Full Press Release Details
PHARMACEUTICALS LTD.
INTERIM FINANCIAL STATEMENTS
| Page | |
| Condensed Interim Balance Sheets | F-2 - F-3 |
| Condensed Interim Statements of Comprehensive Loss | F-4 |
| Condensed Interim Statements of Changes in Shareholders' Deficiency | F-5 - F-7 |
| Condensed Interim Statements of Cash Flows | F-8- F-9 |
| Notes to Condensed Interim Financial Statements | F-10 - F-15 |
PHARMACEUTICALS LTD.
INTERIM BALANCE SHEETS
thousands, except share and per share data
| Convenience | ||||||||||||||||
| Translation | ||||||||||||||||
| (Note 2c) | ||||||||||||||||
| December 31, | June 30, | June 30, | ||||||||||||||
| 2019 | 2019 | 2020 | 2020 | |||||||||||||
| Audited | Unaudited | Unaudited | ||||||||||||||
| N I S | U.S. dollars | |||||||||||||||
| CURRENT ASSETS: | ||||||||||||||||
| Cash and cash equivalents | 72,467 | 33,916 | 38,752 | 11,181 | ||||||||||||
| Other receivables | 656 | 1,258 | 2,467 | 712 | ||||||||||||
| 73,123 | 35,174 | 41,219 | 11,893 | |||||||||||||
| LONG-TERM ASSETS: | ||||||||||||||||
| Property, plant and equipment | 34,981 | 32,475 | 36,937 | 10,658 | ||||||||||||
| Right-of-use assets | 7,136 | 7,610 | 6,662 | 1,922 | ||||||||||||
| Other long-term assets | 510 | 510 | 891 | 257 | ||||||||||||
| 42,627 | 40,595 | 44,490 | 12,837 | |||||||||||||
| 115,750 | 75,769 | 85,709 | 24,730 |
accompanying notes are an integral part of the condensed interim financial statements.
PHARMACEUTICALS LTD.
INTERIM BALANCE SHEETS
thousands, except share and per share data
| Convenience | ||||||||||||||||
| Translation | ||||||||||||||||
| (Note 2c) | ||||||||||||||||
| December 31, | June 30, | June 31, | ||||||||||||||
| 2019 | 2019 | 2020 | 2020 | |||||||||||||
| Audited | Unaudited | Unaudited | ||||||||||||||
| N I S | U.S. dollars | |||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||||
| Trade payables | 17,062 | 7,977 | 4,070 | 1,175 | ||||||||||||
| Operating lease liabilities | 694 | 686 | 676 | 195 | ||||||||||||
| Other payables | 1,203 | 1,348 | 1,609 | 465 | ||||||||||||
| 18,959 | 10,011 | 6,355 | 1,835 | |||||||||||||
| LONG-TERM LIABILITIES: | ||||||||||||||||
| Liability in respect of government grants | 14,812 | 14,621 | 12,686 | 3,660 | ||||||||||||
| Operating lease liabilities | 6,809 | 7,076 | 6,457 | 1,863 | ||||||||||||
| Loan from others | 123,780 | 110,971 | 122,041 | 35,211 | ||||||||||||
| Warrants | 16,354 | 5,517 | - | - | ||||||||||||
| Severance pay liability, net | 89 | 86 | 92 | 26 | ||||||||||||
| 161,844 | 138,271 | 141,276 | 40,760 | |||||||||||||
| SHAREHOLDERS' EQUITY: | ||||||||||||||||
| Ordinary shares of no par value: Authorized: 600,000,000, 391,000,000 and 600,000,000 shares at June 30, 2020 and 2019 (unaudited) and December 31, 2019, respectively; Issued and outstanding: 460,822,640, 261,419,599 and 402,351,657 shares at June 30, 2020 and 2019 (unaudited) and December 31, 2019, respectively | *)- | *)- | *)- | *)- | ||||||||||||
| Share premium | 255,285 | 185,454 | 304,089 | 87,735 | ||||||||||||
| Accumulated deficit | (320,338 | ) | (257,967 | ) | (366,011 | ) | (105,600 | ) | ||||||||
| (65,053 | ) | (72,513 | ) | (61,922 | ) | (17,865 | ) | |||||||||
| 115,750 | 75,769 | 85,709 | 24,730 |
accompanying notes are an integral part of the condensed interim financial statements.
| , 2020 | ||||||
| Date of approval of the | Mark Germain | Ron Babecoff | Uri Ben-Or | |||
| financial statements | Chairman of the Board | Chief Executive Officer | Chief Financial Officer |
PHARMACEUTICALS LTD.
INTERIM STATEMENTS OF COMPREHENSIVE LOSS
thousands, except share and per share data
| Convenience translation (Note 2) | ||||||||||||||||||||||||
| Year ended December 31, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
| 2019 | 2019 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
| Audited | Unaudited | Unaudited | ||||||||||||||||||||||
| N I S | U.S. dollars | |||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Research and development, net of participations | 68,645 | 15,172 | 11,948 | 20,904 | 31,016 | 8,949 | ||||||||||||||||||
| Marketing, general and administrative | 9,706 | 4,518 | 4,139 | 5,951 | 5,120 | 1,476 | ||||||||||||||||||
| Total operating expenses | 78,351 | 19,690 | 16,087 | 26,855 | 36,136 | 10,425 | ||||||||||||||||||
| Operating loss | (78,351 | ) | (19,690 | ) | (16,087 | ) | (26,855 | ) | (36,136 | ) | (10,425 | ) | ||||||||||||
| Financial income | 4 | - | (11,291 | ) | 24 | 5,211 | 1,503 | |||||||||||||||||
| Financial expense | (30,847 | ) | (27,699 | ) | (14,600 | ) | (19,992 | ) | (14,748 | ) | (4,255 | ) | ||||||||||||
| Net loss | (109,194 | ) | (47,389 | ) | (41,978 | ) | (46,823 | ) | (45,673 | ) | (13,177 | ) | ||||||||||||
| Basic and diluted net loss per share (NIS) | (0.33 | ) | (0.18 | ) | (0.10 | ) | (0.18 | ) | (0.11 | ) | (0.03 | ) | ||||||||||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per share | 326,651,721 | 261,482,786 | 433,498,227 | 261,435,179 | 431,485,801 | 431,485,801 |
accompanying notes are an integral part of the condensed interim financial statements.
PHARMACEUTICALS LTD.
INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIENCY
thousands, except share and per share data
| Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
| Unaudited | ||||||||||||||||
| N I S | ||||||||||||||||
| Balance as of January 1, 2020 | *)- | 255,285 | (320,338 | ) | (65,053 | ) | ||||||||||
| Total comprehensive loss | - | - | (45,673 | ) | (45,673 | ) | ||||||||||
| Exercise of warrants | - | 45,274 | - | 45,274 | ||||||||||||
| Share-based compensation | - | 3,530 | - | 3,530 | ||||||||||||
| Balance as of June 30, 2020 | *)- | 304,089 | (366,011 | ) | (61,922 | ) | ||||||||||
| Balance as of June 30, 2020 (convenience translation into U.S. dollars (see Note 2c) | *)- | 87,735 | (105,600 | ) | (17,865 | ) |
| Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
| Unaudited | ||||||||||||||||
| N I S | ||||||||||||||||
| Balance as of April 1, 2020 | *)- | 262,729 | (324,033 | ) | (61,304 | ) | ||||||||||
| Total comprehensive loss | - | - | (41,978 | ) | (41,978 | ) | ||||||||||
| Exercise of warrants | - | 38,034 | - | 38,034 | ||||||||||||
| Share-based compensation | - | 3,326 | - | 3,326 | ||||||||||||
| Balance as of June 30, 2020 | *)- | 304,089 | (366,011 | ) | (61,922 | ) | ||||||||||
| Balance as of June 30, 2020 (convenience translation into U.S. dollars (see Note 2c) | *)- | 87,735 | (105,600 | ) | (17,865 | ) |
accompanying notes are an integral part of the condensed interim financial statements.
PHARMACEUTICALS LTD.
INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIENCY
thousands, except share and per share data
| Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
| Unaudited | ||||||||||||||||
| N I S | ||||||||||||||||
| Balance as of January 1, 2019 | *)- | 179,929 | (211,144 | ) | (30,215 | ) | ||||||||||
| Total comprehensive loss | - | - | (46,823 | ) | (46,823 | ) | ||||||||||
| Exercise of Options | *)- | 1,402 | - | 1,402 | ||||||||||||
| Share-based compensation | 4,065 | - | 4,123 | |||||||||||||
| Balance as of June 30, 2019 | *)- | 185,454 | (257,967 | ) | (72,513 | ) | ||||||||||
| Balance as of June 30, 2019 (convenience translation into U.S. dollars (see Note 2c) | *)- | 53,507 | (74,428 | ) | (20,921 | ) |
| Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
| Unaudited | ||||||||||||||||
| N I S | ||||||||||||||||
| Balance as of April 1, 2019 | *)- | 179,987 | (210,578 | ) | (30,591 | ) | ||||||||||
| Total comprehensive loss | - | - | (47,389 | ) | (47,389 | ) | ||||||||||
| Exercise of Options | *)- | 1,402 | - | 1,402 | ||||||||||||
| Share-based compensation | - | 4,065 | - | 4,065 | ||||||||||||
| Balance as of June 30, 2019 | *)- | 185,454 | (257,967 | ) | (72,513 | ) | ||||||||||
| Balance as of June 30, 2019 (convenience translation into U.S. dollars (see Note 2c) | *)- | 53,507 | (74,428 | ) | (20,921 | ) |
accompanying notes are an integral part of the condensed interim financial statements.
PHARMACEUTICALS LTD.
INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIENCY
thousands, except share and per share data
| Share capital | Share premium | Accumulated deficit | Total deficiency | |||||||||||||
| Audited | ||||||||||||||||
| N I S | ||||||||||||||||
| Balance as of January 1, 2019 | *)- | 179,929 | (211,144 | ) | (31,215 | ) | ||||||||||
| Total comprehensive loss | - | - | (109,194 | ) | (109,194 | ) | ||||||||||
| Issuance of ordinary shares, net of issuance costs | - | 70,270 | - | 70,270 | ||||||||||||
| Exercise of options | - | 1,402 | - | 1,402 | ||||||||||||
| Share-based compensation | - | 3,684 | - | 3,684 | ||||||||||||
| Balance as of December 31, 2019 | *)- | 255,285 | (320,338 | ) | (65,053 | ) | ||||||||||
| Balance as of December 31, 2019 (convenience translation into U.S. dollars (see Note 2c) | *)- | 73,654 | (92,423 | ) | (18,769 | ) |
accompanying notes are an integral part of the condensed interim financial statements.
PHARMACEUTICALS LTD.
INTERIM STATEMENTS OF CASH FLOWS
thousands, except share and per share data
| Convenience translation (Note 2) | ||||||||||||||||||||||||
| Year ended December 31, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
| 2019 | 2019 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
| Audited | Unaudited | Unaudited | ||||||||||||||||||||||
| N I S | U.S. dollars | |||||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||
| Net loss | (109,194 | ) | (47,389 | ) | (41,978 | ) | (46,823 | ) | (45,673 | ) | (13,177 | ) | ||||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||
| Adjustments to profit and loss items: | ||||||||||||||||||||||||
| Depreciation of property, plant and equipment and right-of-use assets | 1,645 | 263 | 603 | 525 | 1,204 | 347 | ||||||||||||||||||
| Net financial expenses | 15,902 | 5,621 | 21,601 | 3,378 | 13,062 | 3,769 | ||||||||||||||||||
| Capital gain | - | - | - | - | (160 | ) | (46 | ) | ||||||||||||||||
| Increase in liability with respect to loans from others | 14,083 | 22,179 | 4,257 | 16,611 | (1,739 | ) | (502 | ) | ||||||||||||||||
| Increase (decrease) in liability with respect to government grants | 169 | 53 | (305 | ) | (22 | ) | (2,126 | ) | (613 | ) | ||||||||||||||
| Share-based compensation | 3,684 | 4,065 | 3,326 | 4,124 | 3,530 | 1,018 | ||||||||||||||||||
| Change in employee benefit liabilities, net | 7 | 2 | 2 | 4 | 3 | 1 | ||||||||||||||||||
| 35,490 | 32,183 | 29,484 | 24,620 | 13,774 | 3,974 | |||||||||||||||||||
| Changes in asset and liability items: | - | |||||||||||||||||||||||
| Decrease (increase) in other receivables | 309 | 596 | (927 | ) | (293 | ) | (1,811 | ) | (523 | ) | ||||||||||||||
| Increase (decrease) in trade payables | (3,661 | ) | (7,272 | ) | 792 | (12,746 | ) | (12,992 | ) | (3,748 | ) | |||||||||||||
| Increase in other payables | 127 | 73 | 801 | 272 | 405 | 117 | ||||||||||||||||||
| (3,225 | ) | (6,603 | ) | 666 | (12,767 | ) | (14,398 | ) | (4,154 | ) | ||||||||||||||
| Cash paid and received during the year for: | ||||||||||||||||||||||||
| Interest paid | (131 | ) | (44 | ) | (12 | ) | (110 | ) | (24 | ) | (7 | ) | ||||||||||||
| Interest received | 2 | 1 | 1 | 1 | 1 | *)- | ||||||||||||||||||
| (129 | ) | (43 | ) | (11 | ) | (109 | ) | (23 | ) | (7 | ) | |||||||||||||
| Net cash flows used in operating activities | (77,058 | ) | (21,852 | ) | (11,839 | ) | (35,079 | ) | (46,320 | ) | (13,364 | ) |
accompanying notes are an integral part of the condensed interim financial statements.
PHARMACEUTICALS LTD.
INTERIM STATEMENTS OF CASH FLOWS
thousands, except share and per share data
| Convenience translation (Note 2) | ||||||||||||||||||||||||
| Year ended December 31, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
| 2019 | 2019 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||
| Audited | Unaudited | Unaudited | ||||||||||||||||||||||
| N I S | U.S. dollars | |||||||||||||||||||||||
| Cash Flows from Investing Activities: | ||||||||||||||||||||||||
| Purchase of property and equipment | (7,429 | ) | (1,084 | ) | (1,315 | ) | (4,277 | ) | (2,687 | ) | (775 | ) | ||||||||||||
| Proceeds from sale of property and equipment | - | - | - | - | 160 | 46 | ||||||||||||||||||
| Increase (decrease) in other long term assets | 230 | 201 | 8 | 230 | (381 | ) | (110 | ) | ||||||||||||||||
| Net cash used in investing activities | (7,199 | ) | (883 | ) | (1,307 | ) | (4,047 | ) | (2,908 | ) | (839 | ) | ||||||||||||
| Cash Flows from Financing Activities: | ||||||||||||||||||||||||
| Proceeds from loan from others | 15,337 | - | - | - | - | - | ||||||||||||||||||
| Repayment of operating lease liabilities | (581 | ) | (315 | ) | (310 | ) | (629 | ) | (622 | ) | (179 | ) | ||||||||||||
| Proceeds from exercise of warrants to public | 188 | 188 | 10,344 | 188 | 14,790 | 4,267 | ||||||||||||||||||
| Proceeds from issuance of shares and options | 70,270 | - | - | - | - | |||||||||||||||||||
| Net cash provided by (used in) financing activities | 85,214 | (127 | ) | 10,034 | (441 | ) | 14,168 | 4,088 | ||||||||||||||||
| Exchange differences on balances of cash and cash equivalents | (4,373 | ) | (599 | ) | (642 | ) | (2,400 | ) | 1,345 | 388 | ||||||||||||||
| Decrease in cash and cash equivalents | (3,416 | ) | (23,461 | ) | (3,754 | ) | (41,967 | ) | (33,715 | ) | (9,727 | ) | ||||||||||||
| Balance of cash and cash equivalents at the beginning of the period | 75,883 | 57,377 | 42,506 | 75,883 | 72,467 | 20,908 | ||||||||||||||||||
| Balance of cash and cash equivalents at the end of the period | 72,467 | 33,916 | 38,752 | 33,916 | 38,752 | 11,181 | ||||||||||||||||||
| Non cash financing activities | ||||||||||||||||||||||||
| Exercise of warrants to the public | 1,214 | 1,214 | 27,690 | 1,214 | 30,484 | 8,795 |
accompanying notes are an integral part of the condensed interim financial statements.
PHARMACEUTICALS LTD.
TO FINANCIAL STATEMENTS
thousands, except share and per share data
Company's shares are traded on the NASDAQ.
date the Company has not generated any revenues and may need to raise additional funds to finance clinical trials that may by
required by various regulatory agencies in the future.
the Company intends to continue to finance its operating activities by raising capital. There are no assurances that the Company
will be successful in obtaining an adequate level of financing needed for its long-term research and development activities.
the Company will not have the sufficient liquidity resources, the Company may not be able to continue the development of all or
certain aspects of its products or may be required to implement a cost reduction and may be required to delay part of its development
program. The Company's management and Board of Directors are of the opinion that its current financial resources will be
sufficient to continue the development of the Company's products for at least the next twelve months.
PHARMACEUTICALS LTD.
TO FINANCIAL STATEMENTS
thousands, except share and per share data
financial statements as of June 30, 2020 and for the six months then ended have been translated into dollars using the representative
exchange rate as of that date ($ 1 = NIS 3.466). The translation was made solely for the convenience of the reader.
The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in dollars
or convertible into dollars, unless otherwise indicated in these statements.
financial statements have been prepared in a condensed format as of June 30, 2020, and for the three and six months then ended
("interim financial statements"). These financial statements should be read in conjunction with the Company's annual
financial statements as of December 31, 2019, and for the year then ended and accompanying notes ("annual financial statements").
of preparation of the interim financial statements
interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the
preparation of financial statements for interim periods, as prescribed in IAS 34.
significant accounting policies and methods of computation adopted in the preparation of the interim financial statements are
consistent with those followed in the preparation of the Company's annual financial statements.
PHARMACEUTICALS LTD.
TO FINANCIAL STATEMENTS
thousands, except share and per share data
| Convenience | ||||||||||||||||
| translation (Note 2c ) | ||||||||||||||||
| December 31, | June 30, | June 30, | ||||||||||||||
| 2019 | 2019 | 2020 | 2020 | |||||||||||||
| N I S | N I S | U.S. dollars | ||||||||||||||
| Financial liabilities at amortized costs: | ||||||||||||||||
| Trade payables | 17,062 | 7,977 | 4,070 | 1,175 | ||||||||||||
| Other payables | 1,203 | 1,348 | 1,609 | 465 | ||||||||||||
| Liability in respect of government grants | 14,812 | 14,621 | 12,686 | 3,660 | ||||||||||||
| Lease liabilities | 7,503 | 7,762 | 7,133 | 2,058 | ||||||||||||
| Loan from others | 123,780 | 110,971 | 122,041 | 35,211 | ||||||||||||
| 164,360 | 142,679 | 147,539 | 42,569 | |||||||||||||
| Financial liabilities at fair value through profit and loss: | ||||||||||||||||
| Warrants measured at fair value | 16,354 | 5,517 | - | - | ||||||||||||
| Total financial liabilities | 180,714 | 148,196 | 147,539 | 42,567 | ||||||||||||
| Total current | 18,959 | 10,011 | 6,355 | 1,835 | ||||||||||||
| Total non-current | 161,755 | 138,185 | 141,184 | 40,732 |
of June 30, 2020, there are no financial instruments measured at fair value and classified as Level 1 while loans from others
and government grants are classified as Level 2.
of June 30, 2020 there were no transfers in respect of fair value measurement of any financial instrument between Level 1 and
Level 2, and there were no transfers into or out of Level 3 fair value measurements of any financial instrument.
PHARMACEUTICALS LTD.
TO FINANCIAL STATEMENTS
thousands, except share and per share data
| Loans from others | Lease liabilities | Total liabilities arising from financing activities | ||||||||||
| N I S | ||||||||||||
| Balance as of January 1, 2020 | 123,780 | 7,503 | 131,283 | |||||||||
| Cash flows | - | (370 | ) | (370 | ) | |||||||
| Effect of changes in fair value | (1,739 | ) | - | (1,739 | ) | |||||||
| Balance as of June 30, 2020 (unaudited) | 122,041 | 7,133 | 129,174 |
| Loans from others | Lease liabilities | Total liabilities arising from financing activities | ||||||||||
| N I S | ||||||||||||
| Balance as of January 1, 2019 | 94,360 | - | 94,360 | |||||||||
| Adoption of IFRS 16 | - | 8,084 | 8,084 | |||||||||
| Cash flows | - | (322 | ) | (322 | ) | |||||||
| Effect of changes in fair value | 16,611 | - | 16,611 | |||||||||
| Balance as of June 30, 2019 (unaudited) | 110,971 | 7,762 | 118,733 |
| Loans from others | Lease liabilities | Total liabilities arising from financing activities | ||||||||||
| N I S | ||||||||||||
| Balance as of January 1, 2019 | 94,360 | - | 94,360 | |||||||||
| Adoption of IFRS 16 | - | 8,084 | 8,084 | |||||||||
| Cash flows | 15,337 | (581 | ) | 14,756 | ||||||||
| Effect of changes in fair value | 14,083 | - | 14,083 | |||||||||
| Balance as of December 31, 2019 | 123,780 | 7,503 | 131,283 |
PHARMACEUTICALS LTD.
TO FINANCIAL STATEMENTS
thousands, except share and per share data
total value of the grant was NIS 4,190 ($ 1,209)
the same day, the Company's Board of Directors approved a grant to an advisor to purchase 72,000 ADS (2,880,000 Ordinary shares)
at an exercise price of $18.06 per ADS in three tranches. The first tranche of 32,400 ADS's was vested on May 31,2020, the second
tranche of 25,200 ADS will be vested on September 30, 2020 and the third tranche of 14,400 ADS's will be vested on December 31,
2020. The options will be expire four years from the commencement vesting date of each tranche.
total value of the grant was NIS 2,783 ($ 803)
| For the six months ended June 30, | ||
| 2020 | ||
| Dividend yield (%) | - | |
| Expected volatility of the share prices (%) | 66 | |
| Risk-free interest rate (%) | 0.7-0.8 | |
| Expected life of share options (years) | 6-7 | |
| Share price (NIS) | (1) 7.05-18 |
PHARMACEUTICALS LTD.
TO FINANCIAL STATEMENTS
thousands, except share and per share data