Company's patents covering the technology in the Territory in 2033, the Royalties rate may be reduced, under certain circumstances, to 5%.

 The royalty payment obligation shall apply during the period of time beginning upon the first commercial sale of the Product in the Territory, and ending upon the later of (i) the expiration of the last-to-expire licensed patents in the Territory; and (ii) 15 years after the first commercial sale of the Product in the Territory.

 The HTIT License Agreement shall remain in effect until the expiration of the royalty term. The License Agreement contains customary termination provisions.

 Among others, the Company's involvement through the product submission date includes consultancy for the pre-commercialization activities in the Territory, as well as advisory services to HTIT on an ongoing basis.

 As of December 31, 2023, the Company has received milestone payments in an aggregate amount of $ 20,500 as follows: the initial payment of $ 3,000 was received in January 2016. Following the achievement of certain milestones, the second and third payments of $ 6,500 and $ 4,000, respectively, were received in July 2016, the fourth milestone payment of $ 4,000 was received in October 2016 and the fifth milestone payment of $ 3,000 was received in January 2019.

 On August 21, 2020, the Company received a letter from HTIT, disputing certain pending payment obligations of HTIT under the TLA. The payment obligation being disputed is $ 6,000, out of which only an amount of $ 2,000 has been received and has been included in deferred revenue in each of the consolidated balance sheets as of the years ended December 31, 2023, and December 31, 2022. The Company wholly disputed the claims made by HTIT and is planning to resolve any such claims as part of the Company's discussions with HTIT.

 For the Company's revenue recognition policy, see note 1m.

 On January 22, 2024, the Company and its wholly-owned subsidiary, Oramed Ltd., entered into a Joint Venture Agreement (the "JV Agreement"), with Hefei Tianhui Biotech Co., Ltd. ("HTIT Biotech"), and Technowl Limited, a wholly-owned indirect subsidiary of HTIT Biotech ("HTIT Sub," and together with HTIT Biotech, "HTIT"), pursuant to which, subject to the terms and conditions set forth in the JV Agreement, the parties will establish a joint venture (the "JV"), based on the Company's oral drug delivery technology. For further details, see note 14.

 F- 19

 NOTE 8 - COMMITMENTS (continued):

 c.
 On November 13, 2022, the Company entered the Medicox License Agreement with Medicox.

 The Medicox License Agreement grants Medicox an exclusive license to apply for regulatory approval and distribute ORMD-0801 in the Republic of Korea. The Medicox License Agreement is for ten years, but the parties have the right to terminate it with a 180 days-notice.

 Medicox will comply with agreed distribution targets and will purchase ORMD-0801 at an agreed upon transfer price per capsule. In addition, Medicox will pay the Company up to $ 15,000 in developmental milestones, $ 2,000 of which were received by the Company in 2022, and up to 15 % royalties on gross sales. Medicox will also be responsible for obtaining a regulatory approval in the Republic of Korea.

 For the Company's revenue recognition policy, see note 1m.

 d.

 Grants from the Israel Innovation Authority ("IIA")

 Under the terms of the Company's
funding from the IIA, royalties of 3 % are payable on sales of products developed from a project so funded, up to a maximum amount equaling
 100 %- 150 % of the grants received (dollar linked) with the addition of interest at an annual rate based on SOFR.

 At the time the grants were received,
successful development of the related projects was not assured. The total amount that was received through December 31, 2023 was $ 2,208
($ 2,559 including interest). All grants were received before the year ended August 31, 2020 and recorded as a reduction of research and
development expenses at that time.

 As of December 31, 2023, the liability to the IIA was $ 59.

 The royalty expenses which are related
to the funded project were recognized in cost of revenues in the relevant periods.

 e.

 Leases

 On August 2, 2020, the Subsidiary entered
into a lease agreement for its facilities in Israel. The lease agreement is for a period of 60 months commencing September 1, 2020. The
Subsidiary has the option to extend the period for another 60 months. The annual lease payment, including management fees, as of December
31, 2023 is approximately NIS 435 ($ 120). As security for its obligation under this lease agreement, the Company provided a bank guarantee
in an amount equal to three monthly lease payments. For accounting purposes, the lease period is 60 months.

 On December 2, 2021, the Subsidiary entered
into an addendum (the "Addendum") to the current lease agreement for its facilities in Israel. The Addendum refers to the
lease of an additional space of 264 square meters for a period of 60 months commencing February 1, 2022. The Subsidiary has the option
to extend the period for another 60 months. The annual lease payment, including management fees, is approximately NIS 435 ($ 120). As security
for its obligation under the Addendum, the Company provided a bank guarantee in an amount equal to three monthly lease payments. For accounting
purposes, the lease commenced on February 1, 2022 as the Subsidiary did not have access to the space until that date. For accounting purposes,
the lease period is 60 months.

 The total expenses related to leases were
$ 236 for the year ended December 31, 2023, and $ 264 for the year ended December 31, 2022.

 F- 20

 NOTE 8 - COMMITMENTS (continued):

 The right-of-use asset and lease liability
are initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Company's incremental borrowing rate based on the information available at the date of determining
the present value of the lease payments. The Company's incremental borrowing rate is estimated to approximate the interest rate
on similar terms and payments and in economic environments where the leased asset is located.

 The Company has various operating leases
for office space and vehicles that expire through 2027. Below is a summary of the Company's operating right-of-use assets and operating
lease liabilities as of December 31, 2023 and 2022:

 2023

 2022

 Operating right-of-use assets

 $

 $

 Operating lease liabilities, current

 Operating lease liabilities long-term

 Total operating lease liabilities

 $

 $

 Weighted Average of Remaining Lease Term

 Operating leases

 2.5

 3.41

 Weighted Average Discount Rate

 Operating leases

 3.15
 %

 3.15
 %

 Operating cash flows from
operating lease for the years ended December 31, 2023 and 2022 were $ 267 and $ 214, respectively.

 Lease payments for the Company's
right-of-use assets over the remaining lease periods as of December 31, 2023 are as follows:

 2023

 2024

 $

 2025

 2026

 2027

 Total undiscounted lease payments

 Less: Interest*

 ( 25
)

 Present value of lease liabilities

 $

 *
 Future lease payments were discounted by 3 %- 5.75 % interest rate.

 f.

 Legal expenses

 Following the Company's 2019 annual
meeting of stockholders, a complaint was filed in the Court of Chancery of the State of Delaware against the Company and the members of
the Board of Directors. On April 27, 2022, the Court of Chancery of the State of Delaware approved the terms of a settlement between the
Company and the plaintiff in the complaint, awarding the plaintiff an amount of $ 850 in attorneys' fees, which was paid on April
28, 2022 and included in general and administrative expenses in the first quarter of 2022. All other details of the settlement were previously
agreed by the parties and acted upon at the Company's 2021 annual meeting of stockholders.

 F- 21

 NOTE 8 - COMMITMENTS (continued):

 g.

 Investment in Diasome Pharmaceuticals, Inc.

 On August 26, 2022, the Company entered
into a stock purchase agreement with Diasome Pharmaceuticals, Inc. ("Diasome") pursuant to which the Company purchased shares
of Series B preferred stock of Diasome for an aggregate purchase price of approximately $ 2,700. Following the purchase, the Company holds
less than 5 % of the issued and outstanding stock of Diasome on a diluted basis. The stock purchase agreement provides the Company with
the option to purchase additional preferred shares of stock on a pro rata basis at similar terms to the terms and conditions of the current
round contingent upon Diasome achieving certain milestones.

 The Company accounts for the investment
under the measurement alternative in ASC 321, whereby the equity investment is recorded at cost, less impairment. The carrying amount
will be subsequently remeasured to its fair value in accordance with the provisions of ASC 820 when observable price changes occur as
of the date the transaction occurred, or it is impaired. Any adjustments to the carrying amount are recorded in net income.

 NOTE 9 - STOCKHOLDERS' EQUITY:

 The following are the significant capital
stock transactions that took place during the year ended December 31, 2023 and 2022:

 a.
 On July 15, 2021, the Company entered into a new equity distribution agreement (the "New Equity Distribution Agreement") with Canaccord Genuity, pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $ 100,000 from time to time through Canaccord Genuity. The New Equity Distribution Agreement replaced the Equity Distribution Agreement, once it had been exhausted. Any shares sold will be sold pursuant to the Company's effective shelf registration statement on Form S-3 including a prospectus dated July 15, 2021. The Company paid the sales agent a cash commission of 3.0 % of the gross proceeds of the sale of any shares sold through the sales agent under the New Equity Distribution Agreement. As of December 31, 2022, 273,997 shares were respectively issued under the New Equity Distribution Agreement for aggregate net proceeds of $ 5,129.

 b.
 On September 1, 2021, the Company entered into a controlled equity offering agreement (the "Cantor Equity Distribution Agreement") with Cantor Fitzgerald & Co., as agent, pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $ 100,000, through a sales agent, subject to certain terms and conditions. Any shares sold will be sold pursuant to the Company's effective shelf registration statement on Form S-3 including a prospectus dated July 26, 2021 and prospectus supplement dated September 1, 2021. The Company paid the sales agent a cash commission of 3.0 % of the gross proceeds of the sale of any shares sold through the sales agent under the Cantor Equity Distribution Agreement. As of December 31, 2023 and through March 6, 2024, 1,971,447 shares were issued under the Cantor Equity Distribution Agreement for aggregate net proceeds of $ 26,253.

 F- 22

 NOTE 9 - STOCKHOLDERS' EQUITY (continued):

 c.
 On November 3, 2021, the Company entered into a securities purchase agreement with several institutional and accredited investors (the "Purchasers"), pursuant to which the Company agreed to sell, in a registered direct offering (the "Offering"), an aggregate of 2,000,000 shares of the Company's common stock to the Purchasers for an offering price of $ 25 per share. The closing of the sale of the shares occurred on November 5, 2021. The net proceeds to the Company from the Offering, after deducting the placement agent's fees and expenses and the Company's Offering expenses, were approximately $ 46,375.

 d.
 As of December 31, 2023, the Company had outstanding warrants exercisable starting February 25, 2020 for 20,000 shares of common stock at an exercise price of $ 4.13 per share and expiring on April 15, 2029.

 The following table presents the warrant
activity for the years ended December 31, 2023 and 2022:

 Year ended December 31,

 2023

 2022

 Warrants

 Weighted-
 Price

 Warrants

 Weighted-
 Price

 Warrants outstanding at beginning of year

 150,705

 $
 4.71

 158,375

 $
 4.78

 Issued

 -

 $
 -

 -

 $
 -

 Exercised

 -

 $
 -

 4,200

 $
 4.80

 Expired

 130,705

 $
 4.80

 3,470

 $
 7.81

 Warrants outstanding at end of year

 20,000

 $
 4.13

 150,705

 $
 4.71

 Warrants exercisable at end of year

 20,000

 $
 4.13

 150,705

 $
 4.71

 NOTE 10 - STOCK-BASED COMPENSATION:

 The Company makes awards only under
the 2019 Plan, under which, the Company had reserved a pool of 7,500,000 shares of the Company's common stock which may be issued
at the discretion of the Board of Directors from time to time. Under this 2019 Plan, each option or RSU is exercisable into one share
of common stock of the Company. The options may be exercised after vesting and in accordance with vesting schedules which will be determined
by the Board of Directors for each grant. The maximum term of the options and RSUs is 10 years.

 The following are the significant stock
options and RSUs transactions with employees, board members and non-employees made during the years ended December 31, 2023 and 2022:

 a.
 On January 3, 2022, the Company granted an aggregate of 150,000 shares of the Company's common stock to its President and Chief Executive Officer. The total fair value of these shares on the date of grant was $ 2,084, using the quoted closing market share price of $ 13.89 on the Nasdaq Capital Market on the date of grant.

 b.
 On January 3, 2022, the Company granted an aggregate of 207,500 RSUs representing a right to receive shares of the Company's common stock to the Company's employees and members of the Board of Directors as follows: 63,000 to the President and Chief Executive Officer; 42,000 to the Chief Scientific Officer; 21,000 to the Chief Operating and Business Officer, 19,000 to the Chief Financial Officer and Treasurer, 19,000 to the Chief Commercial Officer, 18,000 to the Chief Legal Officer and Secretary (effective as of the time his employment with the Company commenced on January 9, 2022), an aggregate of 24,000 to four board members and 1,500 to an employee. The RSUs vest in four equal annual installments on each of January 1, 2023, 2024, 2025 and 2026. The total fair value of these RSUs on the date of grant was $ 2,849, using the quoted closing market share price of $ 13.89 on the Nasdaq Capital Market on the date of grant and $ 12.03 for the Chief Legal Officer's grant (equivalent to the closing price of the Company's common stock on January 10, 2022, which represents the first trading date after his employment with the Company commenced).

 F- 23

 c.
 On January 3, 2022, the Company granted options to purchase an aggregate of 321,500 shares of the Company's common stock to the Company's employees and board members at an exercise price of $ 13.89 per share (equivalent to the closing price of the Company's common stock on the date of grant) as follows: 107,000 to the President and Chief Executive Officer; 72,000 to the Chief Scientific Officer; 36,000 to the Chief Operating and Business Officer, 32,000 to the Chief Financial Officer and Treasurer and 32,000 to the Chief Commercial Officer, an aggregate of 40,000 to four board members and 2,500 to an employee. The options vest in four equal annual installments on each of January 1, 2023, 2024, 2025 and 2026. As of December 31, 2023, 82,875 of such options are vested. These options expire on January 3, 2032. The total fair value of these options on the date of grant was $ 2,630, using the Black Scholes option-pricing model and was based on the following assumptions: stock price of $ 13.89; dividend yield of 0 % for all years; expected volatility of 63.05 %; risk-free interest rates of 1.46 %; and expected term of 6.25 years.

 d.
 On January 3, 2022, the Company granted options to purchase an aggregate of 30,000 shares of the Company's common stock to the Company's Chief Legal Officer and Secretary (effective as of the time his employment with the Company commenced on January 9, 2022), at an exercise price of $ 12.03 per share (equivalent to the closing price of the Company's common stock on January 10, 2022, which represents the first trading date after his employment with the Company commenced). The options vest in four equal annual installments on each of January 1, 2023, 2024, 2025 and 2026. As of December 31, 2022, none of such options are vested. These options expire on January 3, 2032. The total fair value of these options on the date of grant was $ 214, using the Black Scholes option-pricing model and was based on the following assumptions: stock price of $ 12.03; dividend yield of 0 % for all years; expected volatility of 63.22 %; risk-free interest rates of 1.60 %; and expected term of 6.25 years.

 e.
 On May 2, 2022, the Company granted 4,500 RSUs representing a right to receive shares of the Company's common stock to Mr. Yadin Rozov, a former member of the Company's board of directors. The RSUs shall vest in four equal annual installments on each of May 2, 2023, 2024, 2025 and 2026. The total fair value of these RSUs on the date of grant was $ 23, using the quoted closing market share price of $ 5.14 on the Nasdaq Capital Market on the last trading day before the date of grant.

 f.
 On May 2, 2022, the Company granted options to purchase an aggregate of 7,500 shares of the Company's common stock to Mr. Yadin Rozov, a former member of the Company's board of directors, at an exercise price of $ 5.14 per share (equivalent to the closing price of the Company's common stock on the last trading day before the date of grant). The options shall vest in four equal annual installments on each of May 2, 2023, 2024, 2025 and 2026. As of December 31, 2022, none of such options are vested. These options expire on May 2, 2032. The total fair value of these options on the date of grant was $ 24, using the Black Scholes option-pricing model and was based on the following assumptions: stock price of $ 5.14; dividend yield of 0 % for all years; expected volatility of 65.26 %; risk-free interest rates of 3.03 % and expected term of 6.26 years.

 g.
 On July 28, 2022, the Company granted an aggregate of 404,100 RSUs representing a right to receive shares of the Company's common stock to the Company's executive officers, employees and board members. The RSUs granted to certain employees, executive officers and board members shall vest in three equal annual installments on each of January 1, 2024, 2025 and 2026 and the RSUs granted to certain employees will vest in three equal annual installments on each of January 1, 2023, 2024 and 2025. The total fair value of these RSUs on the date of grant was $ 3,423, using the quoted closing market share price of $ 8.47 on the Nasdaq Capital Market on the date of grant.

 F- 24

 h.
 On July 28, 2022, the Company granted 34,000 shares of the Company's common stock to each of the Company's President and Chief Executive Officer and Chief Scientific Officer. These shares vested in full on August 1, 2022. The total fair value of these shares on the date of grant was $ 576, using the quoted closing market share price of $ 8.47 on the Nasdaq Capital Market on the date of grant.

 i.
 On July 28, 2022, the Company granted an aggregate of 175,500 performance based RSUs ("PSUs") representing a right to receive shares of the Company's common stock to the Company's executive officers. The PSUs were to vest in two installments upon achievement of the following milestones: (i) two thirds were to vest upon receipt of positive topline data in the first oral insulin Phase 3 clinical trial; and (ii) one third was to vest upon completion of enrollment of the second oral insulin Phase 3 clinical trial by June 30, 2023. Following the results of the ORA-D-013-1 Phase 3 trial and the termination of the ORA-D-013-2 Phase 3 trial, these performance goals have not been met and the PSUs did not vest. The total fair value of these PSUs on the date of grant was $ 1,486, using the quoted closing market share price of $ 8.47 on the Nasdaq Capital Market on the date of grant.

 j.
 On September 18, 2022, Oravax granted options to purchase an aggregate of 328,318 shares of Oravax's common stock to employees and board members of Oravax and to other service providers at an exercise price of $ 3.91 per share. The options will vest in four annual installments as follows: the first installment vested immediately on the grant date and the remaining three installments shall vest on each of December 31, 2022, 2023 and 2024. These options expire on September 18, 2032. The total fair value of these options on the date of grant was $ 665, using the Black Scholes option pricing model and was based on the following assumptions: stock price of $ 3.91; dividend yield of 0 % for all years; expected volatility of 52.87 %; risk-free interest rates of 3.62 %; and expected term of 5.49 years.

 k.
 On April 17, 2023, the Company granted an aggregate of 868,500 RSUs representing a right to receive shares of the Company's common stock to executive officers and board members of the Company. The RSUs will vest in twelve equal quarterly installments starting May 1, 2023. The total fair value of these RSUs on the date of grant was $ 1,980, using the quoted closing market share price of $ 2.28 on the Nasdaq Capital Market on the date of grant.

 l.
 On April 17, 2023, the Company granted an aggregate of 245,500 performance based RSUs ("PSUs") representing a right to receive shares of the Company's common stock to executive officers of the Company. The PSUs vested on May 26, 2023, upon the Company's common stock achieving and maintaining a specified price per share. The total fair value of these PSUs on the date of grant was $ 550, using the Monte-Carlo model.

 m.
 On May 1, 2023, the Company granted an aggregate of 20,000 RSUs representing a right to receive shares of the Company's common stock to a new board member. The RSUs will vest in twelve quarterly installments starting May 1, 2023. The total fair value of these RSUs on the date of grant was $ 49, using the quoted closing market share price of $ 2.45 on the Nasdaq Capital Market on the date of grant.

 n.
 During 2023, 132,000 stock options and 110,917 unvested RSUs were forfeited, due to termination of the employment of an executive officer, resulting in a reversal of $ 663 in sales and marketing expenses.

 F- 25

 o.

 Options to employees, directors and non-employees

 The fair value of each option grant is
estimated on the date of grant using the Black Scholes option-pricing model or Monte Carlo model with the following range of assumptions:

 For options granted
 in the year ended

 2023

 2022

 Expected option life (years)

 -

 6.25 - 6.26

 Expected stock price volatility (%)

 -

 63.05 - 65.26

 Risk free interest rate (%)

 -

 1.46 - 3.03

 Expected dividend yield (%)

 -

 0.0

 A summary of the status of the stock options
granted to employees and directors as of December 31, 2023 and 2022 and changes during the year ended on those dates, is presented below:

 Year ended December 31,

 2023

 2022

 of
 options

 price

 of
 options

 price

 $

 $

 Options outstanding at beginning of year

 2,041,676

 8.47

 1,942,117

 7.14

 Changes during the year:

 Granted

 -

 -

 359,000

 13.55

 Forfeited

 ( 132,000
)

 14.81

 ( 48,334
)

 10.59

 Expired

 -

 -

 ( 144,000
)

 4.08

 Exercised

 -

 -

 ( 67,107
)

 5.03

 Options outstanding at end of year

 1,909,676

 8.03

 2,041,676

 8.47

 Options exercisable at end of year

 1,479,426

 7.15

 1,261,426

 6.86

 Weighted average fair value of options granted during the year

 $
 -

 $
 7.99

 Expenses recognized in respect of stock
options granted to employees and directors, for the years ended December 31, 2023 and 2022, were $ 811 and $ 2,662, respectively.

 No options were granted during the year
ended December 31, 2023. The total intrinsic value of employees' options exercised during the year ended December 31, 2022 was $ 243.

 F- 26

 The following table presents summary information
concerning the options granted to employees and directors outstanding as of December 31, 2023:

 prices

 Number outstanding

 Remaining
 Contractual
 Life

 price

 $

 Years

 $

 1-6

 857,250

 5.85

 3.94

 6.23-9.12

 283,008

 3.80

 7.96

 10.40-20.19

 769,418

 6.52

 12.62

 1,909,676

 5.82

 8.03

 1,479,426 options granted to employees
and directors were outstanding and exercisable as of December 31, 2023, compared to 1,261,426 as of December 31, 2022.

 As of December 31, 2023, there were $ 707
of unrecognized compensation costs related to non-vested options previously granted to employees and directors. The unrecognized compensation
costs are expected to be recognized over a weighted average period of 0.8 years.

 A summary of the status of the stock options
granted to non-employees outstanding as of December 31, 2023 and 2022, and changes during the years ended December 31, 2023 and 2022,
is presented below:

 2023

 2022

 of
 options

 price

 of
 options

 price

 $

 $

 Options outstanding at beginning of year

 4.31

 51,500

 4.26

 Changes during the year:

 Granted

 -

 -

 -

 -

 Exercised

 -

 -

 ( 4,500
)

 3.74

 Forfeited

 -

 -

 -

 -

 Expired

 -

 -

 -

 -

 Options outstanding at end of year

 4.31

 4.31

 Options exercisable at end of year

 4.31

 4.31

 Weighted average fair value of options granted during the year

 $
 -

 $
 -

 The Company recorded no stock-based compensation
related to non-employees' awards during the years ended December 31, 2023 and 2022.

 During the year ended December 31, 2023,
no options were exercised. During the year ended December 31, 2022, 4,500 options were exercised by non-employees for a total intrinsic
value of $ 24.

 F- 27

 The following table presents summary information
concerning the options granted to non-employees outstanding as of December 31, 2023:

 Range of
 prices $

 Number outstanding

 Remaining
 Contractual
 Life Years

 Price $

 3.74 -5.08

 5.98

 4.31

 47,000 options granted to non-employees
were outstanding and exercisable as of December 31, 2023.

 As of December 31, 2023, there were no
unrecognized compensation costs related to non-vested options previously granted to non-employees.

 p.

 Restricted stock units

 The following table summarizes the activities
for unvested RSUs granted to employees and directors for the years ended December 31, 2023 and 2022:

 2023

 2022

 Number of RSUs

 Outstanding at the beginning of period

 1,561,570

 801,303

 Granted

 1,134,000

 1,009,600

 Issued

 ( 574,791

)

 ( 217,333

)

 Forfeited

 ( 286,417

)

 ( 32,000

)

 Outstanding at the end of the period

 1,834,362

 1,561,570

 Vested during the period

 521,625

 218,000

 Vested and unissued at period end

 212,136

 265,302

 The Company recorded compensation expenses
related to RSUs of $ 3,210 for the year ended December 31, 2023 and $ 8,365 for the year ended December 31, 2022.

 As of December 31, 2023, there were unrecognized
compensation costs of $ 2,693 related to RSUs. The unrecognized compensation costs are expected to be recognized over a weighted average
period of 1 year.

 F- 28

 The following table summarizes the activities
for unvested RSUs granted to non-employees for the years ended December 31, 2023 and 2022:

 2023

 2022

 Number of RSUs

 Outstanding at the beginning of period

 4,000

 8,000

 Granted

 -

 -

 Issued

 ( 4,000
)

 ( 4,000
)

 Forfeited

 -

 -

 Outstanding at the end of the period

 -

 4,000

 Vested during the period

 4,000

 4,000

 Vested and unissued at period end

 -

 -

 The Company recorded compensation expenses
related to RSUs of $ 26 for the year ended December 31, 2023, compared to $ 92 compensation expenses recorded for the year ended December
31, 2022.

 As of December 31, 2023, there were no
unrecognized compensation costs related to RSUs.

 NOTE 11 - FINANCIAL INCOME AND EXPENSES:

 a.
 Financial income

 2023

 2022

 Income from interest on the Senior DIP Loan Agreement and deposits

 $
 8,016

 $
 3,473

 Exchange rate differences, net

 -

 Income from interest on corporate bonds

 Revaluation of securities, net

 16,461

 -

 Other

 $
 24,630

 $
 3,754

 b.
 Financial expenses

 2023

 2022

 Exchange rate differences, net

 $

 $
 -

 Bank and broker commissions

 Loss from securities, net

 -

 Revaluation of securities, net

 Fees regarding Scilex transaction

 1,514

 -

 Interest expenses

 2,037

 -

 $
 3,773

 $

 F- 29

 NOTE 12 - TAXES ON INCOME:

 Taxes on income included in the consolidated
statements of operations represent current taxes due to taxable income of the Company and its Israeli subsidiary.

 a.

 Corporate taxation in the U.S.

 The applicable corporate tax rate for
the Company is 21 %.

 As of December 31, 2023, the Company and
Oravax Medical Inc. had an accumulated tax loss carryforward of approximately $ 28,000 (as of December 31, 2022, $ 24,000). Under U.S. tax
laws, subject to certain limitations, carryforward tax losses originating in tax years beginning after January 1, 2018, have no expiration
date, but they are limited to 80 % of the company's taxable income in any given tax year. Carryforward tax losses originating in
tax years beginning prior to January 1, 2018, expire 20 years after the year in which incurred. In the case of the Company, subject to
potential limitations in accordance with the relevant law, the net loss carryforward will expire in the years 2026 through 2037.

 b.

 Corporate taxation in Israel

 The Subsidiary is taxed in accordance
with Israeli tax laws. The corporate tax rate applicable to 2023 and 2022 is 23 %.

 As of December 31, 2023, the Subsidiary
and Oravax Medical Ltd. had an accumulated tax loss carryforward of approximately $ 102,000 (as of December 31, 2022, approximately $ 87,000).
Under the Israeli tax laws, carryforward tax losses have no expiration date.

 c.
 Deferred income taxes

 2023

 2022

 In respect of:

 Net operating loss carryforward

 $
 27,757

 $
 27,610

 Research and development expenses

 2,731

 5,195

 Revaluation of investments

 ( 2,611
)

 -

 Other temporary differences

 -

 Less - valuation allowance

 ( 28,473
)

 ( 32,805
)

 Net deferred tax assets

 $
 -

 $
 -

 Deferred taxes are determined based on
temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates
and laws that will be in effect when the differences are expected to reverse.

 Realization of deferred tax assets is
dependent upon sufficient future taxable income during the period that deductible temporary differences and carryforwards are expected
to be available to reduce taxable income. As the achievement of required future taxable income is uncertain, the Company recorded a full
valuation allowance.

 F- 30

 NOTE 12 - TAXES ON INCOME (continued):

 d.
 Income (Loss) before taxes on income and income taxes included in the income statements of operations

 2023

 2022

 Income (loss) before taxes on income:

 U.S.

 $
 11,604

 $
 ( 11,164
)

 Outside U.S.

 ( 6,516
)

 ( 26,500
)

 $
 5,088

 $
 ( 37,664
)

 Taxes on income (tax benefit):

 Current:

 U.S.

 -

 -

 Outside U.S.

 -

 ( 100
)

 $
 -

 $
 ( 100
)

 e.

 Reconciliation of the statutory tax benefit to effective tax expense

 Following is a reconciliation of the theoretical
tax expense, assuming all income is taxed at the regular tax rates applicable to companies in the United States, and the actual tax expense:

 2023

 2022

 Income (loss) before income taxes as reported in the consolidated statement of comprehensive loss

 $
 5,088

 $
 ( 37,664
)

 Statutory tax (benefit) expense – 21 %

 1,068

 ( 7,909
)

 Increase (decrease) in income taxes resulting from:

 Change in the balance of the valuation allowance for deferred tax

 ( 4,332
)

 7,290

 Disallowable deductions

 1,152

 Influence of different tax rate applicable to the Subsidiary and Oravax Medical Ltd.

 ( 305
)

 ( 533
)

 Prior year true-up

 2,838

 -

 Withholding tax, see note 12d above

 -

 Uncertain tax position

 -

 -

 Taxes on income for the reported year

 $
 -

 $

 F- 31

 NOTE 12 - TAXES ON INCOME (continued):

 f.

 Uncertainty in Income Taxes

 ASC 740, "Income Taxes" requires
significant judgment in determining what constitutes an individual tax position as well as assessing the outcome of each tax position.
Changes in judgment as to recognition or measurement of tax positions can materially affect the estimate of the effective tax rate and
consequently, affect the operating results of the Company. The Company recognizes interest and penalties related to its tax contingencies
as income tax expense.

 The following table summarizes the activity
of the Company unrecognized tax benefits:

 2023

 2022

 Balance at Beginning of Year

 $

 $

 Decrease in uncertain tax positions for the current year

 -

 -

 Balance at End of Year

 $

 $

 The Company does not expect unrecognized
tax expenses to change significantly over the next 12 months.

 The Company is subject to U.S. Federal
income tax examinations for the tax years of 2020 through 2022.

 The Subsidiary is subject to Israeli income
tax examinations for the tax years of 2017 through 2022.

 g.
 Valuation Allowance Rollforward

 Period ended

 Balance at

 beginning

 of period

 Additions

 Balance at

 end of

 period

 Allowance in respect of carryforward tax losses:

 Year ended December 31, 2023

 $
 32,805

 $
 ( 4,332
)

 $
 28,473

 Year ended December 31, 2022

 26,659

 6,146

 32,805

 F- 32

 NOTE 13 - RELATED PARTY TRANSACTIONS:

 a.
 On July 1, 2008, the Subsidiary entered into two consulting agreements with KNRY Ltd. ("KNRY"), an Israeli company owned by the Chief Scientific Officer, whereby the President and Chief Executive Officer and the Chief Scientific Officer, through KNRY, provide services to the Company (the "Consulting Agreements"). The Consulting Agreements are both terminable by either party upon 140 days, prior written notice. The Consulting Agreements, as amended, provide that KNRY will be reimbursed for reasonable expenses incurred in connection with performance of the Consulting Agreements and that the monthly consulting fee paid to the President and Chief Executive Officer and the Chief Scientific Officer is NIS 146,705 ($ 40) and 106,400 ($ 29), respectively.

 In addition to the Consulting Agreements,
based on a relocation cost analysis, the Company paid for certain direct costs, related taxes and expenses incurred in connection with
the relocation of the President and Chief Executive Officer to New York. During the ten month period ended October 31, 2022, such relocation
expenses totaled $ 331.

 Following the relocation of the President
and Chief Executive Officer to the State of Israel, the Company entered into two agreements with the President and Chief Executive Officer,
replacing his above-mentioned consulting agreement through KNRY, substantially on the same terms, in order to allocate his time and services
between the Company and the Subsidiary.

 Effective November 1, 2022, the Company
entered into a consulting agreement with Shnida Ltd. ("Shnida"), whereby the President and Chief Executive Officer, through
Shnida, provides services as President and Chief Executive Officer of the Company. The agreement is terminable by either party upon 140
days prior written notice. The agreement provides that Shnida will be reimbursed for reasonable expenses incurred in connection with performance
of the agreement. Effective as of January 1, 2024, the President and Chief Executive Officer receives a monthly consulting fee of NIS
 96,825 ($ 27), plus value added tax. Pursuant to the agreement, Shnida and the President and Chief Executive Officer each agree that during
the term of the agreement and for a 12-month period thereafter, none of them will compete with the Company nor solicit employees of the
Company.

 In addition, the Company, through the
Subsidiary, has entered into an employment agreement with the President and Chief Executive Officer, effective as of November 1, 2022,
pursuant to which, effective as of January 1, 2024, the President and Chief Executive Officer receives gross monthly salary of NIS 51,591
($ 14) in consideration for his services as President and Chief Executive Officer of the Subsidiary. In addition, the President and Chief
Executive Officer is provided with a phone and a company car pursuant to the terms of his agreement.

 b.
 Balances with related parties:

 2023

 2022

 Accounts payable and accrued expenses - Shnida

 $

 $
 -

 Accounts payable and accrued expenses - KNRY

 $

 $

 c.
 Expenses to related parties:

 2023

 2022

 KNRY

 $

 $

 Shnida

 Nadav Kidron (President and Chief Executive Officer)

 $

 $

 F- 33

 NOTE 14 - SUBSEQUENT EVENTS:

 1.
 On January 4, 2024, the Company granted an aggregate of 150,000 RSUs representing a right to receive shares of the Company's common stock to the Company's board members. The RSUs granted to the board members will vest in three equal annual installments on each of January 1, 2025, 2026 and 2027. The total fair value of these RSUs on the date of grant was $ 359, using the quoted closing market share price of $ 2.39 on the Nasdaq Capital Market on the date of grant.

 2.
 On January 4, 2024, the Company granted an aggregate of 37,610 RSUs representing a right to receive shares of the Company's common stock to the Company's board members. The RSUs granted to certain board members will vest in four quarterly installments on each of April 1, 2024, July 1, 2024, October 1, 2024 and January 1, 2025. The total fair value of these RSUs on the date of grant was $ 90, using the quoted closing market share price of $ 2.39 on the Nasdaq Capital Market on the date of grant.

 3.
 On January 4, 2024, the Company granted an aggregate of 950,500 RSUs representing a right to receive shares of the Company's common stock to the Company's executive officers and one employee. The RSUs granted to executive officers and one employee will vest in twelve equal quarterly installments starting January 8, 2024. The total fair value of these RSUs on the date of grant was $ 2,272, using the quoted closing market share price of $ 2.39 on the Nasdaq Capital Market on the date of grant.

 4.
 On January 4, 2024, the Company granted an aggregate of 294,000 PSUs representing a right to receive shares of the Company's common stock to executive officers of the Company. The PSUs shall vest upon the Company's common stock achieving and maintaining a specified price per share. The total fair value of these PSUs on the date of grant was $ 691, using the Monte-Carlo model.

 5.
 On January 22, 2024, the Company and its wholly-owned subsidiary, Oramed Ltd., entered into the JV Agreement, with HTIT Biotech and HTIT Sub, pursuant to which, subject to the terms and conditions set forth in the JV Agreement, the parties will establish a JV, based on the Company's oral drug delivery technology.

 The JV will focus on the development and worldwide commercialization of innovative products based on the Company's oral insulin and POD (Protein Oral Delivery) pipeline and HTIT's manufacturing capabilities and technologies. The parties intend for the JV to use the protocol the Company is currently working on to initiate a Phase 3 oral insulin trial in the United States.

 The Company and HTIT will initially hold equal shares in the JV, with each owning 50 % of the equity. The Board of Directors will initially consist of equal representation from HTIT and the Company. HTIT will contribute to the JV $ 70,000 in cash, while the Company will contribute $ 20,000 (comprised of $ 10,000 in cash and $ 10,000 in shares of the Company's common stock that will be subject to certain registration rights) and will transfer intellectual property related to its oral insulin and POD technology, as well as other assets in the Company's pipeline. HTIT will have an option to invest additional funds into the JV up to an aggregate amount of $ 20,000, thereby increasing its equity holdings and board representation. The Company will be entitled to receive a 3 % royalty on gross revenues of the JV generated from Company-related assets.

 The consummation of the JV Agreement is subject to and contingent upon the parties entering into additional agreements within a three-month period, including an asset transfer agreement for the transfer of the Company's intellectual property to the JV, a commercial supply agreement for the manufacture and supply of products by HTIT to the JV, as well as other documents and agreements to regulate the relationship of the parties and the JV to be formed pursuant to the JV Agreement. There is no assurance that the parties will complete and sign these additional agreements within the agreed timeline or at all. If such agreements are not signed within the agreed timeframe, then either party may apply a 30-day extension, after which the JV Agreement may be terminated and voided by either party. Thereafter, the consummation of the JV transaction is further subject to the satisfaction or waiver of certain other closing conditions within a three-month period following the completion of the aforesaid ancillary agreements. If the closing conditions are not met within the agreed timeframe, then either party may apply a 30-day extension, after which the JV Agreement may be terminated and voided by either party. In addition, completion of the transactions contemplated under the JV Agreement is subject to the satisfaction or waiver of customary and certain other closing conditions.

 6.
 On January 30, 2024, the Company granted an aggregate of 3,750 RSUs representing a right to receive shares of the Company's common stock to one of the Company's board members. The RSUs granted to the board member will vest in four quarterly installments on each of April 1, 2024, July 1, 2024, October 1, 2024 and January 1, 2025. The total fair value of these RSUs on the date of grant was $ 11, using the quoted closing market share price of $ 2.98 on the Nasdaq Capital Market on the date of grant.

 F- 34

 (b)

 Exhibits

 3.1

 Composite Copy of Certificate of Incorporation, as amended as of January 22, 2013, corrected February 8, 2013, as amended as of July 25, 2014, corrected September 5, 2017 and as further amended as of August 3, 2020 (incorporated by reference from our annual report on Form 10-K filed November 24, 2020)

 3.3

 Fourth Amended and Restated By-laws (incorporated by reference from our current report on Form 8-K filed February 27, 2023).

 4.1

 Specimen Common Stock Certificate (incorporated by reference from our registration statement on Form S-1 filed February 1, 2013).

 4.2

 Description of Securities (incorporated by reference from our annual report on Form 10-K filed March 6, 2023).

 10.1+

 Consulting Agreement by and between Oramed Pharmaceuticals Inc. and Shnida Ltd., entered into as of November 1, 2022, for the services of Nadav Kidron (incorporated by reference from our annual report on Form 10-K filed March 6, 2023).

 10.2+*

 Amendment, dated April 27, 2023, to Consulting Agreement by and between Oramed Pharmaceuticals Inc. and Shnida Ltd., entered into as of November 1, 2022, for the services of Nadav Kidron.

 10.3+*

 Amendment, dated January 8, 2024, to Consulting Agreement by and between Oramed Pharmaceuticals Inc. and Shnida Ltd., entered into as of November 1, 2022, for the services of Nadav Kidron.

 10.4+

 Employment Agreement by and between Oramed Ltd. and Nadav Kidron, entered into as of November 1, 2022 (incorporated by reference from our annual report on Form 10-K filed March 6, 2023).

 10.5+*

 Amendment, dated April 27, 2023, to Employment Agreement by and between Oramed Ltd. and Nadav Kidron, entered into as of November 1, 2022.

 10.6+*

 Amendment, dated January 8, 2024, to Employment Agreement by and between Oramed Ltd. and Nadav Kidron, entered into as of November 1, 2022.

 10.7+

 Consulting Agreement by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008, for the services of Miriam Kidron (incorporated by reference from our current report on Form 8-K filed July 2, 2008).

 10.8+

 Amendment, dated November 13, 2014, to Consulting Agreement by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008, for the services of Miriam Kidron (incorporated by reference from our annual report on Form 10-K filed November 14, 2014).

 10.9+

 Amendment, dated July 13, 2013, to Consulting Agreement by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008 for the services of Miriam Kidron (incorporated by reference from our annual report on Form 10-K filed November 14, 2014).

 10.10+

 Amendment, dated July 21, 2015, to Consulting Agreements by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008, for the services of Miriam Kidron (incorporated by reference from our annual report on Form 10-K filed November 25, 2015).

 10.11+

 Amendment, dated June 27, 2016, to Consulting Agreements by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008, for the services of Miriam Kidron (incorporated by reference from our annual report on Form 10-K filed November 25, 2016).

 10.12+

 Amendment, dated June 30, 2017, to Consulting Agreements by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008, for the services of Miriam Kidron (incorporated by reference from our annual report on Form 10-K filed November 29, 2017).

 10.13+

 Amendment, dated January 10, 2020, to Consulting Agreements by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008, for the services of Miriam Kidron (incorporated by reference from our quarterly report on Form 10-Q filed April 6, 2020).

 10.14+

 Amendment, dated September 19, 2021, to Consulting Agreements by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008, for the services of Miriam Kidron (incorporated by reference from our annual report on Form 10-K filed November 24, 2021).

 10.15+*

 Amendment, dated April 27, 2023, to Consulting Agreements by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008, for the services of Miriam Kidron.

 10.16+*

 Amendment, dated January 8, 2024, to Consulting Agreements by and between Oramed Ltd. and KNRY, Ltd., entered into as of July 1, 2008, for the services of Miriam Kidron.

 10.17+

 Employment Agreement, dated May 23, 2021, by and between Oramed Ltd. and David Silberman (incorporated by reference from our quarterly report on Form 10-Q filed July 14, 2021).

 10.18+

 First Amendment, dated September 19, 2021, to Employment Agreement, by and between Oramed Ltd. and David Silberman (incorporated by reference from our annual report on Form 10-K filed November 24, 2021).

 10.19+

 Second Amendment, dated October 25, 2022, to Employment Agreement, by and between Oramed Ltd. and David Silberman (incorporated by reference from our annual report on Form 10-K filed March 6, 2023).

 10.20+*

 Third Amendment, dated April 27, 2023, to Employment Agreement, by and between Oramed Ltd. and David Silberman.

 10.21+*

 Fourth Amendment, dated January 8, 2024, to Employment Agreement, by and between Oramed Ltd. and David Silberman.

 10.22+*

 Representative Form of Indemnification Agreements between Oramed Pharmaceuticals Inc. and each of our directors and officers.

 10.23+

 Oramed Pharmaceuticals Inc. Second Amended and Restated 2008 Stock Incentive Plan (incorporated by reference from our definitive proxy statement on Schedule 14A filed August 4, 2016).

 10.24+

 Form of Restricted Stock Unit Notice and Restricted Stock Unit Agreement (incorporated by reference from our annual report on Form 10-K filed November 14, 2014).

 10.25+

 Form of Restricted Stock Unit Notice and Restricted Stock Unit Agreement between the Company and the Chief Scientific Officer or Chief Exectuvie Officer (incorporated by reference from our annual report on Form 10-K filed November 29, 2017).

 10.26+

 Form of Notice of Stock Option Award and Stock Option Award Agreement (incorporated by reference from our current report on Form 8-K filed July 2, 2008).

 10.27+

 Oramed Pharmaceuticals Inc. 2019 Stock Incentive Plan (incorporated by reference from our definitive proxy statement on Schedule 14A filed August 6, 2019).

 10.28+

 Oramed Pharmaceuticals Inc. Amended and Restated 2019 Stock Incentive Plan (incorporated by reference from our definitive proxy statement on Schedule 14A filed June 30, 2020).

 10.29+

 Amendment to Oramed Pharmaceuticals Inc. Amended and Restated 2019 Stock Incentive Plan (incorporated by reference from our definitive proxy statement on Schedule 14A filed June 2, 2022).

 10.30+

 Form of Notice of Stock Option Award and Stock Option Award Agreement (incorporated by reference from our annual report on Form 10-K filed November 27, 2019).

 10.31+

 Form of Restricted Stock Unit Notice and Restricted Stock Unit Agreement (incorporated by reference from our annual report on Form 10-K filed March 6, 2023).

 10.32

 Patent Transfer Agreement, dated February 22, 2011, between Oramed Ltd. and Entera Bio Ltd. (incorporated by reference from our registration statement on Form S-1 filed March 25, 2011).

 10.33

 Amended and Restated Technology License Agreement, dated December 21, 2015, between Hefei Tianhui Incubator of Technologies Co., Ltd., Oramed Pharmaceuticals, Inc. and Oramed Ltd. (Confidential treatment has been granted for portions of this document) (incorporated by reference from our quarterly report on Form 10-Q filed January 13, 2016).

 10.34

 Amendment to the Amended and Restated Technology License Agreement, dated June 3, 2016, between Hefei Tianhui Incubator of Technologies Co., Ltd., Oramed Pharmaceuticals, Inc. and Oramed Ltd. (Confidential treatment has been requested for portions of this document. The confidential portions will be omitted and filed separately, on a confidential basis, with the Securities and Exchange Commission) (incorporated by reference from our annual report on Form 10-K filed November 25, 2016).

 10.35

 Amendment to the Amended and Restated Technology License Agreement, dated July 24, 2016, between Hefei Tianhui Incubator of Technologies Co., Ltd., Oramed Pharmaceuticals, Inc. and Oramed Ltd. (Confidential treatment has been requested for portions of this document. The confidential portions will be omitted and filed separately, on a confidential basis, with the Securities and Exchange Commission) (incorporated by reference from our annual report on Form 10-K filed November 25, 2016).

 10.36

 Joint Venture Agreement, dated January 22, 2024, among Oramed Pharmaceuticals Inc., Oramed Ltd., Hefei Tianhui Biotech Co., Ltd. and Technowl Limited (incorporated by reference from our current report on Form 8-K filed January 23, 2024).

 10.37

 Equity Distribution Agreement, dated September 1, 2021, by and between the Company and Cantor Fitzgerald & Co. (incorporated by reference from our current report on Form 8-K filed September 1, 2021).

 10.38

 License Agreement, dated as of March 18, 2021, between the Company, Oramed Ltd. and Oravax Medical Inc. (incorporated by reference from our current report on Form 8-K filed March 19, 2021).

 10.39

 Stockholders Agreement, dated as of March 18, 2021, between Oramed Pharmaceuticals Inc., Akers Biosciences Inc., Premas Biotech PVT Ltd., Cutter Mill Capital LLC, and Run Ridge LLC. (incorporated by reference from our Form 8-K filed March 19, 2021).

 10.40§

 Securities Purchase Agreement, dated September 21, 2023 by and between Scilex Holding Company and Oramed Pharmaceuticals Inc. (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.41

 Senior Secured Promissory Note, dated September 21, 2023 issued to Oramed Pharmaceuticals Inc. by Scilex Holding Company (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.42

 Warrant No. ORMP CS-1 to Purchase Common Stock of Scilex Holding Company (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.43

 Warrant No. ORMP CS-2 to Purchase Common Stock of Scilex Holding Company (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.44

 Warrant No. ORMP CS-3 to Purchase Common Stock of Scilex Holding Company (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.45

 Warrant No. ORMP CS-4 to Purchase Common Stock of Scilex Holding Company (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.46

 Warrant No. ORMP CS-5 to Purchase Common Stock of Scilex Holding Company (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.47

 Scilex Holding Company Specimen Warrant Certificate (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.48

 Registration Rights Agreement, dated September 21, 2023, by and between Oramed Pharmaceuticals Inc. and Scilex Holding Company (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.49§

 Subsidiary Guarantee, dated September 21, 2023, by and among Oramed Pharmaceuticals, Acquiom Agency Services LLC, Scilex Holding Company, and certain subsidiaries of Scilex Holding Company party thereto (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.50

 Security Agreement, dated September 21, 2023, by and among Oramed Pharmaceuticals, Acquiom Agency Services LLC, Scilex Holding Company, and certain subsidiaries of Scilex Holding Company party thereto (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.51

 Mutual Termination and Release Agreement, dated September 21, 2023, by and between Sorrento Therapeutics, Inc. and Oramed Pharmaceuticals, Inc. (incorporated by reference from our current report on Form 8-K filed September 26, 2023).

 10.52+

 Oravax Medical, Inc. 2021 Long-Term Incentive Plan (incorporated by reference from our annual report on Form 10-K filed March 6, 2023).

 10.53+

 Oravax Stock Option Agreement (incorporated by reference from our annual report on Form 10-K filed March 6, 2023).

 21.1

 Subsidiaries (incorporated by reference from our annual report on Form 10-K filed November 24, 2021).

 23.1*

 Consent of Kesselman & Kesselman, Independent Registered Public Accounting Firm.

 31.1*

 Certification Statement of the Chief Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.

 31.2*

 Certification Statement of the Chief Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.

 32.1**

 Certification Statement of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350.

 32.2**

 Certification Statement of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350.

 97.1*

 Oramed Pharmaceuticals Inc. Clawback Policy, adopted November 9, 2023

 101.1*

 The following financial statements from the Company's annual report on Form 10-K for the year
 Statements of Loss, (iii) Consolidated Statements of Changes in Stockholders' Equity, (iv) Consolidated Statements of Cash
 Flows and (v) the Notes to Consolidated Financial Statements, tagged as blocks of text and in detail.

 104.1*

 *

 Filed herewith.

 **

 Furnished herewith.

 +

 Management contract or compensation plan.

 §

 Certain exhibits and similar attachments to this agreement have been omitted in accordance with Item 601(a)(5) of Regulation S-K. A copy of any omitted exhibit or other attachment will be furnished supplementary to the SEC upon request.

 ITEM 16. FORM 10-K SUMMARY.

 None.

 SIGNATURES

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

 /s/ Nadav Kidron

 Nadav Kidron,

 President and Chief Executive Officer

 Date: March 6, 2024

 Pursuant to the requirements
of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.

 /s/ Nadav Kidron

 Nadav Kidron,

 President and Chief Executive Officer and Director

 (principal executive officer)

 /s/ David Silberman

 David Silberman,

 Chief Financial Officer

 (principal financial and accounting officer)

 /s/ Daniel Aghion

 Daniel Aghion,

 /s/ Miriam Kidron

 Miriam Kidron,

 /s/ Arie Mayer

 Arie Mayer,

 /s/ Leonard Sank

 Leonard Sank,

 /s/ Benjamin Shapiro

 Benjamin Shapiro,

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