Full Press Release Details
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| 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 - 6 |
| Interim Condensed Consolidated Statements of Cash Flows | 7 - 8 |
| Notes to Interim Condensed Consolidated Financial Statements | 9 - 15 |
CAN-FITE BIOPHARMA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
thousands (except for share and per share data)
| Convenience translation into U.S. dollars | ||||||||||||
| June 30, | June 30, | December 31, | ||||||||||
| 2016 | 2016 | 2015 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD | NIS | |||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | 12,070 | 46,422 | 66,026 | |||||||||
| Other receivable and prepaid expenses | 1,717 | 6,604 | 2,419 | |||||||||
| Total current assets | 13,787 | 53,026 | 68,445 | |||||||||
| NON-CURRENT ASSETS: | ||||||||||||
| Lease deposits | 7 | 27 | 27 | |||||||||
| Property, plant and equipment, net | 62 | 237 | 236 | |||||||||
| Total long-term assets | 69 | 264 | 263 | |||||||||
| Total assets | 13,856 | 53,290 | 68,708 |
accompanying notes are an integral part of the interim condensed consolidated financial statements.
CAN-FITE BIOPHARMA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
thousands (except for share and per share data)
| Convenience translation into U.S. dollars | ||||||||||||
| June 30, | June 30, | December 31, | ||||||||||
| 2016 | 2016 | 2015 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD | NIS | |||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Trade payables | 635 | 2,442 | 1,803 | |||||||||
| Deferred revenues | 223 | 857 | 857 | |||||||||
| Other accounts payable | 742 | 2,855 | 4,279 | |||||||||
| Total current liabilities | 1,600 | 6,154 | 6,939 | |||||||||
| NON-CURRENT LIABILITIES: | ||||||||||||
| Warrants exercisable into shares | 3,419 | 13,151 | 16,725 | |||||||||
| Deferred revenues | 836 | 3,213 | 3,641 | |||||||||
| Severance pay, net | 167 | 643 | 630 | |||||||||
| Total long-term liabilities | 4,422 | 17,007 | 20,996 | |||||||||
| CONTINGENT LIABILITIES AND COMMITMENTS | ||||||||||||
| EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | ||||||||||||
| Share capital | 1,830 | 7,039 | 7,030 | |||||||||
| Share premium | 86,550 | 332,873 | 332,873 | |||||||||
| Capital reserve from share-based payment transactions | 5,194 | 19,976 | 19,288 | |||||||||
| Warrants exercisable into shares (series 10-12) | 2,336 | 8,983 | 8,983 | |||||||||
| Treasury shares, at cost | (943 | ) | (3,628 | ) | (3,628 | ) | ||||||
| Accumulated other comprehensive loss | (365 | ) | (1,403 | ) | (1,401 | ) | ||||||
| Accumulated deficit | (86,859 | ) | (334,062 | ) | (322,876 | ) | ||||||
| Total equity attributable to equity holders of the Company | 7,743 | 29,778 | 40,269 | |||||||||
| Non-controlling interests | 91 | 351 | 504 | |||||||||
| Total equity | 7,834 | 30,129 | 40,773 | |||||||||
| Total liabilities and equity | 13,856 | 53,290 | 68,708 |
accompanying notes are an integral part of the interim condensed consolidated financial statements.
CAN-FITE BIOPHARMA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
thousands (except for share and per share data)
| Convenience translation into U.S. dollars | ||||||||||||
| Six months ended June 30, | ||||||||||||
| 2016 | 2016 | 2015 | ||||||||||
| Unaudited | ||||||||||||
| USD | NIS | NIS | ||||||||||
| Revenues | 111 | 428 | 271 | |||||||||
| Research and development expenses | 2,592 | 9,968 | 5,751 | |||||||||
| General and administrative expenses | 1,299 | 4,996 | 4,670 | |||||||||
| Operating loss | 3,780 | 14,536 | 10,150 | |||||||||
| Finance expenses | 149 | 575 | 1,005 | |||||||||
| Finance income | (978 | ) | (3,761 | ) | (2,886 | ) | ||||||
| Net loss | 2,951 | 11,350 | 8,269 | |||||||||
| Other comprehensive loss (income): | ||||||||||||
| Adjustments arising from translating financial statements of foreign operations | 1 | 3 | (370 | ) | ||||||||
| Total comprehensive loss | 2,952 | 11,353 | 7,899 | |||||||||
| Net loss attributable to: | ||||||||||||
| Equity holders of the Company | 2,908 | 11,186 | 7,898 | |||||||||
| Non-controlling interests | 43 | 164 | 371 | |||||||||
| 2,951 | 11,350 | 8,269 | ||||||||||
| Total comprehensive loss attributable to: | ||||||||||||
| Equity holders of the Company | 2,909 | 11,188 | 7,594 | |||||||||
| Non-controlling interests | 43 | 165 | 305 | |||||||||
| 2,952 | 11,353 | 7,899 | ||||||||||
| Net loss per share attributable to equity holders of the Company : | ||||||||||||
| Basic and diluted net loss per share | 0.10 | 0.40 | 0.37 | |||||||||
| Basic and diluted net loss per share | 0.10 | 0.40 | 0.37 |
accompanying notes are an integral part of the interim condensed consolidated financial statements.
CAN-FITE BIOPHARMA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
in thousands (except for share and per share data)
| 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 | |||||||||||||||||||||||||||||||
| NIS | ||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2016 | 7,030 | 332,873 | 19,288 | 8,983 | (3,628 | ) | (1,401 | ) | (322,876 | ) | 40,269 | 504 | 40,773 | |||||||||||||||||||||||||||
| Loss | - | - | - | - | - | - | (11,186 | ) | (11,186 | ) | (164 | ) | (11,350 | ) | ||||||||||||||||||||||||||
| Adjustments arising from translating financial statements of foreign operations | - | - | - | - | - | (2 | ) | - | (2 | ) | (1 | ) | (3 | ) | ||||||||||||||||||||||||||
| Total comprehensive income (loss) | - | - | - | - | - | (2 | ) | (11,186 | ) | (11,188 | ) | (165 | ) | (11,353 | ) | |||||||||||||||||||||||||
| Share-based payment | 9 | - | 688 | - | - | - | - | 697 | 12 | 709 | ||||||||||||||||||||||||||||||
| Balance as of June 30, 2016 (unaudited) | 7,039 | 332,873 | 19,976 | 8,983 | (3,628 | ) | (1,403 | ) | (334,062 | ) | (29,778 | ) | 351 | 30,129 | ||||||||||||||||||||||||||
| Balance as of January 1, 2015 | 5,441 | 301,787 | 17,153 | 9,652 | (3,628 | ) | (1,015 | ) | (304,150 | ) | 25,240 | 1,460 | 26,700 | |||||||||||||||||||||||||||
| Loss | - | - | - | - | - | - | (7,898 | ) | (7,898 | ) | (371 | ) | (8,269 | ) | ||||||||||||||||||||||||||
| Foreign currency translation reserve | - | - | - | - | - | 304 | - | 304 | 66 | 370 | ||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | - | - | - | - | - | 304 | (7,898 | ) | (7,594 | ) | (305 | ) | (7,899 | ) | ||||||||||||||||||||||||||
| Expire of warrants exercisable into shares | - | 669 | - | (669 | ) | - | - | - | - | - | - | |||||||||||||||||||||||||||||
| Share-based payment | - | - | 72 | - | - | - | - | 72 | 55 | 127 | ||||||||||||||||||||||||||||||
| Balance as of June 30, 2015 (unaudited) | 5,441 | 302,456 | 17,225 | 8,983 | (3,628 | ) | (711 | ) | (312,048 | ) | 17,718 | 1,210 | 18,928 |
accompanying notes are an integral part of the interim consolidated financial statements.
CAN-FITE BIOPHARMA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
in thousands (except for share and per share data)
| 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 | |||||||||||||||||||||||||||||||
| Convenience translation into U.S. dollars | ||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2016 | 1,828 | 86,550 | 5,015 | 2,336 | (943 | ) | (364 | ) | (83,951 | ) | 10,471 | 131 | 10,602 | |||||||||||||||||||||||||||
| Loss | - | - | - | - | - | - | (2,908 | ) | (2,908 | ) | (43 | ) | (2,951 | ) | ||||||||||||||||||||||||||
| Adjustments arising from translating financial statements of foreign operations | - | - | - | - | - | (1 | ) | - | (1 | ) | - | (1 | ) | |||||||||||||||||||||||||||
| Total comprehensive income (loss) | - | - | - | - | - | (1 | ) | (2,908 | ) | (2,909 | ) | (43 | ) | (2,952 | ) | |||||||||||||||||||||||||
| Share-based payment | 2 | - | 179 | - | - | - | - | 181 | 3 | 184 | ||||||||||||||||||||||||||||||
| Balance as of June, 2016 | 1,830 | 86,550 | 5,194 | 2,336 | (943 | ) | (365 | ) | (86,859 | ) | 7,743 | 91 | 7,834 |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
CAN-FITE BIOPHARMA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
thousands (except for share and per share data)
| Convenience translation into U.S. dollars | ||||||||||||
| Six months ended June 30, | ||||||||||||
| 2016 | 2016 | 2015 | ||||||||||
| Unaudited | ||||||||||||
| USD | NIS | NIS | ||||||||||
| Cash flows from operating activities : | ||||||||||||
| Net loss | (2,951 | ) | (11,350 | ) | (8,269 | ) | ||||||
| Adjustments to reconcile net loss to net cash used: | ||||||||||||
| Depreciation of property, plant and equipment | 9 | 35 | 30 | |||||||||
| Share-based payment | 184 | 709 | 127 | |||||||||
| Increase (decrease) in severance pay, net | 3 | 13 | (10 | ) | ||||||||
| Changes in fair value of warrants liability exercisable into shares | (929 | ) | (3,574 | ) | (2,872 | ) | ||||||
| Exchange differences on balances of cash and cash equivalents | (154 | ) | (593 | ) | (658 | ) | ||||||
| (887 | ) | (3,410 | ) | (3,383 | ) | |||||||
| Working capital adjustments: | ||||||||||||
| Decrease (Increase) in accounts receivable and prepaid expenses and lease deposit | (1,087 | ) | (4,187 | ) | 535 | |||||||
| Increase (decrease) in trade payables | 176 | 678 | (597 | ) | ||||||||
| Increase (decrease) in deferred revenues | (111 | ) | (428 | ) | 4,870 | |||||||
| Decrease in other accounts payable | (381 | ) | (1,464 | ) | (563 | ) | ||||||
| (1,404 | ) | (5,401 | ) | 4,245 | ||||||||
| Net cash used in operating activities | (5,242 | ) | (20,161 | ) | (7,407 | ) |
accompanying notes are an integral part of the interim condensed consolidated financial statements.
CAN-FITE BIOPHARMA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
thousands (except for share and per share data)
| Convenience translation into U.S. dollars | ||||||||||||
| Six months ended June 30, | ||||||||||||
| 2016 | 2016 | 2015 | ||||||||||
| Unaudited | ||||||||||||
| USD | NIS | NIS | ||||||||||
| Cash flows from investing activities : | ||||||||||||
| Purchase of property, plant and equipment | (9 | ) | (36 | ) | (143 | ) | ||||||
| Net cash used in investing activities | (9 | ) | (36 | ) | (143 | ) | ||||||
| Exchange differences on balances of cash and cash equivalents | 154 | 593 | 658 | |||||||||
| Decrease in cash and cash equivalents | (5,097 | ) | (19,604 | ) | (6,892 | ) | ||||||
| Cash and cash equivalents at the beginning of the period | 17,167 | 66,026 | 36,091 | |||||||||
| Cash and cash equivalents at the end of the period | 12,070 | 46,422 | 29,199 | |||||||||
| Supplemental disclosure of cash flow information: | ||||||||||||
| Cash received during the year for interest | 20 | 75 | 18 |
accompanying notes are an integral part of the interim condensed consolidated financial statements.
NOTES TO INTERIM CONDENSED CONSOLIDATED
STATEMENTS (UNAUDITED)
these consolidated financial statements:
| 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 IAS 27 (2008)) 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. |
TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)
Company's management and board of directors are of the opinion that these financial resources will be sufficient to continue the
development of the company's products at least for twelve months from the balance sheet date.
2:- SIGNIFICANT ACCOUNTING POLICIES
interim condensed consolidated financial statements for the six months period ended June 30, 2016 have been prepared in accordance
with IAS 34, "Interim Financial Reporting".
accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with
those followed in the preparation of the Company's annual financial statements for the year ended December 31, 2015.
the convenience of the reader, the reported NIS amounts as of June 30, 2016 have been translate into U.S. dollars at the
representative rate of exchange on June 30, 2016 (U.S. $1 = NIS 3.846). 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.
3:- CONTINGENT LIABILITIES AND COMMITMENTS
TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)
3:- CONTINGENT LIABILITIES AND COMMITMENTS (Cont.)
of June 30, 2016, the Company accrued NIS 1,635 thousand (approximately $425 thousand) in other accounts payable with respect
Company is committed to pay royalties as follows:
of December 31, 2015, and as of June 30, 2016, no accrual is recorded with respect to Leiden University.
the terms of the agreement, Cipher made an upfront payment of NIS 5,141 thousand (CAD 1,650 thousand) to the Company in
March 2015. In addition, the agreement provides that additional payments of up to CAD 2,000 thousand will be received by the
Company upon the achievement of certain milestones plus royalty payments of 16.5% of net sales of CF101 in Canada. The
agreement further provides that the Company will deliver finished product to Cipher and that Cipher will reimburse the
Company for the cost of manufacturing.
TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)
3:- CONTINGENT LIABILITIES AND COMMITMENTS (Cont.)
under the distribution agreement, the Company shall be responsible for conducting product development activities including management
of the clinical studies required in order to secure regulatory approvals, and shall use commercially reasonable efforts in conducting
such activities. In addition, the Company agreed to form a joint steering committee with Cipher which will oversee the progress
of the clinical studies.
Company identified four components in the agreement: (i) performing the research and development services through regulatory approval;
(ii) exclusive license to distribute the product in Canada; (iii) participation in joint steering committee; and,
royalties resulting from future sales of the product. Components (i) - (iii) were analyzed as one unit of accounting. Consequently,
revenue from these components is recorded based on the term of the research and development services (which is the last deliverable
in the arrangement). The Company estimates these services will spread over a period of 24 quarters beginning March 2015. Component
(iv) was not accounted as part of the research and development services and will be recognized entirely upon the Company reaching
to the license agreement, the Company is entitled to receive the following amounts:
TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)
3:- CONTINGENT LIABILITIES AND COMMITMENTS (Cont.)
of December 31, 2015, and as of June 30, 2016, the Company estimates that such contingent payments are remote.
June 29, 2015 the Company was served with a motion to approve a purported class action, naming the Company, its Chief
Executive Officer and its directors as defendants. The motion was filed with the District Court of Tel-Aviv. The lawsuit
alleges, among other things, that the Company misled the public with regard to disclosures concerning the efficacy of the
Company's drug candidate, CF101. The claimant alleges that he suffered personal damages of over NIS 73 thousand,
while also claiming that the shareholders of the Company suffered damages of approximately NIS 125 million. The Company
believes it has strong defense against these allegations and that the District Court should deny the motion to approve the
class action, however, there is no assurance that the Company's position will be accepted by the District Court. In
such case the Company may have to divert attention of its executives to deal with this class action as well as incur expenses
that may be beyond its insurance coverage for such cases, which cause a risk of loss and expenditures that may adversely
affect its financial condition and results of operations.
| June 30, 2016 | December 31, 2015 | ||||||||||||||||
| Authorized | Issued and outstanding | Authorized | Issued and outstanding | ||||||||||||||
| Number of Shares | |||||||||||||||||
| Ordinary shares of NIS 0.25 par value each | 80,000,000 | 28,156,728 | 80,000,000 | 28,119,728 |
TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)
addition, the Company's board of directors approved a grant of 20,000 options exercisable up to 20,000 Ordinary Shares of the
Company to one of its advisers at an exercise price of 5.376 NIS per Share. The options will vest on a quarterly basis for a period
of 48 months from the grant date.
TO INTERIM CONDENSED CONSOLIDATED STATEMENTS (UNAUDITED)
5:- TRANSACTIONS WITH RELATED PARTIES
following table provides the total amount of transactions that have been entered into with related parties during the six months
ended June 30, 2016 and 2015:
| Six months ended June 30, | |||||||||
| 2016 | 2015 | ||||||||
| NIS in thousands | |||||||||
| Management and consulting fees and share based payment | 964 | 525 | |||||||
| Other expenses | 23 | 24 | |||||||
| Patent expenses | 331 | 253 | |||||||
| Directors' fee and share-based payment | 214 | 264 |