0001178913-18-000709.txt : 20180228 0001178913-18-000709.hdr.sgml : 20180228 20180228070021 ACCESSION NUMBER: 0001178913-18-000709 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20180228 FILED AS OF DATE: 20180228 DATE AS OF CHANGE: 20180228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Evogene Ltd. CENTRAL INDEX KEY: 0001574565 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE CHEMICALS [2870] IRS NUMBER: 000000000 STATE OF INCORPORATION: L3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36187 FILM NUMBER: 18648033 BUSINESS ADDRESS: STREET 1: 13 GAD FEINSTEIN STREET STREET 2: PARK REHOVOT P.O.B 2100 CITY: REHOVOT STATE: L3 ZIP: 76121 BUSINESS PHONE: 97289311900 MAIL ADDRESS: STREET 1: 13 GAD FEINSTEIN STREET STREET 2: PARK REHOVOT P.O.B 2100 CITY: REHOVOT STATE: L3 ZIP: 76121 6-K 1 zk1821301.htm 6-K


UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of February 2018
 
Commission File Number: 001-36187

EVOGENE LTD.
  (Translation of Registrant’s Name into English)
 
13 Gad Feinstein Street
Park Rehovot P.O.B 2100
Rehovot 7612002 Israel
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F x Form 40-F
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
 


CONTENTS
 
Attached hereto and incorporated by reference herein are the following exhibits:
 
99.1      CEO Letter to Shareholders.
 
99.2      Press Release: Evogene Reports Fourth Quarter and Full Year 2017 Financial Results.
 
2

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 



Date: February 28, 2018
 
EVOGENE  LTD.
(Registrant)

By: /s/ Alex Taskar
——————————————
Alex Taskar
Chief Financial Officer

3


 
EXHIBIT INDEX
 
EXHIBIT NO.
DESCRIPTION
 
 
4

 
EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

 
Exhibit 99.1

To our Shareholders,
 
The primary purpose of this letter is to put Evogene's achievements and progress during the past few years in perspective by providing an overall strategy and roadmap for how we are planning to leverage our competitive advantage - our Computational Predictive Biology (CPB) platform to meet multiple unmet – and substantial – market needs to create significant shareholder value.
 
As our long-term shareholders are aware, up until our US IPO in 2013, most of Evogene’s efforts were focused on pursuing long-term discovery programs for row crop seed traits in collaboration with world leading seed companies and on developing, expanding and enhancing the CPB platform. These multiple collaborations resulted in over 1000 Evogene gene discoveries being transferred to our partners under milestone and royalty bearing agreements, and in the establishment, and widespread industry recognition of Evogene’s CPB platform as a unique, powerful and broadly applicable predictive discovery capability.
 
Following our IPO, while the Ag industry focused on mergers and acquisitions, Evogene continued to invest and extend its technological capabilities, including the integration of key downstream product development supporting technologies. In addition we significantly broadened the Company’s commercial reach to additional fields in the Ag world, such as Ag-Chemicals and Ag-Biologicals. In each area we increased our focus on shorter term product development activities, both in collaborations and internally funded product development programs.  In all of these efforts, the unique capabilities of our CPB platform allowed us to quickly demonstrate significant progress as we addressed key roadblocks to next generation products.
 
All of these activities led to 2017 being an important inflection point in our Company’s development as we began to see the fruits of these efforts in the form of robust product pipelines in each of our focus areas in agriculture.
 
To continue and accelerate our commercialization efforts, at the beginning of 2018 our company was re-organized into market segment oriented divisions, Ag-Seeds, Ag-Biologicals and Ag-Chemicals, and subsidiaries – Evofuel and Biomica, with the CPB platform at Evogene's core. Each of these divisions/subsidiaries is now operating under the direction of its own general manager and with its own business development staff. It is my goal for this re-organization to begin to establish each of Evogene's divisions and subsidiaries as full stand-alone units targeting separate and distinct markets, and we are already seeing the advantages of our new structure as we aggressively pursue both internal programs and collaborations.
 
In order to complete the progression into full stand-alone units, I would like to see in 2018 the general manager and their team of each division/subsidiary continue to push its assets along the product pipeline towards commercialization as well as form collaborations with industry leaders. This stand-alone structure, while making product development more efficient, should also make the individual value of each division clearer as each has comparable tier companies.
 

It is important to recognize the value of the CPB as the technological enabler of our division's and subsidiaries' pipelines, while those are responsible for advancing their business in each respective market utilizing it. CPB is an evolving technological platform with its robustness and predictive capabilities continually enhanced both by the input of additional data and by new computational tools. This has led to the strengthening of our competitive advantage as the years go by, allowing us to initiate activities with a head-start. In each of our market segments there are independent companies focusing solely on that segment, but of course, without the benefit of our CPB capabilities. We are planning to continue to invest in the CPB platform in the future, further enhancing our technological platform's advantage.
 
Within the framework of the above strategy and roadmap, we were very pleased to report important corporate-wide progress during the past year, including:
 
In Ag-Seeds Division – led by Dr. Arnon Heyman, VP & GM Ag-Seeds. The main focus of this division is improved seed traits, for yield and environmental stress improvement, disease resistance and insect control, through the use of gene transformation and more recently genome editing.
 
In the area of yield and environmental stress, we have long-term collaborations with Monsanto as well as other industry leaders, with over 1000 genes nominated to Monsanto’s corn and soy product pipelines.  With respect to disease resistance, last year we saw significant progress in both our Fusarium collaboration with Monsanto and our Black Sigatoka resistant banana collaboration with Rahan-Meristem. In our insect control segment, several internal programs based on novel non-BT toxins were recently advanced to Phase I.
 
In addition, we have incorporated genome editing technologies to utilize the substantial proprietary knowledge obtained by Evogene during its past trait discovery efforts. Genome editing technologies are expected by the industry to improve market reach and shorten time to market.
 
In Ag-Biologicals Division – led by Mr. Ido Dor, EVP and GM Ag-Biologicals. This division focuses on the development of microbial-based yield improvement and pest control products. The Ag-Biologicals market is a rapidly growing segment within the Ag industry with a more favorable regulatory landscape.
 
During 2017 we entered a new collaboration with DuPont-Pioneer for the development of bio-stimulants in corn. Additionally, we have internal programs for bio-stimulants in wheat and bio-pesticides programs in other crops.
 
During the past few years we significantly strengthened our infrastructure in this division with the incorporation of fermentation and formulation technologies dedicated to downstream product development. (A recent presentation of the division with in-depth explanation of its activities is available on our website: www.evogene.com).
 

In Ag-Chemicals Division – led by Mr. Eran Kosover, EVP & GM Ag-Chemicals. This division focuses on the development of novel herbicides and insecticides, utilizing a unique biology driven chemistry approach.  We see great potential in our initial area of focus, herbicides, as a novel MoA (Mode-of-Action) herbicide has not been introduced to market in decades, and we believe our recent  discoveries present an opportunity in that direction. Our recently established area of focus, insecticides, that was only initiated during 2017 also shows promising progress and we believe has significant potential.
 
The division has an ongoing herbicide collaboration with BASF and crop-enhancers collaboration with ICL, as well as a robust internal novel herbicide pipeline. Likewise we have an insecticide pipeline focusing on novel SoA (Sites-of-Action) on key nerve and muscle targets.
 
Our CPB platform also has the potential to optimize known active chemical ingredients of currently commercial herbicides and insecticides for the improvement of their attributes, representing an opportunity for the creation of a shorter term product pipeline.
 
In Evofuel Ltd (subsidiary) – led by Mr. Assaf Dotan, CEO Evofuel. This subsidiary is focused on the commercialization of castor seeds for existing uses of its very high priced and unique oil. A key achievement during 2017 was a breakthrough in terms of mechanical harvesting capabilities, which have been a major bottleneck in the commercialization of castor seeds.  Additional field testing with Evofuel castor varieties is planned for 2018 in Mexico, Argentina, Brazil and Dominican Republic.
 
In Biomica Ltd (subsidiary) – led by Dr. Elran Haber, CEO, Biomica and with the scientific direction of Prof. Yehdua Ringel, Biomica CSO, Chief Division of Gastroenterology and Hepatology at Meir Medical Center, Israel.  This recently formed subsidiary focuses on the human microbiome therapeutics and represents our first activity based on leveraging the use of the CPB platform in the area of human health.  We are enthusiastic about our entrance into this segment. The CPB platform is uniquely designed to handle an enormous number of microbes, and Evogene has past microbial research knowhow from our Ag-Biologicals Division efforts. Given the “head-start” provided by these existing capabilities we look forward to providing further information on Biomica’s progress during the current year.
 
Conclusion
 
I would like to conclude this letter by thanking all of the shareholders for their continued support of Evogene. We greatly appreciate the trust you have placed in us and look forward to reporting our continuing progress during the year.
 
Sincerely,
 
Ofer Haviv
 
President and Chief Executive Officer
 
 

EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2

 
Exhibit 99.2
 
 
Evogene Reports Fourth Quarter and Full Year 2017 Financial Results
 
Conference call and webcast, today at 9:00 am Eastern Time

Rehovot, Israel – February 28, 2018 – Evogene Ltd. (NASDAQ, TASE: EVGN), a leading biotechnology company developing novel products for life science markets through the use of a unique Computational Predictive Biology (CPB) platform, announced today its financial results for the fourth quarter and full year ending December 31, 2017.

Ofer Haviv, Evogene's President and CEO, stated: “2017 was an important inflection point in our Company’s development as we began to see the initial fruits of our pioneering research and development efforts over the past few years.  By year end, we had established robust product pipelines with strong industry alliances in each of our Agricultural divisions- Ag-Seeds, Ag-Biologicals and Ag-Chemicals. In addition, we initiated our first entry into human therapeutics with the establishment of our subsidiary Biomica, alongside our existing subsidiary - Evofuel.

“The next step in our corporate strategy and roadmap is to further develop each of these current market focused activities into “stand-alone” units, including their own R&D teams which have full access to utilize the CPB infrastructure for their market area.  This led us to establish a new corporate structure being implemented earlier this year, with the result that each of our three agriculture divisions and our two subsidiaries is now operating under the direction of its own general manager and business development staff.

“We are already seeing the advantages of this new structure as we aggressively pursue both internal programs and collaborations in these separate and distinct market areas. In addition, this stand-alone presentation should also make the individual value of each division – and therefore Evogene as a whole - clearer as each has comparable tier companies focusing in that market area.

“In order to accelerate the progression into full stand-alone units, in 2018 I would like to see each general manager and his team continue to aggressively develop their product pipeline towards commercialization as well as form additional collaborations with industry leaders. We look forward to reporting our continuing progress during 2018.”
 
More information about the above is provided in a CEO Letter to Shareholders issued today which can be found on our website.
 

Key Evogene highlights for 2017 included:
 
Ag-Seeds Division:
 
·
Yield and environmental stress Collaboration with Monsanto:  Evogene has successfully completed the gene discovery phase, and the collaboration is now focused on progressing selected gene candidates through additional testing in Monsanto’s product development pipeline in corn and soy.
 
·
Disease Resistance Collaboration with Monsanto: An important milestone was achieved in our Fusarium collaboration with Monsanto, with Evogene genes showing resistance to Fusarium in model plants. The top prioritized genes are advancing to tests in Monsanto’s corn pipeline.
 
·
Collaboration with Rahan Meristem: The collaboration achieved positive results in 2nd year field trials for Black Sigatoka resistant bananas, which are now being leveraged through genome editing.
 
Ag-Biologicals Division:
 
·
Bio-Stimulant collaboration with DuPont-Pioneer: Evogene entered a collaboration with DuPont-Pioneer to bring to market, in a broad acre approach, bio-stimulant coated corn seeds. This collaboration is based on the achievements of an internal product program for bio-stimulants. The next step in the collaboration will be field tests undertaken by DuPont-Pioneer.
 
·
In January 2018, Evogene announced positive results in a second year field trial conducted by Evogene in 2017. The tested bio-stimulant seed treatments demonstrated up to 20% increases in corn yield under moderate drought conditions.
 
Ag-Chemicals Division:
 
·
Novel herbicide collaboration with BASF: The collaboration is progressing according to plan.
 
·
Internal novel Mode-of-Action herbicide program: Evogene continued to integrate product development criteria to optimize 10 validated chemical compounds, computationally predicted to inhibit 8 Evogene discovered herbicidal protein targets. In February 2018, Evogene announced an important step in the advancement of this program: positive results with multiple ‘families’ of Evogene predicted chemical compounds demonstrating improved herbicidal effectiveness in lab and greenhouse experiments.
 
·
Initiation of internal novel insecticides product program focusing on key nerve & muscle targets.
 

 
Evofuel (wholly owned subsidiary) - focused on development and commercialization of castor seeds:
 
·
Evofuel together with its partner achieved a breakthrough in terms of mechanical harvesting capabilities, which has been a major bottleneck in the commercialization of castor seeds.
 
Biomica (subsidiary) - focused on the discovery and development of human microbiome-based therapeutics:
 
·
During 2017 Biomica was established by Evogene together with co-founder Prof. Yehuda Ringel, Biomica CSO, Chief Division of Gastroenterology and Hepatology at Meir Medical Center, Israel.
 
·
In February 2018, Evogene announced the appointment of Dr. Elran Haber as CEO of Biomica.
 
Financial results for the period ending December 31, 2017
 
Cash Position:  As of December 31, 2017, the Company had $71.8 million in cash, short-term bank deposits and marketable securities, representing a net cash usage of $4.1 million for the fourth quarter and $16.4 million for full year ending December 31, 2017. The Company does not have bank debts.
 
Assuming the currently expected course of business and no new revenue sources from existing or new collaborations, in 2018 Evogene expects net cash usage of $14 to $16 million.

Revenues primarily consist of research and development payments, reflecting R&D cost reimbursement under certain of our collaboration agreements. The majority of these agreements also provide for development milestone payments and royalties or other forms of revenue sharing from successfully developed products.
 
Revenues for the full year of 2017 were $3.4 million, in comparison to $6.5 million in the full year of 2016. Revenues for the fourth quarter of 2017 were $0.7 million, in comparison to revenues of $1.2 million for the fourth quarter in 2016. The decline in revenues reflects the net decrease in research and development cost reimbursement, in accordance with the work plans under Evogene's various collaboration agreements. This decline is mainly due to the advancement of our collaboration agreement with Monsanto, from gene discovery to pre-development efforts, resulting in reduction of activity scope. Looking forward, we expect this revenue trend to continue.
 

During the full year of 2017 we saw a negative impact on our expenses due to the depreciation of the USD in comparison to the Israeli Shekel. Our expenses, mostly salaries, are denominated in Israeli Shekels while our reporting currency is USD.
 
Cost of revenues mainly consist of collaboration related R&D expenses. Cost of revenues for the full year of 2017 were $2.8 million in comparison to $5.6 million in the full year of 2016. Cost of revenues for the fourth quarter of 2017 were $0.6 million, in comparison to $1.1 million in the fourth quarter of 2016. The decrease related primarily to the decrease in revenues from R&D cost reimbursement for such periods.
 
R&D expenses for the full year of 2017 were $17.0 million in comparison to $16.4 million in the full year of 2016. R&D expenses for the fourth quarter of 2017 remained stable at $4.7 million in comparison to in the fourth quarter in 2016.
 
Operating loss for the full year of 2017 was $21.9 million, in comparison to an operating loss of $21.1 million for the full year of 2016. Operating loss for the fourth quarter of 2017 was $6.0 million in comparison to $6.2 million in the fourth quarter in 2016. The increase in operating loss for the full year was mainly due to the decrease in revenues and an increase in R&D expenses.
 
The net financing income for the full year of 2017 was $1.1 million in comparison to $1.5 million in the corresponding period. This decrease is due to relatively high capital gains derived mainly from the company's marketable securities in the first half of 2016.
 
Net loss for the full year of 2017 was $20.8 million in comparison to $19.6 million in the full year of 2016. The increase in the net loss was primarily due to the decrease in revenues, an increase in R&D expenses and the decrease in net financing income.
 
Net loss for the fourth quarter of 2017 was $6.2 million compared to the net loss of $6.6 million in the comparable quarter in 2016, the decrease in loss was due to a decrease in expenses and a decrease in net financing expenses.


Conference Call & Webcast Details:

Evogene management will host a conference call to discuss the results at 09:00 AM Eastern time, 16:00 Israel time. To access the conference call, please dial 1-888-668-9141 toll free from the United States, or +972-3-918-0610 internationally. Access to the call will also be available via live webcast through the Company’s website at www.evogene.com.

A replay of the conference call will be available approximately three hours following the completion of the call. To access the replay, please dial 1-888-326-9310 toll free from the United States, or +972-3-925-5901 internationally. The replay will be accessible through February 28, 2018, and an archive of the webcast will be available on the Company’s website through March 9, 2018.

About Evogene Ltd.:
Evogene (NASDAQ, TASE: EVGN) is a leading biotechnology company developing novel products for major life science markets through the use of a unique predictive biology platform incorporating deep scientific understandings and advanced computational technologies. This platform is utilized by the Company to discover and develop innovative ag-chemical, ag-biological and ag-seed products (GM and non GM), and by two subsidiaries; Evofuel, focused on castor seeds, and Biomica, focused on human microbiome therapeutics. Through its collaborations with world-leading agricultural companies such as BASF, Bayer, DuPont, Monsanto and Syngenta, Evogene has licensed genes, small molecules and microbes to partners under milestone and royalty bearing agreements. For more information, please visit www.evogene.com

Forward Looking Statements:
This press release contains "forward-looking statements" relating to future events. These statements may be identified by words such as "may", "could", “expects”, "intends", “anticipates”, “plans”, “believes”, “scheduled”, “estimates” or words of similar meaning. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance or achievements of Evogene may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which beyond Evogene's control, including, without limitation, those risk factors contained in Evogene’s reports filed with the appropriate securities authority. Evogene disclaims any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections and assumptions.

Contact:
Nir Zalik
IR/PR Manager
E: IR@evogene.com
T: (+972)-8-931-1963

US Investor Relations
Vivian Cervantes
PCG Advisory
E: vivian@pcgadvisory.com
T: 646-863-6274


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands (except share and per share data)

   
December 31,
 
   
2017
   
2016
 
   
Unaudited
   
Audited
 
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
3,435
   
$
3,236
 
Restricted cash
   
47
     
47
 
Marketable securities
   
59,940
     
71,738
 
Short-term bank deposits
   
8,380
     
13,137
 
Trade receivables
   
132
     
169
 
Other receivables
   
857
     
1,163
 
                 
     
72,791
     
89,490
 
LONG-TERM ASSETS:
               
Long-term deposits
   
19
     
13
 
Property, plant and equipment, net
   
4,792
     
6,483
 
                 
     
4,811
     
6,496
 
                 
   
$
77,602
   
$
95,986
 
CURRENT LIABILITIES:
               
Trade payables
 
$
1,110
   
$
1,330
 
Other payables
   
2,934
     
2,803
 
Liabilities in respect of government grants
   
104
     
125
 
Deferred revenues and other advances
   
516
     
967
 
                 
     
4,664
     
5,225
 
LONG-TERM LIABILITIES:
               
Liabilities in respect of government grants
   
3,438
     
3,303
 
Deferred revenues and other advances
   
89
     
138
 
Severance pay liability, net
   
33
     
31
 
                 
     
3,560
     
3,472
 
SHAREHOLDERS' EQUITY:
               
Ordinary shares of NIS 0.02 par value:
Authorized − 150,000,000 ordinary shares; Issued and outstanding –25,750,547 and 25,480,809 shares at
December 31, 2017 and 2016, respectively
   
142
     
141
 
Share premium and other capital reserve
   
186,268
     
183,342
 
Accumulated deficit
   
(117,032
)
   
(96,194
)
                 
     
69,378
     
87,289
 
                 
   
$
77,602
   
$
95,986
 


CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
U.S. dollars in thousands (except share and per share data)

   
Year ended
December 31,
   
Three months ended
December 31,
 
   
2017
   
2016
   
2017
   
2016
 
   
Unaudited
   
Audited
   
Unaudited
 
                         
Revenues
 
$
3,381
   
$
6,540
   
$
734
   
$
1,180
 
Cost of revenues
   
2,845
     
5,639
     
634
     
1,131
 
                                 
Gross profit
   
536
     
901
     
100
     
49
 
                                 
Operating expenses:
                               
                                 
Research and development, net
   
16,987
     
16,405
     
4,668
     
4,735
 
Business development
   
1,686
     
1,696
     
422
     
471
 
General and administrative
   
3,810
     
3,889
     
1,029
     
995
 
                                 
Total operating expenses
   
22,483
     
21,990
     
6,119
     
6,201
 
                                 
Operating loss
   
(21,947
)
   
(21,089
)
   
(6,019
)
   
(6,152
)
                                 
Financing income
   
2,125
     
2,424
     
356
     
138
 
Financing expenses
   
(1,005
)
   
(891
)
   
(561
)
   
(614
)
                                 
Loss before taxes on income
   
(20,827
)
   
(19,556
)
   
(6,224
)
   
(6,628
)
Taxes on income
   
11
     
36
     
-
     
15
 
                                 
Net loss
 
$
(20,838
)
 
$
(19,592
)
 
$
(6,224
)
 
$
(6,643
)
                                 
Basic and diluted loss per share
 
$
(0.81
)
 
$
(0.77
)
 
$
(0.24
)
 
$
(0.26
)


CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

   
Year ended
December 31,
   
Three months ended
December 31,
 
   
2017
   
2016
   
2017
   
2016
 
   
Unaudited
   
Audited
   
Unaudited
 
    Cash flows from operating activities
                       
                         
Net loss
 
$
(20,838
)
 
$
(19,592
)
 
$
(6,224
)
 
$
(6,643
)
                                 
Adjustments to reconcile net loss to net cash used in operating activities:
                               
                                 
    Adjustments to the profit or loss items:
                               
                                 
Depreciation
   
2,145
     
2,279
     
521
     
516
 
Share-based compensation
   
2,244
     
2,943
     
596
     
607
 
Net financing expense (income)
   
(1,454
)
   
(1,688
)
   
125
     
480
 
Loss from sale of property, plant and equipment
   
-
     
39
     
-
     
22
 
Taxes on income
   
11
     
36
     
-
     
15
 
                                 
     
2,946
     
3,609
     
1,242
     
1,640
 
                                 
Changes in asset and liability items:
                               
                                 
Decrease (increase) in trade receivables
   
37
     
2,506
     
836
     
(69
)
Decrease (increase) in other receivables
   
221
     
(100
)
   
44
     
567
 
Decrease (increase) in long-term deposits
   
(6
)
   
9
     
(4
)
   
1
 
Increase (decrease) in trade payables
   
(86
)
   
(215
)
   
295
     
144
 
Increase (decrease) in other payables
   
136
     
(303
)
   
258
     
112
 
Increase in severance pay liability, net
   
2
     
5
     
1
     
1
 
Decrease in deferred revenues and other advances
   
(500
)
   
(81
)
   
(505
)
   
(503
)
Increase in liabilities in respect of government grants
   
-
     
115
     
-
     
-
 
                                 
     
(196
)
   
1,936
     
925
     
253
 
                                 
Cash received (paid) during the period for:
                               
                                 
Interest received
   
2,173
     
2,360
     
491
     
522
 
Taxes paid
   
(14
)
   
(6
)
   
-
     
(4
)
                                 
Net cash used in operating activities
   
(15,929
)
   
(11,693
)
   
(3,566
)
   
(4,232
)


CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

   
Year ended
December 31,
   
Three months ended
December 31,
 
   
2017
   
2016
   
2017
   
2016
 
   
Unaudited
   
Audited
   
Unaudited
 
Cash flows from investing activities
                       
                         
Purchase of property, plant and equipment
 
$
(590
)
 
$
(808
)
 
$
(148
)
 
$
(97
)
Proceeds from sale of marketable securities
   
22,737
     
23,926
     
8,925
     
6,734
 
Purchase of marketable securities
   
(11,659
)
   
(24,561
)
   
(5,451
)
   
(6,985
)
Proceeds from bank deposits, net
   
4,757
     
5,466
     
1,137
     
1,921
 
Proceeds from sale of property, plant and equipment
   
-
     
5
     
-
     
5
 
                                 
Net cash provided by investing activities
   
15,245
     
4,028
     
4,463
     
1,578
 
                                 
Cash Flows from Financing Activities
                               
                                 
Proceeds from exercise of options
   
683
     
186
     
1
     
43
 
Proceeds from government grants
   
339
     
802
     
73
     
398
 
Repayment of government grants
   
(208
)
   
(333
)
   
-
     
-
 
                                 
Net cash provided by financing activities
   
814
     
655
     
74
     
441
 
                                 
Exchange rate differences - cash and cash equivalent balances
   
69
     
25
     
7
     
10
 
                                 
Increase (decrease) in cash and cash equivalents
   
199
     
(6,985
)
   
978
     
(2,203
)
                                 
Cash and cash equivalents, beginning of the period
   
3,236
     
10,221
     
2,457
     
5,439
 
                                 
Cash and cash equivalents, end of the period
 
$
3,435
   
$
3,236
   
$
3,435
   
$
3,236
 
                                 
Significant non-cash transactions
                               
                                 
Acquisition of property, plant and equipment
 
$
39
   
$
150
   
$
39
   
$
150
 

 

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