Full Press Release Details
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2017
| Page | |
| Report of Independent Registered Public Accounting Firm | F-2 |
| Consolidated Statements of Financial Position | F-3 F-4 |
| Consolidated Statements of Comprehensive Loss | F-5 |
| Consolidated Statements of Changes in Equity | F-6 F-8 |
| Consolidated Statements of Cash Flows | F-9 F-10 |
| Notes to Consolidated Financial Statements | F-11 F-42 |
- - - - - - - - - - -
REPORT OF INDEPENDENT REGISTERED PUBLIC
To the Shareholders and Board of Directors
of CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES.
the Financial Statements
accompanying consolidated financial position of Can-Fite and its subsidiaries Ltd (the "Company") as of December 31,
2017 and 2016, and the related consolidated statements of other comprehensive loss, shareholders' equity and cash flows for each
of the three years in the period ended December 31, 2017, and the related notes (collectively referred to as the "consolidated
financial statements"). In our opinion, the consolidation financial statements present fairly, in all material respects, the
consolidated financial position of the Company at December 31, 2017 and 2016, and the results of its operations and its cash flows
for each of the three years in the period ended December 31, 2017, in conformity with International Financial Reporting Standards
as issued by the International Accounting Standards Board.
These financial statements
are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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.
audits 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 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
performing procedures to assess the risks of material misstatement of the 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 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 financial statements. We believe
that our audits provide a reasonable basis for our opinion.
We have served as the Company's auditor
since at least 2001, but we are unable to determine the specific year.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
STATEMENTS OF FINANCIAL POSITION
In thousands (except for share and per
| December 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Note | USD | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 3,505 | $ | 8,115 | ||||||
| Other accounts receivables and prepaid expenses | 5 | 3,159 | 2,007 | |||||||
| Total current assets | 6,664 | 10,122 | ||||||||
| NON-CURRENT ASSETS: | ||||||||||
| Lease deposit | 5 | 10 | ||||||||
| long-term investment | 6 | 917 | - | |||||||
| Property, plant and equipment, net | 7 | 28 | 40 | |||||||
| Total long-term assets | 950 | 50 | ||||||||
| Total assets | $ | 7,614 | $ | 10,172 |
The accompanying notes are an integral
part of the consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
STATEMENTS OF FINANCIAL POSITION
In thousands (except for share and per
| December 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Note | USD | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Trade payables | $ | 427 | $ | 1,249 | ||||||
| Deferred revenues | 10 | 330 | 322 | |||||||
| Other accounts payable | 8 | 997 | 933 | |||||||
| Warrants exercisable into shares (Series 10-12) | - | 564 | ||||||||
| Total current liabilities | 1,754 | 3,068 | ||||||||
| NON-CURRENT LIABILITIES: | ||||||||||
| Deferred revenues | 10 | 846 | 1,143 | |||||||
| Total Long-term liabilities | 846 | 1,143 | ||||||||
| CONTIGENT LIABILITIES AND COMMITMENTS | 10 | |||||||||
| EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | 11 | |||||||||
| Share capital | 2,123 | 1,783 | ||||||||
| Share premium | 81,104 | 79,864 | ||||||||
| Capital reserve from share-based payment transactions | 5,547 | 5,167 | ||||||||
| Warrants exercisable into shares | 8,815 | 6,947 | ||||||||
| Treasury shares, at cost | - | (970 | ) | |||||||
| Accumulated other comprehensive income | 1,127 | 491 | ||||||||
| Accumulated deficit | (93,702 | ) | (87,363 | ) | ||||||
| Total equity attributable to equity holders of the company | 5,014 | 5,919 | ||||||||
| Non-controlling interests | - | 42 | ||||||||
| Total equity | 5,014 | 5,961 | ||||||||
| Total liabilities and equity | $ | 7,614 | $ | 10,172 |
The accompanying notes are an integral
part of the consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
STATEMENTS OF COMPREHENSIVE LOSS
In thousands (except for share and per
| Year ended December 31, | ||||||||||||||
| 2017 | 2016 | 2015 | ||||||||||||
| Note | USD | |||||||||||||
| Revenues | 10 | $ | 789 | $ | 165 | $ | 162 | |||||||
| Research and development expenses | 13 | 5,106 | 6,115 | 3,904 | ||||||||||
| General and administrative expenses | 14 | 2,868 | 2,733 | 2,735 | ||||||||||
| Operating loss | 7,185 | 8,683 | 6,477 | |||||||||||
| Other income | 1b | (769 | ) | - | - | |||||||||
| Financial expenses | 15 | 621 | 55 | 133 | ||||||||||
| Financial income | 15 | (633 | ) | (374 | ) | (106 | ) | |||||||
| Total Financial income, net | (12 | ) | (319 | ) | 27 | |||||||||
| Loss before taxes on income | 6,404 | 8,364 | 6,504 | |||||||||||
| Taxes on income | 17 | 29 | 29 | 5 | ||||||||||
| Net loss | 6,433 | 8,393 | 6,509 | |||||||||||
| Other comprehensive loss: | ||||||||||||||
| Amounts that will not be reclassified subsequently to profit or loss: | ||||||||||||||
| Adjustment arising from translating financial statements from functional currency to presentation currency | (636 | ) | (119 | ) | 58 | |||||||||
| Remeasurement loss from defined benefit plans | - | - | 99 | |||||||||||
| Total other comprehensive | (636 | ) | (119 | ) | 157 | |||||||||
| Total comprehensive loss | $ | 5,797 | $ | 8,274 | $ | 6,666 | ||||||||
| Net loss Attributable to: | ||||||||||||||
| Equity holders of the Company | $ | 6,339 | $ | 8,257 | $ | 6,243 | ||||||||
| Non-controlling interests | 94 | 136 | 266 | |||||||||||
| 6,433 | 8,393 | 6,509 | ||||||||||||
| Total comprehensive loss attributable to: | ||||||||||||||
| Equity holders of the Company | 5,703 | 8,138 | 6,400 | |||||||||||
| Non-controlling interests | 94 | 136 | 266 | |||||||||||
| $ | 5,797 | $ | 8,274 | $ | 6,666 | |||||||||
| Net loss per share attributable to equity holders of the Company: | ||||||||||||||
| Basic and diluted net loss per share | 16 | $ | 0.19 | $ | 0.30 | $ | 0.27 |
The accompanying notes are an integral
part of the consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
STATEMENTS OF CHANGES IN EQUITY
In thousands (except for share and per
| Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||||||
| Share capital | Share premium | Capital reserve from share-based payment transactions | Warrants exercisable into shares | Treasury shares | Accumulated other comprehensive income (loss) | Accumulated deficit | Total | Non- controlling interests | Total Equity | |||||||||||||||||||||||||||||||
| USD | ||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2015 | $ | 1,373 | $ | 72,534 | $ | 4,317 | $ | 2,633 | $ | (970 | ) | $ | 389 | $ | (72,723 | ) | $ | 7,553 | $ | 419 | $ | 7,972 | ||||||||||||||||||
| Net loss | - | - | - | - | - | - | (6,243 | ) | (6,243 | ) | (266 | ) | (6,509 | ) | ||||||||||||||||||||||||||
| Remeasurement gain (loss) from defined benefit plans | - | - | - | - | - | (99 | ) | - | (99 | ) | - | (99 | ) | |||||||||||||||||||||||||||
| Adjustment arising from translating financial statements from functional currency to presentation currency | - | - | - | - | - | (58 | ) | - | (58 | ) | - | (58 | ) | |||||||||||||||||||||||||||
| Total comprehensive loss | - | - | - | - | - | (157 | ) | (6,243 | ) | (6,400 | ) | (266 | ) | (6,666 | ) | |||||||||||||||||||||||||
| Issuance of share capital and warrants, net of issue expenses of USD 1,314 | 407 | 7,330 | 460 | 4,314 | - | - | - | 12,511 | - | 12,511 | ||||||||||||||||||||||||||||||
| Share-based payments | - | - | 87 | - | - | - | - | 87 | 22 | 109 | ||||||||||||||||||||||||||||||
| Balance as of December 31, 2015 | $ | 1,780 | $ | 79,864 | $ | 4,864 | $ | 6,947 | $ | (970 | ) | $ | 232 | $ | (78,966 | ) | $ | 13,751 | $ | 175 | $ | 13,926 |
The accompanying notes are an integral
part of the consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
STATEMENTS OF CHANGES IN EQUITY
In thousands (except for share and per
| Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||||||
| Share capital | Share premium | Capital reserve from share-based payment transactions | Warrants exercisable into shares | Treasury shares | Accumulated other comprehensive income (loss) | Accumulated deficit | Total | Non- controlling interests | Total Equity | |||||||||||||||||||||||||||||||
| USD | ||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2016 | $ | 1,780 | $ | 79,864 | $ | 4,864 | $ | 6,947 | $ | (970 | ) | $ | 232 | $ | (78,966 | ) | $ | 13,751 | $ | 175 | $ | 13,926 | ||||||||||||||||||
| Net loss | - | - | - | - | - | - | (8,257 | ) | (8,257 | ) | (136 | ) | (8,393 | ) | ||||||||||||||||||||||||||
| Loss from defined benefit plans | - | - | - | - | - | 140 | (140 | ) | - | - | - | |||||||||||||||||||||||||||||
| Adjustment arising from translating financial statements from functional currency to presentation currency | - | - | - | - | - | 119 | - | 119 | - | 119 | ||||||||||||||||||||||||||||||
| Total comprehensive loss | - | - | - | - | - | 259 | (8,397 | ) | (8,138 | ) | (136 | ) | (8,274 | ) | ||||||||||||||||||||||||||
| Share-based payments | 3 | - | 303 | - | - | - | - | 306 | 3 | 309 | ||||||||||||||||||||||||||||||
| Balance as of December 31, 2016 | $ | 1,783 | $ | 79,864 | $ | 5,167 | $ | 6,947 | $ | (970 | ) | $ | 491 | $ | (87,363 | ) | $ | 5,919 | $ | 42 | $ | 5,961 |
The accompanying notes are an integral
part of the consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
STATEMENTS OF CHANGES IN EQUITY
In thousands (except for share and per
| Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||||||
| Share capital | Share premium | Capital reserve from share-based payment transactions | Warrants exercisable into shares | Treasury shares | Accumulated other comprehensive income | Accumulated deficit | Total | Non- controlling interests | Total Equity | |||||||||||||||||||||||||||||||
| USD | ||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2017 | $ | 1,783 | $ | 79,864 | $ | 5,167 | $ | 6,947 | $ | (970 | ) | $ | 491 | $ | (87,363 | ) | $ | 5,919 | $ | 42 | $ | 5,961 | ||||||||||||||||||
| Net loss | - | - | - | - | - | - | (6,339 | ) | (6,339 | ) | (94 | ) | (6,433 | ) | ||||||||||||||||||||||||||
| Adjustment arising from translating financial statements from functional currency to presentation currency | - | - | - | - | - | 636 | - | 636 | - | 636 | ||||||||||||||||||||||||||||||
| Total comprehensive loss | - | - | - | - | - | 636 | (6,339 | ) | (5,703 | ) | (94 | ) | (5,797 | ) | ||||||||||||||||||||||||||
| Issuance of share capital and warrants, net of issue expenses of USD 621 | 330 | 1,993 | 188 | 1,868 | - | - | 4,379 | - | 4,379 | |||||||||||||||||||||||||||||||
| Issuance of share capital | 10 | 85 | - | - | - | - | 95 | - | 95 | |||||||||||||||||||||||||||||||
| Proceeds from sale of subsidiary in previously consolidated subsidiaries | - | (838 | ) | - | - | 970 | - | 132 | 52 | 184 | ||||||||||||||||||||||||||||||
| Share-based payments | - | - | 192 | - | - | - | - | 192 | - | 192 | ||||||||||||||||||||||||||||||
| Balance as of December 31, 2017 | $ | 2,123 | $ | 81,104 | $ | 5,547 | $ | 8,815 | $ | - | $ | 1,127 | $ | (93,702 | ) | $ | 5,014 | $ | - | $ | 5,014 |
The accompanying notes are an integral
part of the consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS
In thousands (except for share and per
| Year ended December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| USD | ||||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (6,433 | ) | $ | (8,393 | ) | $ | (6,509 | ) | |||
| Adjustments to reconcile loss to net cash used: | ||||||||||||
| Depreciation of property, plant and equipment | 19 | 18 | 16 | |||||||||
| Share-based payment | 192 | 309 | 109 | |||||||||
| Decrease in severance pay, net | - | (152 | ) | 5 | ||||||||
| Changes in fair value of warrants liability exercisable into shares | (72 | ) | (232 | ) | 80 | |||||||
| Changes in fair value of long-term investment | 5 | - | - | |||||||||
| Gain from sale of investment in previously consolidated subsidiaries (a) | (769 | ) | - | - | ||||||||
| Exchange differences on balances of cash and cash equivalents | 83 | 82 | 13 | |||||||||
| (542 | ) | 25 | 223 | |||||||||
| Working capital adjustments: | ||||||||||||
| Decrease (increase) in accounts receivable, prepaid expenses and lease deposit | (2,907 | ) | (1,397 | ) | 332 | |||||||
| Increase (decrease) in trade payable | (293 | ) | 816 | 187 | ||||||||
| Increase (decrease) in deferred revenues | (289 | ) | 335 | 1,130 | ||||||||
| Increase (decrease) in other accounts payable | 906 | (100 | ) | (178 | ) | |||||||
| (1,997 | ) | (346 | ) | 1,471 | ||||||||
| Net cash used in operating activities | $ | (8,972 | ) | $ | (8,714 | ) | $ | (4,815 | ) |
The accompanying notes are an integral
part of the consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS
In thousands (except for share and per
| Year ended December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| USD | ||||||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchase of property, plant and equipment | $ | (7 | ) | $ | (10 | ) | $ | (42 | ) | |||
| Proceeds from sale of investments in previously consolidated subsidiaries (a) | (22 | ) | - | - | ||||||||
| Net cash used in investing activities | (29 | ) | (10 | ) | (42 | ) | ||||||
| Cash flows from financing activities: | ||||||||||||
| Issuance of share capital and warrants, net of issuance expenses | 4,474 | - | 12,511 | |||||||||
| Net cash provided by financing activities | 4,474 | - | 12,511 | |||||||||
| Exchange differences on balances of cash and cash equivalents | (83 | ) | (82 | ) | (13 | ) | ||||||
| Increase (decrease) in cash and cash equivalents | (4,610 | ) | (8,806 | ) | 7,641 | |||||||
| Cash and cash equivalents at the beginning of the year | 8,115 | 16,921 | 9,280 | |||||||||
| Cash and cash equivalents at the end of the year | 3,505 | 8,115 | 16,921 | |||||||||
| Supplemental disclosure of cash flow information: | ||||||||||||
| Cash paid during the year for income taxes | 29 | 29 | 5 | |||||||||
| Cash received during the year for interest | $ | 69 | $ | 89 | $ | 22 |
| Year ended December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| USD | ||||||||||||
| (a) Proceeds from sale of investments in previously consolidated subsidiaries: | ||||||||||||
| The subsidiaries' assets and liabilities at date of sale: | ||||||||||||
| Working capital (excluding cash and cash equivalents) | $ | (53 | ) | $ | - | $ | - | |||||
| Treasury shares deduction, net | 132 | - | - | |||||||||
| Non-controlling interests | 52 | - | - | |||||||||
| Gain (loss) from sale of subsidiaries | 769 | - | - | |||||||||
| Long term investments | (922 | ) | - | - | ||||||||
| $ | (22 | ) | $ | - | $ | - |
The accompanying notes are an integral
part of the consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In thousands (except for share and per
Biopharma Ltd. (the "Company") was incorporated and started to operate in September 1994 as a private Israeli company.
Can-Fite is a clinical-stage biopharmaceutical company focused on developing orally bioavailable small molecule therapeutic products
for the treatment of autoimmune-inflammatory, oncological and sexual dysfunction indications. Its platform technology utilizes
the Gi protein associated A3AR as a therapeutic target. A3AR is highly expressed in inflammatory and cancer cells, and not significantly
expressed in normal cells, suggesting that the receptor could be a unique target for pharmacological intervention. The Company's
pipeline of drug candidates are synthetic, highly specific agonists and allosteric modulators, or ligands or molecules that initiate
molecular events when binding with target proteins, targeting the A3AR.
ordinary shares have been publicly traded on the Tel-Aviv Stock Exchange since October 2005 under the symbol "CFBI" and
the Company's American Depositary Shares ("ADSs") began public trading on the over the counter market in the U.S. in
October 2012 and since November 2013 the Company's ADSs have been publicly traded on the NYSE American
under the symbol "CANF".
On May 21, 2017, OphthaliX
and a wholly-owned private Israeli subsidiary of OphthaliX, Bufiduck Ltd. (the "Merger Sub"), and Wize Pharma Ltd.
("Wize"), an Israeli company formerly listed on the Tel Aviv Stock Exchange currently focused on the treatment of ophthalmic
disorders, including dry eye syndrome, entered into an Agreement and Plan of Merger, or the Merger Agreement, providing for the