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CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2014 UNAUDITED INDEX Page Interim Condensed Consolidated Statements of Financial Position 2 - 3 Interim Cond

Key Takeaway: CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED FINANCIAL Page Interim Condensed Consolidated Statements of Financial Position 2 - 3 Interim Condensed Consolidated Statements of Comprehensive Loss 4 Interim Condensed Consolidated Statements of Chang

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CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED FINANCIAL
Page
Interim Condensed Consolidated Statements of Financial Position 2 - 3
Interim Condensed Consolidated Statements of Comprehensive Loss 4
Interim Condensed Consolidated Statements of Changes in Equity 5 - 7
Interim Condensed Consolidated Statements of Cash Flows 8 - 9
Notes to Interim Condensed Consolidated Financial Statements 10 - 17
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION (UNAUDITED)
In thousands (except share and per
June 30, 2014 December 31, 2013
USD NIS NIS
Note 2(c)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 5,580 19,185 20,767
Accounts receivable 790 2,716 2,161
Total current assets 6,370 21,901 22,928
NON-CURRENT ASSETS:
Lease deposits 10 34 34
Property, plant and equipment, net 43 147 143
Total long-term assets 53 181 177
Total assets 6,423 22,082 23,105
The accompanying notes are an integral
part of the interim condensed consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS
INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
In thousands (except share and per
June 30, December 31,
2014 2013
USD NIS NIS
Note 2(c)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 549 1,887 2,056
Other accounts payable 739 2,540 5,276
Warrants exercisable into shares (series 7) - - 119
Total current liabilities 1,288 4,427 7,451
NON-CURRENT LIABILITIES:
Warrants exercisable into shares 456 1,569 -
Severance pay, net 36 125 129
Total long-term liabilities 492 1,694 129
COMMITMENTS AND CONTINGENT LIABILITIES (Note 3)
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY (Note 4):
Share capital 1,319 4,535 4,037
Share premium 81,354 279,694 267,946
Capital reserve from share-based payment transactions 4,729 16,257 15,761
Warrants exercisable into shares (series 9-12) 2,807 9,652 9,652
Treasury shares at cost (1,055 ) (3,628 ) (3,628 )
Accumulated other comprehensive loss (29 ) (99 ) (151 )
Accumulated deficit (85,051 ) (292,405 ) (280,391 )
Total equity attributable to equity holders of the Company 4,074 14,006 13,226
Non-controlling interests 569 1,955 2,299
Total shareholders' equity 4,643 15,961 15,525
Total liabilities and shareholders' equity 6,423 22,082 23,105
The accompanying notes are an integral part of the interim condensed consolidated financial
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE LOSS (UNAUDITED)
In thousands (except share and per
Six months ended June 30,
2014 2014 2013
USD NIS NIS
Note 2(c)
Research and development expenses 2,512 8,636 7,663
General and administrative expenses 1,578 5,425 6,591
Operating loss 4,090 14,061 14,254
Finance expenses 228 780 445
Finance income (723 ) (2,485 ) (412 )
Net loss 3,595 12,356 14,287
Other comprehensive income:
Exchange differences of foreign operations (19 ) (65 ) 291
Total comprehensive loss 3,576 12,291 14,578
Loss attributable to:
Equity holders of the Company 3,496 12,014 13,125
Non-controlling interests 99 342 1,162
3,595 12,356 14,287
Comprehensive loss attributable to:
Equity holders of the Company 3,480 11,962 13,364
Non-controlling interests 96 329 1,214
3,576 12,291 14,578
Net loss per share attributable to equity holders of the Company :
Basic and diluted net loss per share 0.21 0.71 1.11
The accompanying notes are an integral
part of the interim condensed consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY (UNAUDITED)
In thousands (except share and per
Share capital Share premium Capital reserve from share-based payment transactions Warrants exercisable into shares Treasury shares at cost Accumulated other comprehensive income (loss) Accumulated deficit Total Non-controlling interests Total equity
NIS
Balance as of January 1, 2013 2,734 233,754 15,279 669 (5,805 ) 67 (251,342 ) (4,644 ) 1,999 (2,645 )
Loss - - - - - - (29,049 ) (29,049 ) (1,763 ) (30,812 )
Foreign currency translation reserve - - - - - (169 ) - (169 ) (37 ) (206 )
Remesurments of defined benefit plan - - - - - (49 ) - (49 ) - (49 )
Total comprehensive loss - - - - - (218 ) (29,049 ) (29,267 ) (1,800 ) (31,067 )
Exercise of unlisted share options 87 - - - - - - 87 - 87
Exercise of warrants (Series 8, Series 10 and Series 11) 1 41 - - - - - 42 - 42
Issuance of share capital and warrants (Series 12) net of issue expenses of NIS 3,749 1,206 34,083 283 2,739 - - - 38,311 - 38,311
Reclassification of warrants (Series 10 and Series 11) - - - 6,244 - - - 6,244 - 6,244
Sale of treasury shares - (277 ) - - 2,177 - - 1,900 (61 ) 1,839
Share-based payments 9 345 199 - - - - 553 2,161 2,714
Balance as of December 31, 2013 4,037 267,946 15,761 9,652 (3,628 ) (151 ) (280,391 ) 13,226 2,299 15,525
notes are an integral part of the interim condensed consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
thousands (except share and per share data)
Share capital Share premium Capital reserve from share-based payment transactions Warrants exercisable into shares Treasury shares at cost Accumulated other comprehensive income (loss) Accumulated deficit Total Non-controlling interests Total equity
NIS
Balance as of December 31, 2013 4,037 267,946 15,761 9,652 (3,628 ) (151 ) (280,391 ) 13,226 2,299 15,525
Loss - - - - - - (12,014 ) (12,014 ) (342 ) (12,356 )
Foreign currency translation reserve - - - - - 52 - 52 13 65
Total comprehensive income (loss) - - - - - 52 (12,014 ) (11,962 ) (329 ) (12,291 )
Issuance of shares, net of issuance expenses of NIS 1,405 491 11,560 381 - - - - 12,432 - 12,432
Share-based payment 7 188 115 - - - - 310 (15 ) 295
Balance as of June 30, 2014 4,535 279,694 16,257 9,652 (3,628 ) (99 ) (292,405 ) 14,006 1,955 15,961
The accompanying notes are an integral
part of the interim consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY (UNAUDITED)
In thousands (except share and per
Share capital Share premium Capital reserve from share-based payment transactions Warrants exercisable into shares Treasury shares at cost Accumulated other comprehensive income (loss) Accumulated deficit Total Non-controlling interests Total equity
USD (Note 2(c))
Balance as of December 31, 2013 1,174 77,937 4,584 2,807 (1,055 ) (44 ) (81,556 ) 3,847 669 4,516
Loss - - - - - - (3,495 ) (3,495 ) (99 ) (3,594 )
Foreign currency translation reserve - - - - - 15 - 15 3 18
Total comprehensive income (loss) - - - - - 15 (3,495 ) (3,480 ) (96 ) (3,576 )
Issuance of shares, net of issuance expenses of $ 409 143 3,362 111 - - - - 3,616 - 3,616
Share-based payment 2 55 34 - - - - 91 (4 ) 87
Balance as of June 30, 2014 1,319 81,354 4,729 2,807 (1,055 ) (29 ) (85,051 ) 4,074 569 4,643
accompanying notes are an integral part of the interim condensed consolidated
financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (UNAUDITED)
In thousands (except share and per
Six months ended June 30,
2014 2014 2013
USD NIS NIS
Note 2(c)
Cash flows from operating activities:
Net loss (3,594 ) (12,356 ) (14,287 )
Adjustments to reconcile net loss to net cash used :
Depreciation of property, plant and equipment 7 22 27
Share-based payment 86 295 1,701
Issuance expenses related to warrants exercisable into shares 137 472 650
Interest on deposits (7 ) (25 ) (9 )
Gain from sale of property, plant and equipment - - (6 )
Decrease in severance pay, net (1 ) (4 ) (2 )
Decrease in fair value of warrants exercisable into shares (652 ) (2,243 ) -
Increase in fair value of warrants exercisable into shares (series 6-8,10-11) (35 ) (119 ) (453 )
Exchange differences on balances of cash and cash equivalents (38 ) (131 ) (227 )
(503 ) (1,733 ) 1,681
Working capital adjustments:
Decrease (increase) in accounts receivable and lease deposit (163 ) (559 ) 8
Decrease in trade payables (52 ) (180 ) (1,353 )
Decrease in other accounts payable (772 ) (2,656 ) (1,152 )
(987 ) (3,395 ) (2,497 )
Cash paid and received during the period for:
Interest received 7 25 9
Net cash used in operating activities (5,077 ) (17,459 ) (15,094 )
The accompanying notes are an integral
part of the interim condensed consolidated financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (UNAUDITED)
In thousands (except share and per
Six months ended June 30,
2014 2014 2013
USD NIS NIS
Note 2(c)
Cash flows from investing activities:
Purchase of property, plant and equipment (8 ) (26 ) (35 )
Proceeds from sale of property, plant and equipment - - 7
Purchase of assets measured by fair value - - (3,265 )
Net cash used in investing activities (8 ) (26 ) (3,293 )
Cash flows from financing activities:
Issuance of shares capital and warrants, net of issuance expenses 4,587 15,772 23,920
Exercise of unlisted share options *) - *) - 86
Sale of treasury shares - - 1,838
Net cash provided by financing activities 4,587 15,772 25,844
Exchange rate differences on balances of cash and cash equivalents 38 131 (64 )
Increase (decrease) in cash and cash equivalents (460 ) (1,582 ) 7,393
Cash and cash equivalents at the beginning of the period 6,040 20,767 4,278
Cash and cash equivalents at the end of the period 5,580 19,185 11,671
accompanying notes are an integral part of the interim condensed consolidated
financial statements.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
In thousands (except share and per
In these consolidated financial
The Company - Can-Fite Biopharma Ltd.
The Group - The Company and its subsidiaries (as defined below).
Subsidiaries - Companies that are controlled by the Company (as defined in IFRS 10) and whose accounts are consolidated with those of the Company.
OphthaliX - OphthaliX Inc. (owned 82% by the Company).
Related company - Eye-Fite Ltd. (OphthaliX Inc.'s wholly owned subsidiary).
Related parties - As defined in IAS 24.
NIS - New Israeli Shekel.
USD - U.S. dollar.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
In thousands (except share and per
consolidated financial statements have been prepared in accordance with IAS 34, "Interim Financial Reporting".
condensed consolidated financial statements do not include all the information and disclosures required in the annual financial
statements, and should be read in conjunction with the Company's annual consolidated financial statements for the year ended December
of the financial statements requires management to make critical accounting estimates as well as exercise judgment in the process
of adopting significant accounting policies. Actual results may differ from these estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis.
policies adopted in the preparation of these interim condensed consolidated financial statements are consistent with those followed
in the preparation of the Company's annual consolidated financial statements for the year ended December 31, 2013, except as noted
10, "Consolidated Financial Statements":
supersedes IAS 27 regarding the accounting treatment in respect of consolidated financial statements and includes the accounting
treatment for the consolidation of structured entities previously accounted for under SIC 12, "Consolidation - Special Purpose
of IFRS 10 for the first time did not have a material effect on the Company's financial statements.
(Revised), "Employee Benefits":
2011, the IASB issued IAS 19 (Revised) which is to be applied commencing January 1, 2013. The principal amendments address the
accounting treatment of defined benefit plans.
of IAS 19 for the first time did not have a material effect on the Company's financial statements.
For the convenience of the
reader, the reported NIS amounts as of June 30, 2014 have been translated into U.S. dollars at the representative rate of
exchange on June 30, 2014 (U.S. $1 = NIS 3.438). The U.S. dollar amounts presented in these financial statements should
not be construed as representing amounts that are receivable or payable in dollars or convertible into U.S. dollars, unless otherwise
indicated. The U.S. dollar amounts were rounded to whole numbers for convenience.
CAN-FITE BIOPHARMA LTD. AND ITS SUBSIDIARIES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
In thousands (except share and per
The agreement will remain
in effect until the expiration of the last patent, unless it is terminated sooner by one of the parties, according to the PHS Agreement.
On February 4, 2013, a second
revised agreement was signed for updating the milestone dates. These revised agreements have no effect on the original license
terms. In addition, CF101 and CF102 are defined in the agreements. As of June 30, 2014, the Company accrued amount of NIS 1,215
As of June 30, 2014, no accrual
has been recorded with respect to Leiden University.
LTD. AND ITS SUBSIDIARIES
TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
In thousands (except share and per
According to the agreement,
the Company is entitled to receive the following amounts:
Last updated: Sep 17, 2014