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 | 11-18 |
STATEMENTS OF FINANCIAL POSITION
| June 30, | December 31, | |||||||||||||||
| 2022 | 2021 | 2021 | ||||||||||||||
| Unaudited | Audited | |||||||||||||||
| Note | USD in thousands | |||||||||||||||
| ASSETS | ||||||||||||||||
| CURRENT ASSETS: | ||||||||||||||||
| Cash and cash equivalents | $ | 12,945 | $ | 7,590 | $ | 6,875 | ||||||||||
| Restricted deposit | 40 | 11 | 45 | |||||||||||||
| Other accounts receivable | 699 | 731 | 2,904 | |||||||||||||
| 13,684 | 8,332 | 9,824 | ||||||||||||||
| NON-CURRENT ASSETS: | ||||||||||||||||
| Investment in associate | 3 | 659 | - | - | ||||||||||||
| Property and equipment, net | 79 | 10 | 92 | |||||||||||||
| 738 | 10 | 92 | ||||||||||||||
| $ | 14,422 | $ | 8,342 | $ | 9,916 |
The accompanying notes are an integral part of
the interim consolidated financial statements.
STATEMENTS OF FINANCIAL POSITION
| June 30, | December 31, | |||||||||||||
| 2022 | 2021 | 2021 | ||||||||||||
| Unaudited | Audited | |||||||||||||
| Note | USD in thousands | |||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||
| Trade payables | $ | 874 | $ | 354 | $ | 1,199 | ||||||||
| Other accounts payable | 214 | 34 | 154 | |||||||||||
| Warrants | 4, 5e | 10,252 | 366 | 359 | ||||||||||
| Lease liability | 45 | - | 45 | |||||||||||
| 11,385 | 754 | 1,757 | ||||||||||||
| NON- CURRENT LIABILITIES: | ||||||||||||||
| Lease liability | - | - | 18 | |||||||||||
| EQUITY (DEFICIT) ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | 5 | |||||||||||||
| Share capital and premium | 58,547 | 53,802 | 58,541 | |||||||||||
| Reserve from share-based payment transactions | 4,980 | 4,312 | 4,331 | |||||||||||
| Warrants | 5,190 | 6,256 | 5,190 | |||||||||||
| Foreign currency translation reserve | 497 | 497 | 497 | |||||||||||
| Transactions with non-controlling interests | 559 | 559 | 559 | |||||||||||
| Accumulated deficit | ( 66,736 | ) | ( 57,838 | ) | ( 60,977 | ) | ||||||||
| Total equity (deficit) | 3,037 | 7,588 | 8,141 | |||||||||||
| $ | 14,422 | $ | 8,342 | $ | 9,916 |
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, | |||||||||||||
| 2022 | 2021 | 2021 | ||||||||||||
| Unaudited | Audited | |||||||||||||
| Note | USD in thousands, except per share amounts | |||||||||||||
| Research and development expenses | 6a | $ | 1,474 | $ | 962 | $ | 1,990 | |||||||
| General and administrative expenses | 6b | 3,339 | 1,665 | 3,778 | ||||||||||
| Operating loss | 4,813 | 2,627 | 5,768 | |||||||||||
| Company's share of losses of companies accounted for at equity, net | 41 | - | - | |||||||||||
| Finance expenses | 905 | 23 | 21 | |||||||||||
| Loss from operations | 5,759 | 2,650 | 5,789 | |||||||||||
| Loss | 5,759 | 2,650 | 5,789 | |||||||||||
| Total comprehensive loss | 5,759 | 2,650 | 5,789 | |||||||||||
| Attributable to: | ||||||||||||||
| Equity holders of the Company | 5,759 | 2,650 | 5,789 | |||||||||||
| Basic loss per share attributable to equity holders of the Company: | ||||||||||||||
| Loss from operations | 1.80 | 1.52 | 2.83 | |||||||||||
| Diluted loss per share attributable to equity holders of the Company: | ||||||||||||||
| Loss from operations | 1.80 | 1.52 | 2.83 |
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, 2022
| 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, 2022 | $ | 58,541 | 4,331 | 5,190 | 559 | 497 | ( 60,977 | ) | 8,141 | - | 8,141 | |||||||||||||||||||||||||
| Income (loss) | - | - | - | - | - | ( 5,759 | ) | ( 5,759 | ) | - | ( 5,759 | ) | ||||||||||||||||||||||||
| Expiration of share options | 6 | ( 6 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Cost of share-based payment | - | 655 | - | - | - | - | 655 | - | 655 | |||||||||||||||||||||||||||
| Balance at June 30, 2022 | $ | 58,547 | 4,980 | 5,190 | 559 | 497 | ( 66,736 | ) | 3,037 | - | 3,037 |
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, 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 5d) | 3,365 | - | 4,334 | - | - | - | 7,699 | - | 7,699 | |||||||||||||||||||||||||||
| Exercise of warrants (Note 5c) | 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 year ended December 31, 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) | - | - | - | - | - | ( 5,789 | ) | ( 5,789 | ) | - | ( 5,789 | ) | ||||||||||||||||||||||||
| Exercise of warrants | 6,110 | - | ( 1,352 | ) | - | - | - | 4,758 | - | 4,758 | ||||||||||||||||||||||||||
| Issue of share capital, net of issue expenses (1) | 3,364 | - | 4,335 | - | - | - | 7,699 | - | 7,699 | |||||||||||||||||||||||||||
| Expiration of share options | 27 | ( 27 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Cost of share-based payment | - | 43 | - | - | - | - | 43 | - | 43 | |||||||||||||||||||||||||||
| Balance at December 31, 2021 | $ | 58,541 | 4,331 | 5,190 | 559 | 497 | ( 60,977 | ) | 8,141 | - | 8,141 |
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, | |||||||||||
| 2022 | 2021 | 2021 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| Cash flows from operating activities: | ||||||||||||
| Loss | $ | ( 5,759 | ) | $ | ( 2,650 | ) | $ | ( 5,789 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Adjustments to the profit or loss items: | ||||||||||||
| Depreciation and amortization | 21 | 1 | 33 | |||||||||
| Cost of share-based payment | 655 | 24 | 43 | |||||||||
| Finance expenses, net | 913 | 13 | 9 | |||||||||
| Equity losses in investment in associate | 41 | - | - | |||||||||
| 1,630 | 38 | 85 | ||||||||||
| Working capital adjustments: | ||||||||||||
| Decrease (increase) in other accounts receivable | 2,205 | ( 137 | ) | 170 | ||||||||
| Increase (decrease) in trade payables | ( 324 | ) | ( 202 | ) | 353 | |||||||
| Decrease in other accounts payable | 60 | - | 120 | |||||||||
| 1,941 | ( 339 | ) | 643 | |||||||||
| Net cash used in operating activities | $ | ( 2,188 | ) | $ | ( 2,951 | ) | $ | ( 5,061 | ) |
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, | |||||||||||
| 2022 | 2021 | 2021 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| Cash flows from investing activities: | ||||||||||||
| Investment (withdrawal) in restricted bank deposits | ( 8 | ) | $ | ( 1 | ) | $ | ( 35 | ) | ||||
| Investment in associate | ( 700 | ) | - | ( 35 | ) | |||||||
| Net cash provided by investing activities | ( 708 | ) | ( 1 | ) | ( 70 | ) | ||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from issue of share capital and warrants (net of issuance expenses) (Note 5) | 9,005 | 7,699 | 7,699 | |||||||||
| Repayment of lease liability | ( 39 | ) | - | ( 19 | ) | |||||||
| Exercise of warrants (Note 5c) | - | 1,085 | 2,568 | |||||||||
| Repayment of short-term credit | - | ( 188 | ) | ( 188 | ) | |||||||
| Net cash provided by financing activities | 8,966 | 8,596 | 10,060 | |||||||||
| Increase (decrease) in cash and cash equivalents | 6,070 | 5,644 | 4,929 | |||||||||
| Cash and cash equivalents at the beginning of the period | 6,875 | 1,946 | 1,946 | |||||||||
| Cash and cash equivalents at the end of the period | 12,945 | $ | 7,590 | $ | 6,875 |
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, | |||||||||||
| 2022 | 2021 | 2021 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| (a) Significant non-cash transactions: | ||||||||||||
| Right-of-use asset recognized with corresponding lease liability | $ | - | $ | - | $ | 78 | ||||||
| Registration of warrants | $ | - | $ | - | $ | 2,480 | ||||||
| Unpaid issue expenses | $ | - | $ | - | $ | 290 |
The accompanying notes are an integral part of
the interim consolidated financial statements.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS (USD in thousands, except per share and per unit amounts)
INTERIM CONSOLIDATED FINANCIAL STATEMENTS (USD in thousands, except per share and per unit amounts)
NOTE 2:- SIGNIFICANT
Unaudited Interim Financial Information
The Company's unaudited condensed
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 2021 Annual Consolidated Financial Statements. Accordingly, these condensed
consolidated financial statements should be read in conjunction with the 2021 Annual Consolidated Financial Statements. The results for
any interim period are not necessarily indicative of results for any future period.
The unaudited condensed consolidated
financial statements have been prepared on the same basis as the audited financial statements. In the opinion of the Company's management,
the accompanying unaudited condensed consolidated financial statements contain all adjustments that are necessary to present fairly the
Company's financial position and results of operations for the interim periods presented. The results for the six month period ended
June 30, 2022, are not necessarily indicative of the results for the year ending December 31, 2022, or for any future period.
As of June 30, 2022, there have been
no material changes in the Company's significant accounting policies from those that were disclosed in the 2021 Annual Consolidated
Financial Statements.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS (USD in thousands, except per share and per unit amounts)
On March 10, 2022, the Company entered
into a Founders and Investment Agreement with Dr. Alon Silberman, or the MitoCareX Agreement. Pursuant to the MitoCareX Agreement, the
Company invested an initial amount of $700, and agreed to invest over the next two years, an additional $1,000, subject to the achievement
of certain pre-determined milestones as agreed upon in the MitoCareX Agreement, for up to a 50.01% ownership in MitoCare X Bio Ltd. ("MitoCareX").
MitoCareX will focus on the discovery and development of potential drugs for cancers and other life-threatening conditions. The MitoCareX
Agreement also contains customary representations, warranties, covenants and indemnification provisions. On March 31, 2022, the closing
conditions were met and the Company paid the initial investment amount of $700 to MitoCareX. As of June 30, 2022, the Company owns 29%
of the outstanding shares of Mitocare X.
During the six months ended June 30,
2022, the Company recorded equity losses from the investment in MitoCareX in the amount of $41.
NOTE 4:- CONVERTIBLE
On March 19, 2020, the Company entered
into a securities purchase agreement with Dekel Pharmaceutical Ltd. ("Dekel") pursuant to which Dekel agreed to invest in
the Company through a private placement transaction (the "Private Placement"). At the time of the Private Placement, Dekel
was considered a related party of the Company; however, it is no longer a related party of the Company. In connection with the Private
Placement, Dekel received convertible promissory notes (the "Notes"), with an aggregate original principal amount of approximately
$350, at an aggregate purchase price of $315 to be paid in several tranches spread across a twelve-month period. In addition, the Company
issued a warrant to purchase up to 314,285 ordinary shares of the Company (the "Private Placement Warrant") and 40,000 ordinary
shares. The initial tranche of the Private Placement was for a principal amount of $220 at a purchase price of $198.The Private Placement
Warrant is exercisable at any time on or after the actual closing date and on or prior to the close of business on the five-year anniversary
of the date of issuance, at an initial exercise price of $0.35 per ordinary share, subject to adjustment.
General Overview of Valuation Approaches
used in the Valuation:
Fair value is the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
Economic methodology:
The Private Placement Warrant's'
fair value was calculated using the Black-Scholes option pricing model, which takes into account the parameters as disclosed below
for each period valuated, in which a valuation was performed at (i) the issuance date, and (ii) each reporting date with the following
| June 30, 2022 | December 31, 2021 | |||||||
| Dividend yield (%) | 0 | 0 | ||||||
| Expected volatility (%) | 159 | 148 | ||||||
| Risk-free interest rate (%) | 3.00 | 0.87 | ||||||
| Underlying share price ($) | 2.13 | 6.23 | ||||||
| Exercise price ($) | 24.50 | 24.50 | ||||||
| Warrants fair value ($) | 1.11 | 4.15 |
INTERIM CONSOLIDATED FINANCIAL STATEMENTS (USD in thousands, except per share and per unit amounts)
| June 30, 2022 | December 31, 2021 | June 30, 2021 | ||||||||||||||||||||||
| Authorized | Issued and outstanding | Authorized | Issued and outstanding | Authorized | Issued and outstanding | |||||||||||||||||||
| Number of shares | ||||||||||||||||||||||||
| Ordinary Shares of no par value each | 25,714,285 | 3,526,740 | 25,714,285 | 3,091,740 | 25,714,285 | 2,269,190 |
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.
July 19, 2021, the Company convened a special general meeting of its shareholders, whereby the shareholders approved a reverse split of
the Company's share capital by a ratio of 140:1 (the "Second Reverse Split").
On July 30, 2021, the Company's
Board resolved that the final ratio for the Second Reverse Split will be 140:1, which went effective on August 9, 2021. Concurrently
with the Second Reverse Split, a change to the ratio of the Company's ADSs to its ordinary shares was effected from each ADS representing