ENTERA BIO LTD.
(Registrant)
|
|||
By:
|
/s/ Dr. Phillip Schwartz
|
||
Name: Dr. Phillip Schwartz
|
|||
Title: Chief Executive Officer
|
|||
Page
|
|
CONDENSED CONSOLIDTED FINANCIAL STATEMENTS (Unaudited) – U.S DOLLARS IN THOUSANDS ($):
|
|
2
|
|
3
|
|
4
|
|
5-6
|
|
7-12
|
June 30
|
December 31
|
|||||||
2018
|
2017
|
|||||||
U.S. dollars in thousands
|
||||||||
A s s e t s
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
6,471
|
11,746
|
||||||
Other current assets
|
1,017
|
671
|
||||||
TOTAL CURRENT ASSETS
|
7,488
|
12,417
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Property and equipment
|
248
|
207
|
||||||
Intangible assets
|
654
|
654
|
||||||
TOTAL NON-CURRENT ASSETS
|
902
|
861
|
||||||
TOTAL ASSETS
|
8,390
|
13,278
|
||||||
Liabilities net of capital deficiency
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable:
|
||||||||
Trade
|
262
|
596
|
||||||
Other
|
1,766
|
1,424
|
||||||
TOTAL CURRENT LIABILITIES
|
2,028
|
2,020
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Convertible loan
|
3,925
|
3,893
|
||||||
Preferred shares
|
30,905
|
33,455
|
||||||
Warrants to purchase preferred shares and shares
|
5,020
|
5,398
|
||||||
Severance pay obligations, net
|
66
|
70
|
||||||
TOTAL NON-CURRENT LIABILITIES
|
39,916
|
42,816
|
||||||
TOTAL LIABILITIES
|
41,944
|
44,836
|
||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
CAPITAL DEFICIENCY:
|
||||||||
Ordinary Shares, NIS 0.01 par value:
|
||||||||
Authorized - as of June 30, 2018 and December 31, 2017,1,000,000 shares; issued and outstanding as of June 30, 2018, and December 31, 2017-34,544 shares
|
*
|
*
|
||||||
Accumulated other comprehensive income
|
41
|
41
|
||||||
Other reserves
|
7,896
|
7,361
|
||||||
Additional paid in capital
|
2,915
|
2,853
|
||||||
Accumulated deficit
|
(44,406
|
)
|
(41,813
|
)
|
||||
TOTAL CAPITAL DEFICIENCY
|
(33,554
|
)
|
(31,558
|
)
|
||||
TOTAL LIABILITIES NET OF CAPITAL DEFICIENCY
|
8,390
|
13,278
|
Six months ended
|
Three months ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
U.S. dollars in thousands
|
||||||||||||||||
RESEARCH AND DEVELOPMENT EXPENSES
|
4,658
|
1,280
|
1,765
|
601
|
||||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES (INCOME)
|
854
|
2,894
|
(409
|
)
|
2,392
|
|||||||||||
OPERATING LOSS
|
5,512
|
4,174
|
1,356
|
2,993
|
||||||||||||
FINANCIAL EXPENSES (INCOME):
|
||||||||||||||||
Income from change in fair value of financial liabilities at fair value
|
(2,896
|
)
|
(479
|
)
|
(2,876
|
)
|
(742
|
)
|
||||||||
Other financial expenses (income), net
|
(23
|
)
|
71
|
(43
|
)
|
8
|
||||||||||
FINANCIAL INCOME, net
|
(2,919
|
)
|
(408
|
)
|
(2,919
|
)
|
(734
|
)
|
||||||||
NET COMPREHENSIVE LOSS (INCOME) FOR THE PERIOD
|
2,593
|
3,766
|
(1,563
|
)
|
2,259
|
U.S. dollars
|
U.S. dollars
|
|||||||||||||||
LOSS (INCOME) PER ORDINARY SHARE -
|
||||||||||||||||
Basic
|
75.06
|
109.02
|
(45.25
|
)
|
65.39
|
|||||||||||
Diluted
|
91.14
|
123.86
|
13.97
|
77.87
|
||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING -
|
||||||||||||||||
Basic
|
34,544
|
34,544
|
34,544
|
34,544
|
||||||||||||
Diluted
|
36,427
|
47,320
|
74,161
|
44,766
|
Number of Ordinary Shares
|
Ordinary Shares-Amount
|
Accumulated other comprehensive income
|
Other reserve
|
Additional paid in capital
|
Accumulated deficit
|
Total
|
||||||||||||||||||||||
U.S dollars in thousands
|
||||||||||||||||||||||||||||
BALANCE AT JANUARY 1, 2017
|
34,544
|
*
|
41
|
2,844
|
2,485
|
(30,616
|
)
|
(25,246
|
)
|
|||||||||||||||||||
CHANGES FOR SIX MONTHS ENDED JUNE 30, 2017:
|
|
|
|
|
||||||||||||||||||||||||
Net loss for the period
|
-
|
-
|
-
|
-
|
-
|
(3,766
|
)
|
(3,766
|
)
|
|||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
2,247
|
-
|
-
|
2,247
|
|||||||||||||||||||||
BALANCE AT JUNE 30, 2017
|
34,544
|
*
|
41
|
5,091
|
2,485
|
(34,382
|
)
|
(26,765
|
)
|
|||||||||||||||||||
BALANCE AT JANUARY 1, 2018
|
34,544
|
*
|
41
|
7,361
|
2,853
|
(41,813
|
)
|
(31,558
|
)
|
|||||||||||||||||||
CHANGES FOR SIX MONTHS ENDED JUNE 30, 2018:
|
||||||||||||||||||||||||||||
Net loss for the period
|
(2,593
|
)
|
(2,593
|
)
|
||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
597
|
-
|
-
|
597
|
|||||||||||||||||||||
Reclassification of capital contribution from controlling shareholder
|
-
|
-
|
-
|
(51
|
)
|
51
|
-
|
-
|
||||||||||||||||||||
Reclassification due to share-based compensation forfeited
|
-
|
-
|
-
|
(11
|
)
|
11
|
-
|
-
|
||||||||||||||||||||
BALANCE AT JUNE 30, 2018
|
34,544
|
*
|
41
|
7,896
|
2,915
|
(44,406
|
)
|
(33,554
|
)
|
Six months ended June 30
|
||||||||
2018
|
2017
|
|||||||
(Unaudited)
|
||||||||
U.S dollars in thousands
|
||||||||
CASH FLOWS USED IN OPERATING ACTIVITIES:
|
||||||||
Net loss for the period
|
(2,593
|
)
|
(3,766
|
)
|
||||
Adjustments required to reflect net cash used in operating activities (see appendix A)
|
(2,614
|
)
|
1,916
|
|||||
Net cash used in operating activities
|
(5,207
|
)
|
(1,850
|
)
|
||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
|
||||||||
Decrease in restricted deposits
|
-
|
1,054
|
||||||
Purchase of property and equipment
|
(68
|
)
|
(47
|
)
|
||||
Net cash provided by (used in) investing activities
|
(68
|
)
|
1,007
|
|||||
CASH FLOWS USED IN FINANCING ACTIVITIES:
|
||||||||
Payment for maturity of Convertible loans
|
-
|
(980
|
)
|
|||||
Net cash used in financing activities
|
-
|
(980
|
)
|
|||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(5,275
|
)
|
(1,823
|
)
|
||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR
|
11,746
|
4,163
|
||||||
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD
|
6,471
|
2,340
|
Six months
ended June 30
|
||||||||
2018
|
2017
|
|||||||
(Unaudited)
|
||||||||
U.S dollars in thousands
|
||||||||
APPENDIX A:
|
||||||||
Adjustments required to reflect net cash used in operating activities:
|
||||||||
Depreciation
|
27
|
19
|
||||||
Gain from change in fair value of financial liabilities at fair value
|
(2,896
|
)
|
(479
|
)
|
||||
Financial expenses
|
32
|
47
|
||||||
Net changes in severance pay
|
(4
|
)
|
5
|
|||||
Share-based compensation
|
597
|
2,247
|
||||||
(2,244
|
)
|
1,839
|
||||||
Changes in working capital:
|
||||||||
Increase in other current assets
|
(346
|
)
|
(219
|
)
|
||||
Increase (decrease) in accounts payable and accruals:
|
||||||||
Trade
|
(334
|
)
|
202
|
|||||
Other
|
342
|
168
|
||||||
(338
|
)
|
151
|
||||||
Cash used for operating activities -
|
||||||||
Interest paid
|
(32
|
)
|
(74
|
)
|
||||
(2,614
|
)
|
1,916
|
a. |
Entera Bio Ltd. (the "Company") was incorporated on June 1, 2010.
|
b. |
Since the Company is engaged in research and development activities, it has not yet derived income from its activity and has incurred through June 30, 2018, accumulated losses in the amount of $44,406 thousand. The Company also has negative working capital and has cash outflows from operating activities. The Company's management is of the opinion that its available funds as of June 30, 2018 and the net proceeds from the IPO (as detailed in note 7) are sufficient to support the Company’s ongoing operations for at least 12 months. Nevertheless, The Company requires substantial additional funding in order to continue its research and development programs. These factors raise substantial doubt as to the Company's ability to continue as a going concern.
|
Financial liabilities at fair value through profit or loss (Level 3)
|
Financial liabilities at amortized cost
|
Total
|
||||||||||
U.S. dollars in thousands
|
||||||||||||
As of June 30, 2018:
|
||||||||||||
Trade and other payable
|
-
|
2,028
|
2,028
|
|||||||||
Convertible loan
|
3,925
|
-
|
3,925
|
|||||||||
Preferred shares
|
30,905
|
-
|
30,905
|
|||||||||
Warrants to purchase preferred shares and shares
|
5,020
|
-
|
5,020
|
|||||||||
39,850
|
2,028
|
41,878
|
||||||||||
As of December 31, 2017:
|
||||||||||||
Trade and other payable
|
-
|
2,020
|
2,020
|
|||||||||
Convertible loan
|
3,893
|
-
|
3,893
|
|||||||||
Preferred shares
|
33,455
|
-
|
33,455
|
|||||||||
Warrants to purchase preferred shares and shares
|
5,398
|
-
|
5,398
|
|||||||||
42,746
|
2,020
|
44,766
|
June 30,
|
December 31,
|
|||||||
2018
|
2017
|
|||||||
Price per share*
|
$
|
819
|
$
|
908.78
|
||||
Volatility
|
62
|
%
|
55
|
%
|
||||
Probability of entering Phase 2b/3
|
NA
|
70
|
%
|
|||||
Probability for IPO
|
100
|
%
|
85
|
%
|
A. |
On January 10, 2018, the Company appointed Dr. Eric Lang as the Company’s Chief Medical Officer, effective January 15, 2018. In connection with Dr. Lang’s appointment as the Company’s new Chief Medical Officer, the Company’s Board of Directors granted Dr. Lang options to purchase 850 ordinary shares at an exercise price of $820 per share. The options vest over 4 years from the date of grant; 1/4 vest on the date of grant and the remaining vest in twelve equal quarterly installments following the first anniversary of the applicable grant date. The fair value of the options at the date of grant was $420 thousand.
|
B. |
In January 2018, the Company granted options to purchase 250 ordinary shares to a certain consultant, with an exercise price of $273.88. The options vested immediately. The fair value of the options at the date of grant was $138 thousand.
|
C. |
The resignation of Mr. Beshar, the Chairman of the board took effect on June 27, 2018, prior to the effectiveness of the final prospectus of the Company. According to the Mr. Beshar's options terms , options which have yet to fully vest are forfeited and were recognized in the financial statements as a reverse of expense under the General and Administrative line item in the amount of $1,326 thousand.
|
D. |
Prior to the closing of the IPO the Company's board of directors and shareholders of the Company approved a new Share Incentive Plan (the “New Plan”), subject to the closing of the IPO (see note 7) and has reserved 1,371,398 number of Ordinary Shares, of the Company for allocation of stock options, restricted share units, restricted share awards and performance-based awards (the "Option"), to employees and non-employees. for issuance under the New Plan each Option is exercisable to one ordinary share.
Any option granted under the Plan that is not exercised within 10 years from the date upon which it becomes exercisable will expire.
|
Six months ended
|
Three months ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
U.S. dollars
(except for share numbers)
|
||||||||||||||||
Loss (Income) attributable to equity holders of the Company
|
2,593,000
|
3,766,000
|
(1,563,000
|
)
|
2,259,000
|
|||||||||||
Less: | ||||||||||||||||
Income from change in fair value of financial liabilities at fair value
|
(727,000
|
)
|
(2,095,000
|
)
|
(2,599,000
|
)
|
(1,227,000
|
)
|
||||||||
Loss used for the computation of diluted loss per share
|
3,320,000
|
5,861,000
|
1,036,000
|
3,486,000
|
||||||||||||
Weighted average number of Ordinary Shares used in the computation of basic loss (income) per share
|
34,544
|
34,544
|
34,544
|
34,544
|
||||||||||||
Add:
|
||||||||||||||||
Weighted average number of additional shares issuable upon the assumed conversion of:
|
||||||||||||||||
Preferred shares
|
-
|
10,222
|
37,734
|
10,222
|
||||||||||||
Warrants to issue preferred shares and shares
|
1,883
|
2,554
|
1,883
|
-
|
||||||||||||
1,883
|
12,776
|
39,617
|
10,222
|
|||||||||||||
Weighted average number of Shares used in the computation of diluted loss per share
|
36,427
|
47,320
|
74,161
|
44,766
|
||||||||||||
Basic loss (income) per Share
|
75.06
|
109.02
|
(45.25
|
)
|
65.39
|
|||||||||||
Diluted loss per Share
|
91.14
|
123.86
|
13.97
|
77.87
|
A. |
A 1-for- 130 split of the Company's ordinary shares.
|
B. |
The Company’s outstanding 2012 Convertible loans were automatically converted into 622,180 Ordinary Shares of the Company.
|
C. |
The Company's Series A Preferred Shares, Series B Preferred Shares and Series B-1 Preferred Shares were automatically converted into 1,328,860, 1,856,790 and 1,719,770, Ordinary Shares of the Company, respectively.
|
D. |
The Company's Warrants for Series A preferred shares, Warrants to Series B preferred shares and Warrants to Series B-1 preferred shares were automatically converted into 343,200, 756,340 and 467,220 warrants, respectively, to purchase Ordinary Shares of the Company.
|
E. |
Existing options to purchase Series A preferred shares and warrants to purchase Series A preferred shares, granted to certain holders of our Series A preferred shares that are exercisable upon the closing of this offering, were automatically converted into options to purchase 387,530 ordinary shares and into warrants to purchase 85,931 ordinary shares.
|
• |
our operation as a development stage company with limited operating history and a history of operating losses and our ability to fund our operations going forward;
|
• |
our ability to develop and advance product candidates into, and successfully complete, clinical studies;
|
• |
uncertainty surrounding whether any of our product candidates will receive regulatory approval, which is necessary before they can be commercialized, including that we will be able to demonstrate to regulators the clinical superiority of EB612 over Natpara, which is required to overcome Natpara’s drug exclusivity;
|
• |
our competitive position, especially with respect to Natpara, our key competitor for hypoparathyroidism treatment;
|
• |
our recurring losses from operations have raised substantial doubt regarding our ability to continue as a going concern absent access to sources of liquidity;
|
• |
our ability to use and expand our drug delivery technology to other product candidates;
|
• |
the pricing and reimbursement of our product candidates, if approved;
|
• |
our being subject to ongoing regulatory obligations if our products secure regulatory approval;
|
• |
our ability to develop sales, marketing and distribution infrastructure;
|
• |
our reliance on third parties to conduct our clinical trials and on third-party suppliers to supply or produce our product candidates;
|
• |
our ability to achieve market acceptance for our product candidates;
|
• |
our ability to obtain and maintain adequate intellectual property rights and adequately protect and enforce such rights;
|
• |
our ability to retain key personnel and recruit additional qualified personnel;
|
• |
our expectations about cash use;
|
• |
our ability to manage growth; and
|
• |
other risk factors discussed under “Risk Factors" in our Prospectus.
|
(unaudited)
Six Months Ended June 30, |
Increase (Decrease)
|
|||||||||||||||
2018
|
2017
|
$
|
%
|
|||||||||||||
(In thousands, except for percentage information)
|
||||||||||||||||
Expenses:
|
||||||||||||||||
Research and development
|
$
|
4,658
|
$
|
1,280
|
$
|
3,378
|
263.9
|
%
|
||||||||
General and administrative
|
854
|
2,894
|
(2,040
|
)
|
(70.5
|
)%
|
||||||||||
Operating loss
|
5,512
|
4,174
|
1,338
|
32.06
|
%
|
|||||||||||
Financial income, net
|
(2,919
|
)
|
(408
|
)
|
(2,511
|
)
|
—
|
|||||||||
Net loss
|
$
|
2,593
|
$
|
3,766
|
$
|
(1,123
|
)
|
(31.15
|
)%
|
(unaudited)
Three Months Ended June 30, |
Increase (Decrease)
|
|||||||||||||||
2018
|
2017
|
$
|
%
|
|||||||||||||
(In thousands, except for percentage information)
|
||||||||||||||||
Expenses:
|
||||||||||||||||
Research and development
|
$
|
1,765
|
$
|
601
|
$
|
1,164
|
193.6
|
%
|
||||||||
General and administrative
|
(409
|
)
|
2,392
|
(2,801
|
)
|
(117.1
|
)%
|
|||||||||
Operating loss
|
1,356
|
2,993
|
(1,637
|
)
|
(54.7
|
)%
|
||||||||||
Financial income, net
|
(2,919
|
)
|
(734
|
)
|
(2,511
|
)
|
—
|
|||||||||
Net loss (Income)
|
$
|
(1,563
|
)
|
$
|
2,259
|
$
|
(3,822
|
)
|
(169.2
|
)%
|
Entera Bio Ltd.
Phillip Schwartz, CEO
Tel: +972-2- 532-7151
phillip@enterabio.com
|
INTERNATIONAL INVESTOR RELATIONS
Bob Yedid
LifeSci Advisors, LLC
646-597-6989
bob@lifesciadvisors.com
|
· |
Closed Initial Public Offering on July 2, 2018
|
· |
Completed Part 1 of a Phase 2 PK/PD Study in Hypoparathyroidism Patients
|
· |
Mr. Gerald Lieberman was Appointed as Chairman of the Board of Directors
|
June 30
|
December 31
|
|||||||
2018
|
2017
|
|||||||
U.S. dollars in thousands
|
||||||||
A s s e t s
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
6,471
|
11,746
|
||||||
Other current assets
|
1,017
|
671
|
||||||
TOTAL CURRENT ASSETS
|
7,488
|
12,417
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Property and equipment
|
248
|
207
|
||||||
Intangible assets
|
654
|
654
|
||||||
TOTAL NON-CURRENT ASSETS
|
902
|
861
|
||||||
TOTAL ASSETS
|
8,390
|
13,278
|
||||||
Liabilities net of capital deficiency
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable:
|
||||||||
Trade
|
262
|
596
|
||||||
Other
|
1,766
|
1,424
|
||||||
TOTAL CURRENT LIABILITIES
|
2,028
|
2,020
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Convertible loan
|
3,925
|
3,893
|
||||||
Preferred shares
|
30,905
|
33,455
|
||||||
Warrants to purchase preferred shares and shares
|
5,020
|
5,398
|
||||||
Severance pay obligations, net
|
66
|
70
|
||||||
TOTAL NON-CURRENT LIABILITIES
|
39,916
|
42,816
|
||||||
TOTAL LIABILITIES
|
41,944
|
44,836
|
||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
CAPITAL DEFICIENCY:
|
||||||||
Ordinary Shares, NIS 0.01 par value:
|
||||||||
Authorized - as of June 30, 2018 and December 31, 2017,
|
||||||||
1,000,000 shares; issued and outstanding
|
||||||||
as of June 30, 2018, and December 31, 2017-34,544 shares
|
*
|
*
|
||||||
Accumulated other comprehensive income
|
41
|
41
|
||||||
Other reserves
|
7,896
|
7,361
|
||||||
Additional paid in capital
|
2,915
|
2,853
|
||||||
Accumulated deficit
|
(44,406
|
)
|
(41,813
|
)
|
||||
TOTAL CAPITAL DEFICIENCY
|
(33,554
|
)
|
(31,558
|
)
|
||||
TOTAL LIABILITIES NET OF CAPITAL DEFICIENCY
|
8,390
|
13,278
|
Six months ended
|
Three months ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
U.S. dollars in thousands
|
||||||||||||||||
RESEARCH AND DEVELOPMENT EXPENSES
|
4,658
|
1,280
|
1,765
|
601
|
||||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES (INCOME)
|
854
|
2,894
|
(409
|
)
|
2,392
|
|||||||||||
OPERATING LOSS
|
5,512
|
4,174
|
1,356
|
2,993
|
||||||||||||
FINANCIAL EXPENSES (INCOME):
|
||||||||||||||||
Income from change in fair value of financial liabilities at fair value
|
(2,896
|
)
|
(479
|
)
|
(2,876
|
)
|
(742
|
)
|
||||||||
Other financial expenses (income), net
|
(23
|
)
|
71
|
(43
|
)
|
8
|
||||||||||
FINANCIAL INCOME, net
|
(2,919
|
)
|
(408
|
)
|
(2,919
|
)
|
(734
|
)
|
||||||||
NET COMPREHENSIVE LOSS (INCOME) FOR THE PERIOD
|
2,593
|
3,766
|
(1,563
|
)
|
2,259
|
U.S. dollars
|
U.S. dollars
|
|||||||||||||||
LOSS (INCOME) PER ORDINARY SHARE -
|
||||||||||||||||
Basic
|
75.06
|
109.02
|
(45.25
|
)
|
65.39
|
|||||||||||
Diluted
|
91.14
|
123.86
|
13.97
|
77.87
|
||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING -
|
||||||||||||||||
Basic
|
34,544
|
34,544
|
34,544
|
34,544
|
||||||||||||
Diluted
|
36,427
|
47,320
|
74,161
|
44,766
|
Number of Ordinary Shares
|
Ordinary Shares-Amount
|
Accumulated other comprehensive income
|
Other
reserve
|
Additional paid in capital
|
Accumulated deficit
|
Total
|
||||||||||||||||||||||
U.S dollars in thousands
|
||||||||||||||||||||||||||||
BALANCE AT JANUARY 1, 2017
|
34,544
|
*
|
41
|
2,844
|
2,485
|
(30,616
|
)
|
(25,246
|
)
|
|||||||||||||||||||
CHANGES FOR SIX MONTHS ENDED JUNE 30, 2017:
|
|
|
|
|
||||||||||||||||||||||||
Net loss for the period
|
-
|
-
|
-
|
-
|
-
|
(3,766
|
)
|
(3,766
|
)
|
|||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
2,247
|
-
|
-
|
2,247
|
|||||||||||||||||||||
BALANCE AT JUNE 30, 2017
|
34,544
|
*
|
41
|
5,091
|
2,485
|
(34,382
|
)
|
(26,765
|
)
|
BALANCE AT JANUARY 1, 2018
|
34,544
|
*
|
41
|
7,361
|
2,853
|
(41,813
|
)
|
(31,558
|
)
|
|||||||||||||||||||
CHANGES FOR SIX MONTHS ENDED JUNE 30, 2018:
|
||||||||||||||||||||||||||||
Net loss for the period
|
(2,593
|
)
|
(2,593
|
)
|
||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
597
|
-
|
-
|
597
|
|||||||||||||||||||||
Reclassification of capital contribution from controlling shareholder
|
-
|
-
|
-
|
(51
|
)
|
51
|
-
|
-
|
||||||||||||||||||||
Reclassification due to share-based compensation forfeited
|
-
|
-
|
-
|
(11
|
)
|
11
|
-
|
-
|
||||||||||||||||||||
BALANCE AT JUNE 30, 2018
|
34,544
|
*
|
41
|
7,896
|
2,915
|
(44,406
|
)
|
(33,554
|
)
|
Six months ended June 30
|
||||||||
2018
|
2017
|
|||||||
(Unaudited)
|
||||||||
U.S dollars in thousands
|
||||||||
CASH FLOWS USED IN OPERATING ACTIVITIES:
|
||||||||
Net loss for the period
|
(2,593
|
)
|
(3,766
|
)
|
||||
Adjustments required to reflect net cash used in operating activities (see appendix A)
|
(2,614
|
)
|
1,916
|
|||||
Net cash used in operating activities
|
(5,207
|
)
|
(1,850
|
)
|
||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
|
||||||||
Decrease in restricted deposits
|
-
|
1,054
|
||||||
Purchase of property and equipment
|
(68
|
)
|
(47
|
)
|
||||
Net cash provided by (used in) investing activities
|
(68
|
)
|
1,007
|
|||||
CASH FLOWS USED IN FINANCING ACTIVITIES:
|
||||||||
Payment for maturity of Convertible loans
|
-
|
(980
|
)
|
|||||
Net cash used in financing activities
|
-
|
(980
|
)
|
|||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(5,275
|
)
|
(1,823
|
)
|
||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR
|
11,746
|
4,163
|
||||||
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD
|
6,471
|
2,340
|
Six months
ended June 30
|
||||||||
2018
|
2017
|
|||||||
(Unaudited)
|
||||||||
U.S dollars in thousands
|
||||||||
APPENDIX A:
|
||||||||
Adjustments required to reflect net cash used in operating activities:
|
||||||||
Depreciation
|
27
|
19
|
||||||
Gain from change in fair value of financial liabilities at fair value
|
(2,896
|
)
|
(479
|
)
|
||||
Financial expenses
|
32
|
47
|
||||||
Net changes in severance pay
|
(4
|
)
|
5
|
|||||
Share-based compensation
|
597
|
2,247
|
||||||
(2,244
|
)
|
1,839
|
||||||
Changes in working capital:
|
||||||||
Increase in other current assets
|
(346
|
)
|
(219
|
)
|
||||
Increase (decrease) in accounts payable and accruals:
|
||||||||
Trade
|
(334
|
)
|
202
|
|||||
Other
|
342
|
168
|
||||||
(338
|
)
|
151
|
||||||
Cash used for operating activities -
|
||||||||
Interest paid
|
(32
|
)
|
(74
|
)
|
||||
(2,614
|
)
|
1,916
|