exhibit_99-2.htm

KAMADA LTD.

CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2015

TABLE OF CONTENTS

	Page

Consolidated Balance Sheets	2

Consolidated Statements of Comprehensive Income	3

Consolidated Statements of Changes in Equity	4-5

Consolidated Statements of Cash Flows	6-7

Notes to the Consolidated Financial Statements	8-11

KAMADA LTD.

CONSOLIDATED BALANCE SHEETS

	As of March 31,						As of December 31,
	2015			2014			2014
	Unaudited						Audited
	In thousands
Current Assets
Cash and cash equivalents	$	13,011		$	33,314		$	14,546
Short-term investments		36,693			38,811			37,350
Trade receivables		8,863			12,592			17,514
Other accounts receivables		2,954			3,284			2,359
Inventories		27,435			28,614			25,423

		88,956			116,615			97,192

Property, plant and equipment, net		21,523			21,384			21,769
Other long-term assets		110			262			179

		21,633			21,646			21,948

		110,589			138,261			119,140
Current Liabilities
Short term credit and Current maturities of convertible debentures		7,411			8,678			7,492
Trade payables		13,376			16,321			16,530
Other accounts payables		3,493			3,750			4,045
Deferred revenues		2,799			5,431			2,919

		27,079			34,180			30,986
Non-Current Liabilities
Convertible debentures		-			7,686			-
Employee benefit liabilities, net		739			801			722
Deferred revenues		6,958			7,683			7,015

		7,697			16,170			7,737
Equity
Share capital		9,227			9,201			9,208
Share premium		158,893			157,117			158,417
Conversion option in convertible debentures		1,147			2,217			1,147
Capital reserve due to translation to presentation currency		(3,490	)		(3,490	)		(3,490	)
Capital reserve from hedges		(265	)		87			(116	)
Capital reserve from available for sale financial assets		128			12			10
Capital reserve from share-based payments		9,009			6,266			8,783
Capital reserve from employee benefits		(81	)		(129	)		(81	)
Accumulated deficit		(98,755	)		(83,370	)		(93,461	)
		75,813			87,911			80,417

	$	110,589		$	138,261		$	119,140

The accompanying Notes are an integral part of the Consolidated Financial Statements.

KAMADA LTD.

Consolidated Statements of Comprehensive Income

	As of March 31,						Year ended December 31
	2015			2014			2014
	Unaudited						Audited
	In thousands

Revenues from proprietary products	$	3,173		$	7,421		$	44,389
Revenues from distribution		5,757			5,766			26,676

Total revenues		8,930			13,187			71,065

Cost of revenues from proprietary products		3,295			5,003			32,617
Cost of revenues from distribution		5,243			4,922			23,406

Total cost of revenues		8,538			9,925			56,023

Gross profit		392			3,262			15,042

Research and development expenses		3,643			3,365			16,030
Selling and marketing expenses		799			647			2,898
General and administrative expenses		1,700			1,957			7,593
Operating loss		(5,750	)		(2,707	)		(11,479	)

Financial income		182			243			1,611
Income in respect of currency exchange and translation differences and derivatives instruments, net		513			39			-
Financial expense		(239	)		(674	)		(3,293	)
Loss before taxes on income		(5,294	)		(3,099	)		(13,161	)
Taxes on income		-			23			52

Net loss		(5,294	)		(3,122	)		(13,213	)

Other Comprehensive loss:
Items that may be reclassified to profit or loss in subsequent periods:
Gain on available for sale financial assets		118			39			37
Profit (loss) on cash flow hedges		(221	)		29			(162	)
Net amounts transferred to the statement of profit or loss for cash flow hedges		72			(98	)		(110	)
Items that will not be reclassified to profit or loss in subsequent periods:
Actuarial gain from defined benefit plans		-			-			48
Total comprehensive loss	$	(5,325	)	$	(3,152	)	$	(13,400	)

Loss per share attributable to equity holders of the Company:

Basic loss per share	$	(0.15	)	$	(0.09	)		(0.37	)

Diluted loss per share	$	(0.15	)	$	(0.09	)		(0.37	)

The accompanying Notes are an integral part of the Consolidated Financial Statements

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Share Capital		Share premium		Conversion option in convertible debentures		Capital reserve from available for sale financial assets		Capital reserve due to translation to presentation currency			Capital reserve from hedges			Capital reserve from share-based payments			Capital reserve from employee benefits			Accumulated deficit			Total equity
	Unaudited
	In thousands
Balance as of January 1, 2015	$	9,208	$	158,417	$	1,147	$	10	$	(3,490	)	$	(116	)	$	8,783		$	(81	)	$	(93,461	)	$	80,417
Net loss		-		-		-		-		-			-			-			-			(5,294	)		(5,294	)

Other comprehensive income (loss)		-		-		-		118		-			(149	)		-			-			-			(31	)
Total comprehensive income (loss)		-		-		-		118					(149	)								(5,294	)		(5,325	)
Exercise of options into shares		19		476												(279	)								216
Cost of share-based payment		-		-		-		-		-			-			505			-			-			505
Balance as of March 31, 2015	$	9,227	$	158,893	$	1,147	$	128	$	(3,490	)	$	(265	)	$	9,009		$	(81	)	$	(98,755	)		75,813

	Share Capital			Share premium		Conversion option in convertible debentures			Capital reserve from available for sale financial assets			Capital reserve due to translation to presentation currency			Capital reserve from hedges			Capital reserve from share-based payments			Capital reserve from employee benefits			Accumulated deficit			Total equity
	Unaudited
	In thousands
Balance as of January 1, 2014	$	9,201		$	157,100	$	2,218		$	(27	)	$	(3,490	)	$	156		$	5,189		$	(129	)	$	(80,248	)	$	89,970
Net loss		-			-		-			-			-			-			-			-			(3,122	)		(3,122	)

Other comprehensive income (loss)		-			-		-			39			-			(69	)		-			-			-			(30	)
Total comprehensive income (loss)		-			-		-			39						(69	)								(3,122	)		(3,152	)
Conversion of convertible debentures into shares		(*	)		8		(1	)		-			-			-			-			-			-			7
Forfeiture of options		-			9		-			-			-			-			(9	)		-			-			-
Cost of share-based payment		-			-		-			-			-			-			1,086			-			-			1,086
Balance as of March 31, 2014	$	9,201		$	157,117	$	2,217		$	12		$	(3,490	)	$	87		$	6,266		$	(129	)	$	(83,370	)	$	87,911

(*) Represents an amount lower than $1

The accompanying Notes are an integral part of the Consolidated Financial Statements.

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Share capital			Share premium		Warrants		Conversion option in convertible debentures			Available for sale reserve			Capital reserve due to translation to presentation currency			Capital reserve from hedges			Capital reserve from share-based payments			Capital reserve from employee benefits			Accumulated deficit			Total equity
	In thousands
Balance as of December 31, 2013	$	9,201		$	157,100	$	-	$	2,218		$	(27	)	$	(3,490	)		156		$	5,189		$	(129	)	$	(80,248	)	$	89,970
Net loss		-			-		-		-			-			-			-			-			-			(13,213	)		(13,213	)
Other comprehensive income (loss)		-			-		-		-			37			-			(272	)		-			48			-			(187	)
Total comprehensive income (loss)		-			-		-		-			37			-			(272	)		-			48			(13,213	)		(13,400	)
Exercise of options into shares		7			238		-		-			-			-			-			(157	)		-			-			88
Conversion of convertible debentures into shares		(*	)		9		-		(1	)		-			-			-			-			-			-			8
Expiration of conversion option on convertible debentures		-			1,070		-		(1,070	)		-			-			-			-			-			-			-
Cost of share-based payment		-			-		-		-			-			-			-			3,751			-			-			3,751
Balance as of December 31, 2014	$	9,208		$	158,417	$	-	$	1,147		$	10		$	(3,490	)	$	(116	)	$	8,783		$	(81	)	$	(93,461	)	$	80,417

(*) Represents an amount lower than $1

The accompanying Notes are an integral part of the Consolidated Financial Statements.

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months period Ended March, 31						Year Ended December 31,
	2014			2015			2014
	Unaudited						Audited
	In Thousands
Cash Flows from Operating Activities

Net loss	$	(5,294	)	$	(3,122	)	$	(13,213	)

Adjustments to reconcile loss to net cash used in operating activities:

Adjustments to the profit or loss items:

Depreciation and amortization		771			663			2,788
Finance expenses, net		(447	)		392			1,682
Cost of share-based payment		505			1,086			3,751
Taxes on income		-			23			52
Loss from sale of property and equipment		-			-			(2	)
Change in employee benefit liabilities, net		17			(26	)		(57	)

		846			2,138			8,214
Changes in asset and liability items:

Decrease (increase) in trade receivables		8,418			5,236			(869	)
Increase in other accounts receivables		(829	)		(240	)		(50	)
Increase in inventories		(2,012	)		(6,681	)		(3,490	)
Decrease in deferred expenses		71			559			1,209
Decrease (increase) in trade payables		(2,572	)		2,241			3,261
Decrease in other accounts payables		(659	)		(563	)		(344	)
Decrease in deferred revenues		(177	)		(846	)		(4,026	)

		2,240			(294	)		(4,309	)
Cash paid and received during the period for:
Interest paid		(121	)		(301	)		(1,210	)
Interest received		350			94			758
Taxes paid		(29	)		(60	)		(158	)

		200			(267	)		(610	)

Net cash used in operating activities	$	(2,008	)	$	(1,545	)	$	(9,918	)

The accompanying Notes are an integral part of the Consolidated Financial Statements.

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months period Ended March 31						Year Ended December 31
	2015			2014			2014
	Unaudited						Audited
	In Thousands
Cash Flows from Investing Activities	$	425		$	(23,432	)	$	(23,746	)
Short-term investments		(509	)		(616	)		(3,076	)
Purchase of property and equipment		-			-			3
Proceeds from sale of property and equipment
		(84	)		(24,048	)		(26,819	)
Net cash used in investing activities

Cash Flows from Financing Activities		-			-			-
Exercise of warrants and options into shares		-			-			88
Short term credit from bank and others, net		-			-			(7,728	)
Repayment of convertible debentures
Net cash provided by (used in) financing activities		-			-			(7,640	)
		557			(203	)		(187	)
Exchange differences on balances of cash and cash equivalent
		(1,535	)		(25,796	)		(44,564	)
Decrease in cash and cash equivalents
		14,546			59,110			59,110
Cash and cash equivalents at the beginning of the year
	$	13,011		$	33,314		$	14,546
Cash and cash equivalents at the end of the period

Significant non-cash transactions

Exercise of convertible debentures into shares	$	-		$	7		$	7
Exercise of options into shares	$	216		$	-		$	-

The accompanying Notes are an integral part of the Consolidated Financial Statements.

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1:-

General

These Financial Statements have been prepared in a condensed format as of March 31, 2015 and for the three months then ended ("interim consolidated financial statements").

These financial statements should be read in conjunction with the Company's annual financial statements as of December 31, 2014 and for the year then ended and the accompanying notes ("annual consolidated financial statements").

Note 2:-

Significant Accounting Policies

Basis of preparation of the interim consolidated financial statements:

The 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, "Interim Financial Reporting".

Note 3:-

Operating Segments

General:

The company has two operating segments, as follows:

Proprietary Products	-	Medicine development, manufacture and sale of plasma-derived therapeutics products.

Distribution	-	Distribution of drugs in Israel manufacture by other companies for clinical uses, most of which are produced from plasma or its derivatives products.

Reporting on operating segments:

	Proprietary Products			Distribution		Total
	In thousands
	Unaudited
Three months period ended March 31,2015

Revenues	$	3,173		$	5,757	$	8,930

Gross profit (loss)	$	(122	)	$	514		392

Unallocated corporate expenses							(6,142	)
Finance expenses, net							456

Loss before taxes on income						$	(5,294	)

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3:-

Operating Segments (Cont.)

	Proprietary Products		Distribution		Total
	In thousands
	Unaudited
Three months period Ended March 31,2014

Revenues	$	7,421	$	5,766	$	13,187

Gross profit	$	2,418	$	844		3,262

Unallocated corporate expenses						(5,969	)
Finance expenses, net						(392	)

Loss before taxes on income					$	(3,099	)

	Proprietary Products		Distribution		Total
	In thousands

Year Ended December 31, 2014

Revenues	$	44,389	$	26,676	$	71,065

Gross profit	$	11,772	$	3,270	$	15,042

Unallocated corporate expenses						(26,521	)
Finance expenses, net						(1,682	)

Loss before taxes on income					$	(13,161	)

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4:-

Financial Instruments

Classification of financial instruments by fair value hierarchy

Financial assets measured at fair value

	Level 1		Level 2
	In thousands
March 31, 2015
Marketable securities at fair value through profit or loss:
Equity shares	$	583	$	-
Mutual funds		1,314		-
Exchange traded notes		35		-
Debt securities (corporate and government)		6,685		-
		8,617

Available for sale debt securities (corporate and government)	$	-	$	28,076

	$	8,617	$	28,076
March 31, 2014
Derivatives instruments qualified for hedging	$	-	$	117
Marketable securities at fair value through profit or loss:
Equity shares		1,051		-
Mutual funds		2,290		-
Exchange traded notes		79		-
Debt securities (corporate and government)		8,786		-
		12,206		117

Available for sale debt securities (corporate and government)	$	-	$	26,605

	$	12,206	$	26,722
December 31, 2014
Marketable securities at fair value through profit or loss:
Equity shares	$	587	$	-
Mutual funds		577		-
Exchange traded notes		46		-
Debt securities (corporate and government)		7,610		-

Available for sale debt securities (corporate and government)		-		28,530

	$	8,820	$	28,530