Full Press Release Details
THERAPIX BIOSCIENCES
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 | 11-21 |
THERAPIX BIOSCIENCES
STATEMENTS OF FINANCIAL POSITION
| June 30, | December 31, | |||||||||||||
| 2020 | 2019 | 2019 | ||||||||||||
| Unaudited | Audited | |||||||||||||
| Note | USD in thousands | |||||||||||||
| ASSETS | ||||||||||||||
| CURRENT ASSETS: | ||||||||||||||
| Cash and cash equivalents | $ | 144 | $ | 1,593 | $ | 870 | ||||||||
| Restricted deposit | 34 | 10 | 10 | |||||||||||
| Other accounts receivable | 632 | 246 | 75 | |||||||||||
| 810 | 1,849 | 955 | ||||||||||||
| NON-CURRENT ASSETS: | ||||||||||||||
| Restricted deposit | - | 24 | 24 | |||||||||||
| Investment in associate | 6c | 742 | - | - | ||||||||||
| Property and equipment, net | 6d | 41 | 209 | 175 | ||||||||||
| 783 | 233 | 199 | ||||||||||||
| $ | 1,593 | $ | 2,082 | $ | 1,154 |
The accompanying notes are an integral
part of the interim consolidated financial statements.
THERAPIX BIOSCIENCES
STATEMENTS OF FINANCIAL POSITION
| June 30, | December 31, | |||||||||||||
| 2020 | 2019 | 2019 | ||||||||||||
| Unaudited | Audited | |||||||||||||
| Note | USD in thousands | |||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||
| Credit from others | 6d | $ | 6 | $ | 64 | 67 | ||||||||
| Trade payables | 1,108 | 885 | 864 | |||||||||||
| Other accounts payable | 65 | 138 | 108 | |||||||||||
| Short-term loan | 3b | 61 | - | - | ||||||||||
| Convertible component | 3b | 397 | - | - | ||||||||||
| Convertible debentures | - | 993 | - | |||||||||||
| Conversion component of convertible debentures | - | 142 | - | |||||||||||
| 1,637 | 2,222 | 1,039 | ||||||||||||
| NON- CURRENT LIABILITIES: | ||||||||||||||
| Lease liability | 6d | - | 116 | 94 | ||||||||||
| Warrants | 3b, 4b, 6c | 598 | 486 | 7 | ||||||||||
| 598 | 602 | 101 | ||||||||||||
| EQUITY (DEFICIT) ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | 4 | |||||||||||||
| Share capital | 15,629 | 4,529 | 6,323 | |||||||||||
| Share premium (*) | 32,092 | 38,821 | 39,777 | |||||||||||
| Reserve from share-based payment transactions | 4,872 | 4,691 | 4,862 | |||||||||||
| Foreign currency translation reserve | 497 | 497 | 497 | |||||||||||
| Transactions with non-controlling interests | 6c | 559 | 261 | 261 | ||||||||||
| Accumulated deficit | (54,344 | ) | (49,541 | ) | (51,706 | ) | ||||||||
| (695 | ) | (742 | ) | 14 | ||||||||||
| Non-controlling interests | 6c | 53 | - | - | ||||||||||
| Total equity (deficit) | (642 | ) | (742 | ) | 14 | |||||||||
| $ | 1,593 | $ | 2,082 | $ | 1,154 |
(*) Warrants exercisable into shares as
of December 31, 2019 were reclassified into Share premium.
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, | |||||||||||||
| 2020 | 2019 | 2019 | ||||||||||||
| Unaudited | Audited | |||||||||||||
| Note | USD in thousands | |||||||||||||
| Research and development expenses | 5a | $ | 493 | $ | 499 | $ | 1,639 | |||||||
| General and administrative expenses | 5b | 970 | 1,550 | 2,469 | ||||||||||
| Operating loss | 1,463 | 2,049 | 4,108 | |||||||||||
| Finance income | (29 | ) | (210 | ) | (305 | ) | ||||||||
| Finance expenses | 1,204 | 475 | 676 | |||||||||||
| Loss from continuing operations | 2,638 | 2,314 | 4,479 | |||||||||||
| Loss from discontinued operations, net | - | 207 | 207 | |||||||||||
| Loss | 2,638 | 2,521 | 4,686 | |||||||||||
| Total comprehensive loss | 2,638 | 2,521 | 4,686 | |||||||||||
| Attributable to: | ||||||||||||||
| Equity holders of the Company (continuing operations) | 2,638 | 2,314 | 4,479 | |||||||||||
| Equity holders of the Company (discontinued operations) | - | 315 | 315 | |||||||||||
| Non-controlling interests | - | (108 | ) | (108 | ) | |||||||||
| 2,638 | 2,521 | 4,686 | ||||||||||||
| Basic and diluted net loss per share attributable to equity holders of the Company: | ||||||||||||||
| Loss from continuing operations | 0.01 | 0.02 | 0.03 | |||||||||||
| Loss from discontinued operations | - | 0.002 | 0.002 | |||||||||||
| 0.01 | 0.022 | 0.032 | ||||||||||||
| Basic and diluted net loss per ADS attributable to equity holders of the Company: | ||||||||||||||
| Loss from continuing operations | 0.28 | 0.60 | 1.04 | |||||||||||
| Loss from discontinued operations | - | 0.08 | 0.07 | |||||||||||
| $ | 0.28 | $ | 0.68 | $ | 1.11 |
The accompanying notes are an integral
part of the interim consolidated financial statements.
THERAPIX BIOSCIENCES
STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
For the six months ended June 30, 2020
| Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||
| Share capital | Share premium (*) | Reserve from share- based payment transactions | Transactions with non- controlling interests | Foreign currency translation reserve | Accumulated deficit | Total | Non- controlling interests | Total Equity (deficit) | ||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2020 | $ | 6,323 | $ | 39,777 | $ | 4,862 | $ | 261 | $ | 497 | $ | (51,706 | ) | $ | 14 | $ | - | $ | 14 | |||||||||||||||||
| Loss | (2,638 | ) | (2,638 | ) | - | (2,638 | ) | |||||||||||||||||||||||||||||
| Issue of share capital | 9,306 | (7,844 | ) | - | - | - | - | 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 | $ | 15,629 | $ | 32,092 | $ | 4,872 | $ | 559 | $ | 497 | $ | (54,344 | ) | $ | (695 | ) | $ | 53 | $ | (642 | ) |
The accompanying notes are an integral
part of the interim consolidated financial statements.
THERAPIX BIOSCIENCES
STATEMENTS OF CHANGES IN EQUITY
For the six months ended June 30, 2019
| Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||
| Share capital | Share premium | Reserve from share- based payment transactions | Transactions with non- controlling interests | Foreign currency translation reserve | Accumulated deficit | Total | Non- controlling interests | Total Equity (deficit) | ||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2019 | $ | 3,822 | $ | 38,108 | $ | 4,409 | $ | 261 | $ | 497 | $ | (46,912 | ) | $ | 185 | $ | (108 | ) | $ | 77 | ||||||||||||||||
| Loss | - | - | - | - | - | (2,629 | ) | (2,629 | ) | 108 | (2,521 | ) | ||||||||||||||||||||||||
| Issue of share capital (net of issue expenses) (1) | 628 | 442 | - | - | - | - | 1,070 | - | 1,070 | |||||||||||||||||||||||||||
| Conversion of convertible debentures | 79 | 171 | - | - | - | - | 250 | - | 250 | |||||||||||||||||||||||||||
| Expiration of share options | - | 100 | (100 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Cost of share-based payment | - | - | 382 | - | - | - | 382 | - | 382 | |||||||||||||||||||||||||||
| Balance at June 30, 2019 | $ | 4,529 | $ | 38,821 | $ | 4,691 | $ | 261 | $ | 497 | $ | (49,541 | ) | $ | (742 | ) | $ | - | $ | (742 | ) |
The accompanying notes
are an integral part of the interim consolidated financial statements.
THERAPIX BIOSCIENCES
STATEMENTS OF CHANGES IN EQUITY
For the year ended December 31, 2019
| Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||
| Share capital | Share premium (*) | Reserve from share- based payment transactions | Transactions with non- controlling interests | Foreign currency translation reserve | Accumulated deficit | Total | Non- controlling interests | Total equity | ||||||||||||||||||||||||||||
| Audited | ||||||||||||||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2019 | $ | 3,822 | $ | 38,108 | $ | 4,409 | $ | 261 | $ | 497 | $ | (46,912 | ) | $ | 185 | $ | (108 | ) | $ | 77 | ||||||||||||||||
| Income (loss) | - | - | - | - | - | (4,794 | ) | (4,794 | ) | 108 | (4,686 | ) | ||||||||||||||||||||||||
| Issue of share capital, net of issue expenses (2) | 1,777 | 322 | - | - | - | - | 2,099 | - | 2,099 | |||||||||||||||||||||||||||
| Conversion of convertible debentures | 724 | 783 | - | - | - | - | 1,507 | - | 1,507 | |||||||||||||||||||||||||||
| Registration of the resale of warrants | - | 464 | - | - | - | - | 464 | - | 464 | |||||||||||||||||||||||||||
| Expiration of share options | - | 100 | (100 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Cost of share-based payment | - | - | 553 | - | - | - | 553 | - | 553 | |||||||||||||||||||||||||||
| Balance at December 31, 2019 | $ | 6,323 | $ | 39,777 | $ | 4,862 | $ | 261 | $ | 497 | $ | (51,706 | ) | $ | 14 | $ | - | $ | 14 |
The accompanying notes are an integral
part of the interim consolidated financial statements.
THERAPIX BIOSCIENCES
STATEMENTS OF CASH FLOWS
| Six months ended June 30, | Year Ended December 31, | |||||||||||
| 2020 | 2019 | 2019 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| Cash flows from operating activities: | ||||||||||||
| Loss | $ | (2,638 | ) | $ | (2,521 | ) | $ | (4,686 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Adjustments to the profit or loss items: | ||||||||||||
| Depreciation and amortization | 33 | 144 | 179 | |||||||||
| Impairment loss of equipment | - | 1,223 | 1,223 | |||||||||
| Cost of share-based payment | 169 | 382 | 553 | |||||||||
| Finance expenses, net | 710 | 46 | 156 | |||||||||
| 912 | 1,795 | 2,111 | ||||||||||
| Working capital adjustments: | ||||||||||||
| Decrease (increase) in other accounts receivable | (557 | ) | 158 | 329 | ||||||||
| Increase (decrease) in trade payables | 193 | (743 | ) | (840 | ) | |||||||
| Decrease in other accounts payable | (43 | ) | (706 | ) | (736 | ) | ||||||
| Decrease in related parties | - | (874 | ) | (874 | ) | |||||||
| (407 | ) | (2,165 | ) | (2,121 | ) | |||||||
| Net cash used in operating activities | $ | (2,133 | ) | $ | (2,891 | ) | $ | (4,696 | ) |
The accompanying notes are an integral
part of the interim consolidated financial statements.
THERAPIX BIOSCIENCES
STATEMENTS OF CASH FLOWS
| Six months ended June 30, | Year Ended December 31, | |||||||||||
| 2020 | 2019 | 2019 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| Cash flows from investing activities: | ||||||||||||
| Investment in restricted bank deposits | - | $ | (1 | ) | $ | (1 | ) | |||||
| Purchase of property and equipment | - | - | (1 | ) | ||||||||
| Proceeds from sale of property and equipment | - | 724 | 724 | |||||||||
| Repayment of convertible loans | - | 546 | 546 | |||||||||
| Net cash provided by investing activities | - | 1,269 | 1,268 | |||||||||
| Cash flows from financing activities: | ||||||||||||
| Issue of share capital (net of issue expenses) | 43 | 1,110 | 2,216 | |||||||||
| Issue of warrants and convertible component | 1,398 | 682 | 682 | |||||||||
| Payment of issue expenses related to previous period | - | (30 | ) | (30 | ) | |||||||
| Interest paid on lease liability | (8 | ) | (10 | ) | (17 | ) | ||||||
| Repayment of lease liability | (26 | ) | (22 | ) | (47 | ) | ||||||
| Net cash provided by financing activities | 1,407 | 1,730 | 2,804 | |||||||||
| Exchange rate differences on cash and cash equivalents and restricted deposits in foreign currency | - | - | 9 | |||||||||
| - | - | 9 | ||||||||||
| Increase (decrease) in cash and cash equivalents | (726 | ) | 108 | (615 | ) | |||||||
| Cash and cash equivalents at the beginning of the period | 870 | 1,485 | 1,485 | |||||||||
| Cash and cash equivalents at the end of the period | 144 | $ | 1,593 | $ | 870 |
The accompanying notes are an integral
part of the interim consolidated financial statements.
THERAPIX BIOSCIENCES
STATEMENTS OF CASH FLOWS
| Six months ended June 30, | Year Ended December 31, | ||||||||||||
| 2020 | 2019 | 2019 | |||||||||||
| Unaudited | Audited | ||||||||||||
| USD in thousands | |||||||||||||
| (a) | Significant non-cash transactions: | ||||||||||||
| Conversion of debentures into share capital | $ | - | $ | 250 | $ | 1,507 | |||||||
| Registration of warrants | $ | - | $ | - | $ | 464 | |||||||
| Unpaid issue expenses | $ | - | $ | 40 | $ | 116 | |||||||
| 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.
THERAPIX BIOSCIENCES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The Company was a dual-listed
company, which had its ordinary shares, New Israeli Shekel ("NIS") 0.1 par value each ("Ordinary Shares"),
traded on the Tel-Aviv Stock Exchange Ltd. ("TASE") from December 26, 2005 until it delisted such shares from the TASE
on August 7, 2018, and has had its American Depository Shares ("ADSs") listed on the Nasdaq Capital Market ("Nasdaq")
since March 27, 2017 (see Note 7a, "Subsequent Events After the Reporting Period" for additional information). The
Company completed an initial public offering ("IPO") of its ADSs in the United States on March 27, 2017 and raised
approximately $13.7 million. Since the IPO, the Company has had its ADSs registered with the U.S. Securities and Exchange Commission
As of June 30, 2020, Therapix
has two wholly owned subsidiaries, both of which are companies incorporated under the laws of Israel (the "Subsidiaries"):
(1) Brain Bright Ltd. ("Brain Bright"); and (2) Evero Health Ltd. ("Evero").
Both of the Subsidiaries are
private companies, and as of the date of these financial statements, Brain Bright is an inactive company with no assets or liabilities.
Therapix also owns approximately 27% of Lara Pharm Ltd.'s ("Lara") share capital. Lara is a private company incorporated
under the laws of Israel which, to the best knowledge of the Company, does not engage in any business, and in any event, Therapix
does not have significant influence on Lara since it has no representation in Lara's board of directors. The Company wrote-off
the entire investment in Lara in 2015.
On October 3, 2018 (the "Acquisition
Date"), Therapix obtained control over Therapix Healthcare Resources Inc. ("THR"), a Delaware corporation, which
was established on July 31, 2018, by holding 82.36% of THR's equity. On June 27, 2019, following the finalization of THR's
dissolution, Therapix deconsolidated THR.
THERAPIX BIOSCIENCES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
2:- SIGNIFICANT ACCOUNTING POLICIES
of preparation of the interim consolidated financial statements:
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 2019 Annual Consolidated Financial Statements.
THERAPIX BIOSCIENCES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
3:- CONVERTIBLE LOANS
Valuation process and techniques:
The Company's management
considers the appropriateness of the valuation methods and inputs and may request that alternative valuation methods are applied
to support the valuation arising from the method chosen.
The valuation of the Notes,
warrants and ADSs was set in accordance with International Financial Reporting Standard ("IFRS") 9 and IAS 32, "Financial Instruments: Presentation" ("IAS
32"). IFRS 9 and IAS 32 determine the accepted method in allocating the consideration received from a bundle of securities.
According to the guidelines of IFRS 9 and IAS 32, the allocation is based on the method of the remainder of consideration, when
there is a hierarchy regarding the financial instruments measured at fair value and the financial instruments recognized as the
remainder of consideration.
According to IFRS 9 and IAS
32, the allocation is based on the following hierarchy:
THERAPIX BIOSCIENCES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
3:- CONVERTIBLE LOANS (cont.)