Full Press Release Details
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
| Page | |
| Consolidated Statements of Financial Position | 2-3 |
| Consolidated Statements of Profit or Loss and Other Comprehensive Loss | 4 |
| Consolidated Statements of Changes in Equity (Deficit) | 5-7 |
| Consolidated Statements of Cash Flows | 8-10 |
| Notes to Interim Consolidated Financial Statements | 11-17 |
STATEMENTS OF FINANCIAL POSITION
| June 30, | December 31, | |||||||||||||||
| 2021 | 2020 | 2020 | ||||||||||||||
| Unaudited | Audited | |||||||||||||||
| Note | USD in thousands | |||||||||||||||
| ASSETS | ||||||||||||||||
| CURRENT ASSETS: | ||||||||||||||||
| Cash and cash equivalents | $ | 7,590 | $ | 144 | $ | 1,946 | ||||||||||
| Restricted deposit | 11 | 34 | 10 | |||||||||||||
| Other accounts receivable | 731 | 632 | 594 | |||||||||||||
| 8,332 | 810 | 2,550 | ||||||||||||||
| NON-CURRENT ASSETS: | ||||||||||||||||
| Investment in associate | - | 742 | - | |||||||||||||
| Property and equipment, net | 10 | 41 | 11 | |||||||||||||
| 10 | 783 | 11 | ||||||||||||||
| $ | 8,342 | $ | 1,593 | $ | 2,561 |
The accompanying notes are an integral part of
the interim consolidated financial statements.
STATEMENTS OF FINANCIAL POSITION
| June 30, | December 31, | |||||||||||||||
| 2021 | 2020 | 2020 | ||||||||||||||
| Unaudited | Audited | |||||||||||||||
| Note | USD in thousands | |||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||||
| Trade payables | $ | 354 | $ | 1,108 | $ | 556 | ||||||||||
| Other accounts payable | 34 | 65 | 34 | |||||||||||||
| Short-term loan | - | 61 | 188 | |||||||||||||
| Convertible component | 3b | - | 397 | - | ||||||||||||
| Warrants | 366 | - | 353 | |||||||||||||
| 754 | 1,637 | 1,131 | ||||||||||||||
| NON- CURRENT LIABILITIES: | ||||||||||||||||
| Warrants | 3b, 4b | - | 598 | - | ||||||||||||
| - | 598 | - | ||||||||||||||
| EQUITY (DEFICIT) ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | 4 | |||||||||||||||
| Share capital and premium | 53,802 | 47,721 | 49,040 | |||||||||||||
| Reserve from share-based payment transactions | 4,312 | 4,872 | 4,315 | |||||||||||||
| Warrants | 6,256 | - | 2,207 | |||||||||||||
| Foreign currency translation reserve | 497 | 497 | 497 | |||||||||||||
| Transactions with non-controlling interests | 559 | 559 | 559 | |||||||||||||
| Accumulated deficit | (57,838 | ) | (54,344 | ) | (55,188 | ) | ||||||||||
| 7,588 | (695 | ) | 1,430 | |||||||||||||
| Non-controlling interests | - | 53 | - | |||||||||||||
| Total equity (deficit) | 7,588 | (642 | ) | 1,430 | ||||||||||||
| $ | 8,342 | $ | 1,593 | $ | 2,561 |
The accompanying notes are an integral part of
the interim consolidated financial statements.
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE LOSS
| Six months ended June 30, | Year Ended December 31, | |||||||||||||||
| 2021 | 2020 | 2020 | ||||||||||||||
| Unaudited | Audited | |||||||||||||||
| Note | USD in thousands, except per share amounts | |||||||||||||||
| Research and development expenses | 5a | $ | 962 | $ | 493 | $ | 649 | |||||||||
| General and administrative expenses | 5b | 1,665 | 970 | 1,902 | ||||||||||||
| Other expenses | - | - | 742 | |||||||||||||
| Operating loss | 2,627 | 1,463 | 3,293 | |||||||||||||
| Finance income | - | (29 | ) | (630 | ) | |||||||||||
| Finance expenses | 23 | 1,204 | 872 | |||||||||||||
| Loss from operations | 2,650 | 2,638 | 3,535 | |||||||||||||
| Loss | 2,650 | 2,638 | 3,535 | |||||||||||||
| Total comprehensive loss | 2,650 | 2,638 | 3,535 | |||||||||||||
| Attributable to: | ||||||||||||||||
| Equity holders of the Company | 2,650 | 2,638 | 3,482 | |||||||||||||
| Non-controlling interests | - | - | (53 | ) | ||||||||||||
| 2,650 | 2,638 | 3,535 | ||||||||||||||
| Basic loss per share attributable to equity holders of the Company: | ||||||||||||||||
| Loss from operations | 0.01 | 0.01 | 0.10 | |||||||||||||
| Diluted loss per share attributable to equity holders of the Company: | ||||||||||||||||
| Loss from operations | 0.01 | 0.01 | 0.11 |
The accompanying notes are an integral part of
the interim consolidated financial statements.
STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
For the six months ended June 30, 2021
| Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||
| Share capital and premium | Reserve from share-based payment transactions | Warrants | Transactions with non- controlling interests | Foreign currency translation reserve | Accumulated deficit | Total | Non-controlling interests | Total equity | ||||||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2021 | $ | 49,040 | 4,315 | 2,207 | 559 | 497 | (55,188 | ) | 1,430 | - | 1,430 | |||||||||||||||||||||||||
| Income (loss) | - | - | - | - | - | (2,650 | ) | (2,650 | ) | - | (2,650 | ) | ||||||||||||||||||||||||
| Issue of share capital, net of issue expenses (*)(Note 4d) | 3,365 | - | 4,334 | - | - | - | 7,699 | - | 7,699 | |||||||||||||||||||||||||||
| Exercise of warrants (Note 4c) | 1,370 | - | (285 | ) | - | - | - | 1,085 | - | 1,085 | ||||||||||||||||||||||||||
| Expiration of share options | 27 | (27 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Cost of share-based payment | - | 24 | - | - | - | - | 24 | - | 24 | |||||||||||||||||||||||||||
| Balance at June 30, 2021 | $ | 53,802 | 4,312 | 6,256 | 559 | 497 | (57,838 | ) | 7,588 | - | 7,588 |
The accompanying notes are an integral part of
the interim consolidated financial statements.
STATEMENTS OF CHANGES IN EQUITY
For the six months ended June 30, 2020
| Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||
| Share capital and premium | Reserve from share-based payment transactions | Warrants | Transactions with non- controlling interests | Foreign currency translation reserve | Accumulated deficit | Total | Non-controlling interests | Total equity | ||||||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2020 | $ | 46,100 | 4,862 | - | 261 | 497 | (51,706 | ) | 14 | - | 14 | |||||||||||||||||||||||||
| Income (loss) | - | - | - | - | - | (2,638 | ) | (2,638 | ) | - | (2,638 | ) | ||||||||||||||||||||||||
| Warrants reclassification | ||||||||||||||||||||||||||||||||||||
| Issue of share capital | 1,462 | - | - | - | - | - | 1,462 | - | 1,462 | |||||||||||||||||||||||||||
| Non-controlling interests | - | - | - | 298 | - | - | 298 | 53 | 351 | |||||||||||||||||||||||||||
| Expiration of share options | 159 | (159 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Cost of share-based payment | - | 169 | - | - | - | - | 169 | - | 169 | |||||||||||||||||||||||||||
| Balance at June 30, 2020 | $ | 47,721 | 4,872 | - | 559 | 497 | (54,344 | ) | (695 | ) | 53 | (642 | ) |
The accompanying notes are
an integral part of the interim consolidated financial statements.
STATEMENTS OF CHANGES IN EQUITY
For the year ended December 31, 2020
| Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||
| Share capital and premium | Reserve from share-based payment transactions | Warrants | Transactions with non- controlling interests | Foreign currency translation reserve | Accumulated deficit | Total | Non-controlling interests | Total equity | ||||||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2020 | $ | 45,636 | $ | 4,862 | $ | 464 | $ | 261 | $ | 497 | $ | (51,706 | ) | $ | 14 | $ | - | $ | 14 | |||||||||||||||||
| Income (loss) | - | - | - | (3,482 | ) | (3,482 | ) | (53 | ) | (3,535 | ) | |||||||||||||||||||||||||
| Warrants reclassification | (464 | ) | (464 | ) | (464 | ) | ||||||||||||||||||||||||||||||
| Issue of share capital, net of issue expenses (1) | 2,763 | - | 2,207 | - | - | - | 4,970 | - | 4,970 | |||||||||||||||||||||||||||
| Conversion of convertible debentures | 3 | - | - | - | - | - | 3 | - | 3 | |||||||||||||||||||||||||||
| Non-controlling interests | - | - | - | 298 | - | - | 298 | 53 | 351 | |||||||||||||||||||||||||||
| Expiration of share options | 638 | (638 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Cost of share-based payment | - | 91 | - | - | - | - | 91 | - | 91 | |||||||||||||||||||||||||||
| Balance at December 31, 2020 | $ | 49,040 | 4,315 | 2,207 | 559 | 497 | (55,188 | ) | 1,430 | - | 1,430 |
The accompanying notes are an integral part of
the interim consolidated financial statements.
STATEMENTS OF CASH FLOWS
| Six months ended June 30, | Year Ended December 31, | |||||||||||
| 2021 | 2020 | 2020 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| Cash flows from operating activities: | ||||||||||||
| Loss | $ | (2,650 | ) | $ | (2,638 | ) | $ | (3,535 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Adjustments to the profit or loss items: | ||||||||||||
| Depreciation and amortization | 1 | 33 | 164 | |||||||||
| Cost of share-based payment | 24 | 169 | 91 | |||||||||
| Finance expenses, net | 13 | 710 | (476 | ) | ||||||||
| Impairment of investment in associate | - | - | 795 | |||||||||
| 38 | 912 | 574 | ||||||||||
| Working capital adjustments: | ||||||||||||
| Decrease (increase) in other accounts receivable | (137 | ) | (557 | ) | (519 | ) | ||||||
| Increase (decrease) in trade payables | (202 | ) | 193 | (752 | ) | |||||||
| Decrease in other accounts payable | - | (43 | ) | (75 | ) | |||||||
| (339 | ) | (407 | ) | (1,346 | ) | |||||||
| Net cash used in operating activities | $ | (2,951 | ) | $ | (2,133 | ) | $ | (4,307 | ) |
The accompanying notes are an integral part of
the interim consolidated financial statements.
STATEMENTS OF CASH FLOWS
| Six months ended June 30, | Year Ended December 31, | |||||||||||
| 2021 | 2020 | 2020 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| Cash flows from investing activities: | ||||||||||||
| Investment in restricted bank deposits | (1 | ) | $ | - | $ | 24 | ||||||
| Net cash provided by investing activities | (1 | ) | - | 24 | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from issue of share capital and warrants (net of issuance expenses) (Note 4) | 7,699 | 1,441 | 5,026 | |||||||||
| Payment of issuance expenses related to previous period (b) | - | - | 116 | |||||||||
| Interest paid on lease liability | - | - | (7 | ) | ||||||||
| Repayment of lease liability | - | - | (26 | ) | ||||||||
| Exercise of warrants (Note 4c) | 1,085 | - | - | |||||||||
| Repayment of short-term credit | (188 | ) | (8 | ) | (1,410 | ) | ||||||
| Receipt of short-term credit from others, net | - | (26 | ) | 1,660 | ||||||||
| Net cash provided by financing activities | 8,596 | 1,407 | 5,359 | |||||||||
| Increase (decrease) in cash and cash equivalents | 5,644 | (726 | ) | 1,076 | ||||||||
| Cash and cash equivalents at the beginning of the period | 1,946 | 870 | 870 | |||||||||
| Cash and cash equivalents at the end of the period | 7,590 | $ | 144 | $ | 1,946 |
The accompanying notes are an integral part of
the interim consolidated financial statements.
STATEMENTS OF CASH FLOWS
| Six months ended June 30, | Year Ended December 31, | |||||||||||
| 2021 | 2020 | 2020 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| (a) Significant non-cash transactions: | ||||||||||||
| Investment in associate | $ | - | $ | 742 | $ | - | ||||||
| Exercise of warrants | $ | - | $ | 1,419 | $ | - | ||||||
| Modification of leasing agreement | $ | - | $ | 101 | $ | - |
The accompanying notes are an integral part of
the interim consolidated financial statements.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2:- SIGNIFICANT
Basis of preparation of the interim consolidated financial
The interim consolidated financial
statements have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting".
The significant accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those
followed in the preparation of the 2020 Annual Consolidated Financial Statements.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3:- CONVERTIBLE
General Overview of Valuation Approaches
used in the Valuation:
Fair value is the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
Economic methodology:
The Private Placement Warrant's'
fair value was calculated using the Black-Scholes option pricing model, which takes into account the parameters as disclosed below
for each period valuated, in which a valuation was performed at (i) the issuance date, and (ii) each reporting date with the following
| June 30, 2021 | December 31, 2020 | |||||||
| Dividend yield (%) | 0 | 0 | ||||||
| Expected volatility (%) | 136 | 132 | ||||||
| Risk-free interest rate (%) | 0.87 | 0.38 | ||||||
| Underlying Share Price ($) | 7.98 | 3.625 | ||||||
| Exercise price ($) | 24.5 | 24.5 | ||||||
| Warrants fair value ($) | 5.51 | 2.22 |
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
| June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||||||||||||||
| Authorized | Issued and outstanding | Authorized | Issued and outstanding | Authorized | Issued and outstanding | |||||||||||||||||||
| Number of shares | ||||||||||||||||||||||||
| Ordinary Shares of no par value each | 3,600,000,000 | 317,686,651 | 1,800,000,000 | 145,148,593 | 1,000,000,000 | 563,521,454 |
Description of ADSs:
The Bank of New York Mellon, as depositary,
registers and delivers the Company's ADSs. Each ADS represents one hundred and forty (140) Ordinary Shares.. Each ADS also represents
any other securities, cash or other property which may be held by the depositary.
On September 17, 2020, the Company
convened a special general meeting of its shareholders, whereby the shareholders approved, inter alia, (i) an increase to the Company's
share capital from 500,000,000 Ordinary Shares to 750,000,000 Ordinary Shares; and (ii) a reverse split of the Company's share capital
up to a ratio of 20:1 (the "Reverse Split").
On October 16, 2020, the Company convened
a special general meeting of its shareholders, whereby the shareholders approved an increase to the Company's share capital from
750,000,000 Ordinary Shares to 1,800,000,000 Ordinary Shares.
On October 1, 2020, the Company's
Board resolved that the final ratio for the Reverse Split will be 20:1, which went effective on October 16, 2020. Concurrently with
the Reverse Split, a change to the ratio of its ADSs to its ordinary shares was effective pursuant to which each ADS representing 40 Ordinary
Shares changed to each ADS representing 140 Ordinary Shares.
On March 2, 2021, the Company convened
a special general meeting of its shareholders, whereby the shareholders approved to eliminate the par value of the Ordinary Shares and
an increase to the Company's share capital from 1,800,000,000 Ordinary Shares to 3,600,000,000 ordinary shares.
On July 19, 2021, the Company's
Board resolved that the final ratio for the Reverse Split will be 140:1, which went effective on August 9, 2021. Concurrently with
the Reverse Split, a change to the ratio of its ADSs to its Ordinary Shares was effective pursuant to which each ADS representing 140
ordinary shares changed to each ADS representing 1 Ordinary Share. Since the ADS to ordinary shares ratio is being reduced on the same
proportionate basis as the reverse split, no overall effect on the ADS share price is expected. The number of ADSs held by each holder
is not expected to change, and no action is required by ADS holders.
Issued and outstanding share capital:
| Number of ordinary shares | ||||
| Balance at January 1, 2021 | 145,148,593 | |||
| Cancellation of shares | (182 | ) | ||
| Issuance of share capital - March 2021 Financing Round (Note 4d) | 128,284,240 | |||
| Exercise of November 2020 Warrants (Note 4c) | 30,254,000 | |||
| Exercise of Pre-funded warrants (Note 4d) | 14,000,000 | |||
| Balance at June 30, 2021 | 317,686,651 |
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The Series B warrants are classified
as a financial liability that will be measured at fair value, through profit or loss, as of the issuance date and on any following financial
reporting date (accordingly, issue expenses related to the Series B warrants will be recorded through profit or loss). No consideration
will be left to attribute to the pre-funded warrants, which is an equity instrument.
The valuation of the conversion component
of the Series B warrants was set at fair value, as required in IFRS 9, and in accordance with IFRS 13, and was categorized as Level 3
Warrants are classified as issued warrants in the Company's equity.
During February 2021 through to June
2021, the Company received proceeds of $1,085,000 in respect of the exercise of 216,100 of the November 2020 Warrants and issued 30,254,000
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The Series A Warrant have an exercise