☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 84-1417774 |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization) |
18 East 16th Street, Suite 307, New York, NY | 10003 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $0.01 per share | ATMS | OTCQB |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☒ | Smaller reporting company ☒ |
Emerging growth company ☐ |
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As of March 31, | As of December 31, | |||||||||||
Note | 2019 (Unaudited) | 2018 (Audited) | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 22 | 7 | ||||||||||
Other accounts receivable and prepaid expenses | 16 | 20 | ||||||||||
Total current assets | 38 | 27 | ||||||||||
TOTAL ASSETS | 38 | 27 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accrued expenses and other payables | 169 | 161 | ||||||||||
Related parties | 20 | - | ||||||||||
Derivative warrant liabilities | 7B | - | 163 | |||||||||
Total current liabilities | 189 | 324 | ||||||||||
Total Liabilities | 189 | 324 | ||||||||||
Shareholders’ equity | ||||||||||||
Series A Convertible Preferred stock, $0.01 par value - Authorized: 10,000,000 shares; issued and outstanding: 453 shares as of March 31, 2019 and December 31, 2018 | (* | ) | (* | ) | ||||||||
Series C Convertible Preferred stock, $0.01 par value - Authorized: 250 shares; issued and outstanding: 250 shares as of March 31, 2019 and December 31, 2018 | (* | ) | (* | ) | ||||||||
Common stock, $0.01 par value - authorized: 51,000,000; issued and outstanding: 5,153,380 as of March 31, 2019 and December 31, 2018 | 52 | 52 | ||||||||||
Additional paid in capital | 7 | 1,894 | 1,571 | |||||||||
Accumulated deficit | (2,097 | ) | (1,920 | ) | ||||||||
Total stockholders' equity | (151 | ) | (297 | ) | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 38 | 27 |
As of June 30, | As of December 31, | |||||||||||
Note | 2019 (Unaudited) | 2018 (Audited) | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 7 | 7 | ||||||||||
Other accounts receivable and prepaid expenses | 31 | 20 | ||||||||||
Total current assets | 38 | 27 | ||||||||||
TOTAL ASSETS | 38 | 27 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accrued expenses and other payables | 154 | 161 | ||||||||||
Derivative warrant liabilities | 7B | - | 163 | |||||||||
Total current liabilities | 154 | 324 | ||||||||||
Long term liabilities | ||||||||||||
Related Parties | 8 | 100 | - | |||||||||
Total Liabilities | 254 | 324 | ||||||||||
Shareholders’ equity | ||||||||||||
Series A Convertible Preferred stock, $0.01 par value - Authorized: 10,000,000 shares; issued and outstanding: 453 shares as of June 30, 2019 and December 31, 2018 | (* | ) | (* | ) | ||||||||
Series C Convertible Preferred stock, $0.01 par value - Authorized: 250 shares; issued and outstanding: 250 shares as of June 30, 2019 and December 31, 2018 | (* | ) | (* | ) | ||||||||
Common stock, $0.01 par value - authorized: 51,000,000; issued and outstanding: 5,153,461 as of June 30, 2019 and December 31, 2018 | 52 | 52 | ||||||||||
Additional paid in capital | 7 | 1,898 | 1,571 | |||||||||
Accumulated deficit | (2,166 | ) | (1,920 | ) | ||||||||
Total stockholders' equity | (216 | ) | (297 | ) | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 38 | 27 |
Three Months Ended March 31, 2019 (Unaudited) | Three Months Ended March 31, 2018 (Unaudited) | |||||||
Research and development expenses | - | 71 | ||||||
General and administrative | 20 | 229 | ||||||
Operating (loss) | (20 | ) | (300 | ) | ||||
Finance income (Expense) | (1 | ) | 89 | |||||
Net loss | (21 | ) | (211 | ) | ||||
Net income (loss) per share, basic and diluted (Note 6) | (0.00 | ) | (0.03 | ) | ||||
Weighted average number of common stock used in calculation of net loss per share: Basic and diluted | 5,153,380 | 5,153,380 |
Common Stock | Preferred Stock A | Preferred Stock C | Additional paid-in Capital | Accumulated | Total stockholders' | |||||||||||||||||||||||||||||||
Number of Shares | USD | Number | Amount | Number | Amount | (deficiency) | Equity | |||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 5,153,380 | 52 | 453 | (* | ) | 250 | (* | ) | 1,571 | (1,920 | ) | (297 | ) | |||||||||||||||||||||||
Adoption of ASU 2017-11 (see Note 2J) | 319 | (156 | ) | 163 | ||||||||||||||||||||||||||||||||
Share based compensation | 4 | 4 | ||||||||||||||||||||||||||||||||||
Net loss | (21 | ) | (21 | ) | ||||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | 5,153,380 | 52 | 453 | (* | ) | 250 | (* | ) | 1,894 | (2,097 | ) | (151 | ) |
Common Stock | Preferred Stock A | Preferred Stock C | Additional paid-in Capital | Accumulated | Total stockholders' | |||||||||||||||||||||||||||||||
Number of Shares | USD | Number | Amount | Number | Amount | (deficiency) | Equity | |||||||||||||||||||||||||||||
Balance as of December 31, 2017 | 5,153,380 | 52 | 453 | (* | ) | 250 | (* | ) | 1,457 | (1,407 | ) | 102 | ||||||||||||||||||||||||
Share based compensation | 101 | 101 | ||||||||||||||||||||||||||||||||||
Net loss | (211 | ) | (211 | ) | ||||||||||||||||||||||||||||||||
Balance as of March 31, 2018 | 5,153,380 | 52 | 453 | (* | ) | 250 | (* | ) | 1,558 | (1,618 | ) | (8 | ) |
Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Note | (Unaudited) | (Unaudited) | ||||||||||||||||||
Research and development expenses | - | 129 | - | 58 | ||||||||||||||||
General and administrative | 90 | 383 | 70 | 154 | ||||||||||||||||
Operating (loss) | (90 | ) | (512 | ) | (70 | ) | (212 | ) | ||||||||||||
Finance income | - | 160 | 1 | 71 | ||||||||||||||||
Net loss | (90 | ) | (352 | ) | (69 | ) | (141 | ) | ||||||||||||
Net loss per share, basic and diluted | 6 | (0.01 | ) | (0.06 | ) | (0.01 | ) | (0.02 | ) | |||||||||||
Weighted average number of common stock used in calculation of net loss per share: | ||||||||||||||||||||
Basic and diluted | 5,153,461 | 5,153,461 | 5,153,461 | 5,153,461 |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Net cash used in operating activities | ||||||||
Net (loss) | (21 | ) | (211 | ) | ||||
Share based compensation expenses | 4 | 101 | ||||||
Decrease in other accounts receivable and prepaid expenses | 4 | 14 | ||||||
Increase (decrease) in accrued expenses and other payables | 8 | (1 | ) | |||||
Change in the fair value of derivative warrant liability | - | (89 | ) | |||||
Net cash used in operating activities | (5 | ) | (186 | ) | ||||
Cash flows from financing activities | ||||||||
Related party proceeds | 20 | - | ||||||
Cash flows from financing activities | 20 | - | ||||||
Increase (Decrease) in cash and cash equivalents | 15 | (186 | ) | |||||
Cash and cash equivalents at the beginning of the period | 7 | 525 | ||||||
Cash and cash equivalents at the end of the period | 22 | 339 |
Common Stock | Preferred Stock A | Preferred Stock C | Additional paid-in Capital | Accumulated deficiency | Total stockholders' Equity | |||||||||||||||||||||||||||||||
Number | USD | Number | Amount | Number | Amount | |||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | 5,153,461 | 52 | 453 | (* | ) | 250 | (* | ) | 1,894 | (2,097 | ) | (151 | ) | |||||||||||||||||||||||
Share based compensation | - | - | - | - | - | - | 4 | - | 4 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (69 | ) | (69 | ) | |||||||||||||||||||||||||
Balance as of June 30, 2019 | 5,153,461 | 52 | 453 | (* | ) | 250 | (* | ) | 1,898 | (2,166 | ) | (216 | ) |
Common Stock | Preferred Stock A | Preferred Stock C | Additional paid-in Capital | Accumulated deficiency | Total stockholders' Equity | |||||||||||||||||||||||||||||||
Number | USD | Number | Amount | Number | Amount | |||||||||||||||||||||||||||||||
Balance as of March 31, 2018 | 5,153,461 | 52 | 453 | (* | ) | 250 | (* | ) | 1,558 | (1,618 | ) | (8 | ) | |||||||||||||||||||||||
Share based compensation | - | - | - | - | - | - | 12 | - | 12 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (141 | ) | (141 | ) | |||||||||||||||||||||||||
Balance as of June 30, 2018 | 5,153,461 | 52 | 453 | (* | ) | 250 | (* | ) | 1,570 | (1,759 | ) | (137 | ) |
Common Stock | Preferred Stock A | Preferred Stock C | Additional paid-in Capital | Accumulated deficiency | Total stockholders' Equity | |||||||||||||||||||||||||||||||
Number | USD | Number | Amount | Number | Amount | |||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 5,153,461 | 52 | 453 | (* | ) | 250 | (* | ) | 1,571 | (1,920 | ) | (297 | ) | |||||||||||||||||||||||
Adoption of new accounting Standards | - | - | - | - | - | - | 319 | (156 | ) | 163 | ||||||||||||||||||||||||||
Share based compensation | - | - | - | - | - | - | 8 | - | 8 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (90 | ) | (90 | ) | |||||||||||||||||||||||||
Balance as of June 30, 2019 | 5,153,461 | 52 | 453 | (* | ) | 250 | (* | ) | 1,898 | (2,166 | ) | (216 | ) |
Common Stock | Preferred Stock A | Preferred Stock C | Additional paid-in Capital | Accumulated deficiency | Total stockholders' Equity | |||||||||||||||||||||||||||||||
Number | USD | Number | Amount | Number | Amount | |||||||||||||||||||||||||||||||
Balance as of December 31, 2017 | 5,153,461 | 52 | 453 | (* | ) | 250 | (* | ) | 1,457 | (1,407 | ) | 102 | ||||||||||||||||||||||||
Share based compensation | - | - | - | - | - | - | 113 | - | 113 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (352 | ) | (352 | ) | |||||||||||||||||||||||||
Balance as of June 30, 2018 | 5,153,461 | 52 | 453 | (* | ) | 250 | (* | ) | 1,570 | (1,759 | ) | (137 | ) |
Six Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
Net cash used in operating activities | ||||||||
Net (loss) | (90 | ) | (352 | ) | ||||
Share based compensation expenses | 8 | 113 | ||||||
Decrease (increase) in other accounts receivable and prepaid expenses | (11 | ) | 25 | |||||
Decrease in accrued expenses and other payables | (7 | ) | - | |||||
Change in the fair value of derivative warrant liability | - | (163 | ) | |||||
Net cash used in operating activities | (100 | ) | (377 | ) | ||||
Cash flows from financing activities | ||||||||
Related party proceeds | 100 | - | ||||||
Cash flows from financing activities | 100 | - | ||||||
Decrease in cash and cash equivalents | - | (377 | ) | |||||
Cash and cash equivalents at the beginning of the period | 7 | 525 | ||||||
Cash and cash equivalents at the end of the period | 7 | 148 |
A. |
B. | Establishment of Artemis (the "accounting acquirer"): |
C. | Going Concern: |
A. |
B. | Use of estimates in the preparation of financial statements: |
C. | Cash and cash |
D. | Fair value of financial |
Basic and diluted net loss per |
Research and development expenses, |
G. | Income Tax |
Share-based |
Recent Accounting |
I. | Recent Accounting Standards (Cont.) |
As of January 1, 2019 | Adjustment | As of December 31, 2018 | ||||||||||
Derivative warrant liability | - | (163 | ) | 163 | ||||||||
Additional paid-in capital | 1,890 | 319 | 1,571 | |||||||||
Accumulated deficit | (2,076 | ) | (156 | ) | (1,920 | ) |
A. | Tax rates applicable to the income |
B. | Deferred income taxes |
As of March 31, 2019 | As of December 31, 2018 | As of June 30, 2019 | As of December 31, 2018 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Deferred tax assets: | ||||||||||||||||
Deferred taxes due to carryforward losses | 2,857 | 2,864 | 2,872 | 2,864 | ||||||||||||
Valuation allowance | (2,857 | ) | (2,864 | ) | (2,872 | ) | (2,864 | ) | ||||||||
Net deferred tax asset | - | - | - | - |
C. | Tax loss carry-forwards |
As of March 31, 2019 | As of December 31, 2018 | As of June 30, 2019 | As of December 31, 2018 | |||||||||||||
Israel | 4,814 | 4,799 | 4,840 | 4,799 | ||||||||||||
United States (*) | 8,331 | 8,385 | 8,374 | 8,385 | ||||||||||||
13,145 | 13,184 | 13,214 | 13,184 |
ISSUANCE DATE | NUMBER OF WARRANTS OUTSTANDING as September 30, 2018 | EXERCISE PRICE | EXERCISABLE THROUGH | ||||||
October 2017 * | 275,000 | $ | 2.00 | October 2022 |
Issuance date | Number of warrants outstanding as June 30, 2019 | Exercise price | Exercisable through | ||||||
October 2017 | 275,000 | $ | 2.00 | October 2022 |
Six Months Ended June 30 | Three Months Ended June 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Unaudited | Unaudited | |||||||||||||||
Net loss available to stockholders of the company | (90 | ) | (352 | ) | (69 | ) | (141 | ) | ||||||||
Net loss attributable to stockholders of preferred shares | (13 | ) | (52 | ) | (10 | ) | (21 | ) | ||||||||
Net loss used in the calculation of basic loss per share | (77 | ) | (300 | ) | (59 | ) | (120 | ) | ||||||||
Net loss per share | (0.01 | ) | (0.06 | ) | (0.01 | ) | (0.02 | ) | ||||||||
Weighted average number of common stock used in the calculation of net loss per share | 5,153,461 | 5,153,461 | 5,153,461 | 5,153,461 |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Net Income (loss) available to stockholders of the company | (21 | ) | (211 | ) | ||||
Net Income (loss) attributable to stockholders of preferred shares | (3 | ) | (32 | ) | ||||
Net Income (loss) used in the calculation of basic loss per share | (18 | ) | (179 | ) | ||||
Net Income (loss) per share | (0.00 | ) | (0.03 | ) | ||||
Weighted average number of common stock used in the calculation of net loss per share | 5,153,380 | 5,153,380 |
A. | Stockholders Rights: |
B. | Issuance of |
B. | Issuance of Shares (Cont.) |
C. | Reverse Stock |
D. | Options issued to employees and |
D. | Options issued to employees and consultants (Cont.) |
For the three months ended March 31, 2019 | ||||||||||||
Number of stock options | Weighted average exercise price | Aggregate intrinsic value | ||||||||||
Outstanding at beginning of period | 250,716 | 0.83 | ||||||||||
Granted | - | - | ||||||||||
Exercised | - | - | ||||||||||
Cancelled | 109,188 | 1.30 | ||||||||||
Outstanding at end of period | 141,528 | 0.47 | 22,891 | |||||||||
Options exercisable at period end | 106,111 | 0.19 | 22,891 |
For the Six months ended June 30, 2019 | ||||||||||||
Number of stock options | Weighted average exercise price | Aggregate intrinsic value | ||||||||||
Outstanding at beginning of period | 250,716 | 0.83 | 54,002 | |||||||||
Granted | - | - | - | |||||||||
Exercised | - | - | - | |||||||||
Cancelled | 109,188 | 1.30 | - | |||||||||
Outstanding at end of period | 141,528 | 0.47 | 15,102 | |||||||||
Options exercisable at period end | 109,236 | 0.19 | 15,102 | |||||||||
For the twelve months ended December 31, 2018 | ||||||||||||
Number of stock options | Weighted average exercise price | Aggregate intrinsic value | ||||||||||
Outstanding at beginning of period | 334,168 | 0.95 | ||||||||||
Granted | 98,528 | 1.30 | ||||||||||
Exercised | - | - | ||||||||||
Cancelled | 181,980 | 1.30 | ||||||||||
Outstanding at end of period | 250,716 | 0.83 | 54,002 | |||||||||
Options exercisable at period end | 212,174 | 0.74 | 54,002 |
D. | Options issued to employees and consultants (Cont.) |
Exercise price | Exercise price | Stock options outstanding as of March 31, | Stock options outstanding as of December 31, | Weighted average remaining contractual life – years as of March 31, | Weighted average remaining contractual life – years as of December 31, | Stock options exercisable as of March 31, | Stock options exercisable as of December 31, | Exercise price | Stock options outstanding as of June 30, | Stock options outstanding as of December 31, | Weighted average remaining contractual life – years as of June 30, | Weighted average remaining contractual life – years as of December 31, | Stock options exercisable as of June 30, | Stock options exercisable as of December 31, | ||||||||||||||||||||||||||||||||||||||
$ | $ | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | $ | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
0.01 | 91,528 | 91,528 | 7.40 | 7.64 | 91,528 | 91,528 | 0.01 | 91,528 | 91,528 | 7.15 | 7.64 | 91,528 | 91,528 | |||||||||||||||||||||||||||||||||||||||
1.30 | - | 60,660 | - | 8.61 | - | 60,660 | 1.30 | - | 60,660 | - | 8.61 | - | 60,660 | |||||||||||||||||||||||||||||||||||||||
1.30 | 50,000 | 98,528 | 8.96 | 9.21 | 14,583 | 59,986 | 1.30 | 50,000 | 98,528 | 8.72 | 9.21 | 17,708 | 59,986 | |||||||||||||||||||||||||||||||||||||||
0.83 | 141,528 | 250,716 | 7.95 | 8.46 | 106,111 | 212,174 | 0.83 | 141,528 | 250,716 | 7.67 | 8.46 | 109,236 | 212,174 |
EXHIBIT NUMBER | DESCRIPTION | ||
101.1 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended |
ARTEMIS THERAPEUTICS, INC. | |||
Dated: | By: | /s/ Chanan Morris | |
Chanan Morris | |||
Chief Financial Officer | |||
(Principal Executive Officer and Principal Financial and Accounting Officer) |