Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Protalix BioTherapeutics, Inc. | ||
Entity Central Index Key | 1,006,281 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 105.4 | ||
Trading Symbol | PLX | ||
Entity Common Stock, Shares Outstanding | 145,569,955 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 51,163 | $ 63,281 |
Accounts receivable - Trade | 1,721 | 693 |
Other assets | 1,934 | 2,648 |
Inventories | 7,833 | 5,245 |
Total current assets | 62,651 | 71,867 |
FUNDS IN RESPECT OF EMPLOYEE RIGHTS UPON RETIREMENT | 1,887 | 1,677 |
PROPERTY AND EQUIPMENT, NET | 7,676 | 8,703 |
Total assets | 72,214 | 82,247 |
Accounts payable and accruals: | ||
Trade | 7,521 | 4,007 |
Other | 9,310 | 7,496 |
Convertible notes | 5,921 | 53,872 |
Deferred revenues | 837 | |
Total current liabilities | 22,752 | 66,212 |
LONG TERM LIABILITIES: | ||
Convertible notes | 46,267 | 19,343 |
Deferred revenues | 26,851 | |
Liability for employee rights upon retirement | 2,586 | 2,348 |
Other long term liabilities | 5,051 | 4,301 |
Total long term liabilities | 80,755 | 25,992 |
Total liabilities | 103,507 | 92,204 |
COMMITMENTS (Note 6) | ||
CAPITAL DEFICIENCY: | ||
Common Stock, $0.001 par value: Authorized - as of December 31, 2016 and 2017, 250,000,000 shares; issued and outstanding, respectively - as of December 31, 2016 and 2017, 124,134,085 shares and 143,728,797 shares, respectively | 144 | 124 |
Additional paid-in capital | 266,495 | 202,575 |
Accumulated deficit | (297,932) | (212,656) |
Total capital deficiency | (31,293) | (9,957) |
Total liabilities net of capital deficiency | $ 72,214 | $ 82,247 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, issued | 143,728,797 | 124,134,085 |
Common Stock, outstanding | 143,728,797 | 124,134,085 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES | $ 19,242 | $ 9,199 | $ 4,364 |
COST OF REVENUES | (15,231) | (8,398) | (730) |
GROSS PROFIT | 4,011 | 801 | 3,634 |
RESEARCH AND DEVELOPMENT EXPENSES | (32,170) | (30,412) | (24,889) |
Less - grants | 3,336 | 5,804 | 4,864 |
RESEARCH AND DEVELOPMENT EXPENSES, NET | (28,834) | (24,608) | (20,025) |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | (11,530) | (9,356) | (7,279) |
OPERATING LOSS | (36,353) | (33,163) | (23,670) |
FINANCIAL EXPENSES | (9,725) | (4,192) | (3,735) |
FINANCIAL INCOME | 188 | 589 | 123 |
LOSS FROM CHANGE IN FAIR VALUE OF CONVERTIBLE NOTES EMBEDDED DERIVATIVE | (38,061) | (6,473) | |
(LOSS) GAIN ON EXTINGUISHMENT OF CONVERTIBLE NOTES | (1,325) | 14,063 | |
FINANCIAL (EXPENSES) INCOME - NET | (48,923) | 3,987 | (3,612) |
LOSS FROM CONTINUING OPERATIONS | (85,276) | (29,176) | (27,282) |
(LOSS) INCOME FROM DISCONTINUED OPERATIONS | (189) | 85,319 | |
NET (LOSS) INCOME FOR THE YEAR | $ (85,276) | $ (29,365) | $ 58,037 |
NET (LOSS) INCOME PER SHARE OF COMMON STOCK - BASIC AND DILUTED | |||
Loss from continuing operations | $ (0.65) | $ (0.29) | $ (0.29) |
Income from discontinued operations | 0 | 0.9 | |
Net (loss) income per share of common stock | $ (0.65) | $ (0.29) | $ 0.61 |
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK USED IN COMPUTING LOSS PER SHARE OF COMMON STOCK, BASIC AND DILUTED | 131,085,958 | 101,387,704 | 94,922,390 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | |
Balance at Dec. 31, 2014 | $ (55,601) | $ 94 | $ 185,633 | $ (241,328) | |
Balance (in shares) at Dec. 31, 2014 | 93,603,819 | ||||
Issuance of common stock, net of issuance cost | 6,101 | $ 6 | 6,095 | ||
Issuance of common stock, net of issuance cost (in shares) | 5,649,079 | ||||
Share-based compensation related to stock options | 1,273 | 1,273 | |||
Share-based compensation related to restricted stock award, net of forfeitures | 529 | 529 | |||
Share-based compensation related to restricted stock award, net of forfeitures (in shares) | (2,501) | ||||
Exercise of options granted to employee | 534 | [1] | 534 | ||
Exercise of options granted to employee (in shares) | 550,000 | ||||
Net loss from continuing operations | (27,282) | (27,282) | |||
Net income loss from discontinued operations | 85,319 | 85,319 | |||
Balance at Dec. 31, 2015 | 10,873 | $ 100 | 194,064 | (183,291) | |
Balance (in shares) at Dec. 31, 2015 | 99,800,397 | ||||
Issuance of common stock, net of issuance cost | 6,848 | $ 24 | 6,824 | ||
Issuance of common stock, net of issuance cost (in shares) | 23,846,735 | ||||
Equity component of convertible notes | 685 | 685 | |||
Share-based compensation related to stock options | 920 | 920 | |||
Share-based compensation related to restricted stock award, net of forfeitures | 68 | [1] | 68 | ||
Share-based compensation related to restricted stock award, net of forfeitures (in shares) | 7,843 | ||||
Exercise of options granted to employee | 14 | [1] | 14 | ||
Exercise of options granted to employee (in shares) | 479,110 | ||||
Net loss from continuing operations | (29,176) | (29,176) | |||
Net income loss from discontinued operations | (189) | (189) | |||
Balance at Dec. 31, 2016 | (9,957) | $ 124 | 202,575 | (212,656) | |
Balance (in shares) at Dec. 31, 2016 | 124,134,085 | ||||
Equity component of convertible notes | 1,315 | 1,315 | |||
Share-based compensation related to stock options | 337 | 337 | |||
Reclassification of embedded derivative | 43,634 | 43,634 | |||
Convertible note conversions | 18,654 | $ 20 | 18,634 | ||
Convertible note conversions (in shares) | 19,594,712 | ||||
Net loss from continuing operations | (85,276) | (85,276) | |||
Net income loss from discontinued operations | |||||
Balance at Dec. 31, 2017 | $ (31,293) | $ 144 | $ 266,495 | $ (297,932) | |
Balance (in shares) at Dec. 31, 2017 | 143,728,797 | ||||
[1] | Represents an amount of less than $1 thousand. |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Parenthetical] | 12 Months Ended |
Dec. 31, 2015shares | |
Restricted Stock [Member] | |
Share-based compensation related to restricted stock award, forfeitures, (in shares) | 2,501 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (85,276) | $ (29,365) | $ 58,037 |
(Loss) income from discontinued operations | (189) | 85,319 | |
Loss from continuing operations | (85,276) | (29,176) | (27,282) |
Adjustments required to reconcile net (loss) income to net cash used in operating activities: | |||
Share based compensation | 337 | 988 | 1,802 |
Depreciation | 1,920 | 1,983 | 2,370 |
Financial (income) expenses, net (mainly exchange differences) | (40) | 13 | 124 |
Changes in accrued liability for employee rights upon retirement | (18) | 10 | 59 |
(Gain) loss on amounts funded in respect of employee rights upon retirement | (21) | 7 | 18 |
Loss (gain) on sale of fixed assets | 6 | (7) | (2) |
Loss (gain) on extinguishment of convertible notes | 1,325 | (14,063) | |
Net income in connection with conversions of convertible notes | (116) | ||
Change in fair value of convertible notes embedded derivative | 38,061 | 6,473 | |
Amortization of debt issuance costs and debt discount | 2,334 | 568 | 445 |
Issuance of shares for interest payment in connection with conversions of convertible notes | 2,391 | ||
Changes in operating assets and liabilities: | |||
Increase (decrease) in deferred revenues (including non-current potion) | 26,014 | (411) | 362 |
(Increase) decrease in accounts receivable and other assets | 25 | (1,133) | 523 |
Decrease (increase) in inventories | (2,588) | 522 | (2,316) |
Increase (decrease) in accounts payable and accruals | 4,902 | 2,139 | (1,873) |
Increase in other long term liabilities | 750 | ||
Net cash used in continuing operations | (9,994) | (32,087) | (25,770) |
Net cash provided by (used in) discontinued operations | (11) | 1,486 | |
Net cash used in operating activities | (9,994) | (32,098) | (24,284) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (971) | (849) | (464) |
Proceeds from sale of property and equipment | 3 | 20 | 3 |
(Increase) decrease in restricted deposit | (146) | (106) | 45 |
Amounts funded in respect of employee rights upon retirement, net | (5) | (32) | (96) |
Net cash used in continuing operations | (1,119) | (967) | (512) |
Net cash provided by discontinued operations | 39,899 | ||
Net cash (used in) provided by investing activities | (1,119) | (967) | 39,387 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net payment for conversion of convertible notes | (10,961) | ||
Net proceeds from issuance of convertible notes | 9,542 | 19,681 | |
Issuance of shares, net of issuance cost | 6,101 | ||
Exercise of options | 14 | 534 | |
Net cash (used in) provided by financing activities | (1,419) | 19,695 | 6,635 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 414 | 277 | (131) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (12,118) | (13,093) | 21,607 |
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 63,281 | 76,374 | 54,767 |
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF YEAR | 51,163 | 63,281 | 76,374 |
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS: | |||
Purchase of property and equipment | 526 | 595 | 489 |
Issuance of promissory note | 4,301 | ||
Issuance of common stock, net of issuance cost | 6,848 | ||
Convertible note conversions | 16,263 | ||
SUPPLEMENTARY DISCLOSURE ON CASH FLOWS | |||
Interest paid | $ 4,854 | $ 3,659 | $ 3,105 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES a. General Protalix BioTherapeutics, Inc. (collectively with its subsidiaries, the “Company”), and its wholly-owned subsidiaries, Protalix Ltd. and Protalix B.V. (the “Subsidiaries”), are biopharmaceutical companies focused on the development and commercialization of recombinant therapeutic proteins based on the Company’s proprietary ProCellEx ® ® The Company’s product pipeline currently includes, among other candidates: (1) pegunigalsidase alfa, or PRX-102, a therapeutic protein candidate for the treatment of Fabry disease, a rare, genetic lysosomal disorder; (2) alidornase alfa, or PRX-110, a proprietary plant cell recombinant human Deoxyribonuclease 1, or DNase, under development for the treatment of Cystic Fibrosis, to be administered by inhalation; and (3) OPRX-106, the Company’s oral antiTNF product candidate which is being developed as an orally-delivered anti-inflammatory treatment using plant cells as a natural capsule for the expressed protein. Obtaining marketing approval with respect to any product candidate in any country is directly dependent on the Company’s ability to implement the necessary regulatory steps required to obtain such approvals. The Company cannot reasonably predict the outcome of these activities. Since its approval by the FDA, taliglucerase alfa has been marketed by Pfizer Inc. (“Pfizer”), as provided in the exclusive license and supply agreement by and between Protalix Ltd. and Pfizer, which is referred to herein as the Pfizer Agreement. In October 2015, the Company entered into an Amended and Restated Exclusive License and Supply Agreement (the “Amended Pfizer Agreement”) which amends and restates the Pfizer Agreement in its entirety. Pursuant to the Amended Pfizer Agreement, the Company sold to Pfizer its share in the collaboration created under the Pfizer Agreement for the commercialization of Elelyso in exchange for a cash payment equal to $ 36.0 100 On June 18, 2013, the Company entered into a Supply and Technology Transfer Agreement (the “Brazil Agreement”) with Fundação Oswaldo Cruz (“Fiocruz”), an arm of the Brazilian Ministry of Health for taliglucerase alfa. Fiocruz’s purchases of alfataliglicerase to date have been significantly below certain agreed upon purchase milestones and, accordingly, the Company has the right to terminate the Brazil Agreement. Notwithstanding, the Company is, at this time, continuing to supply alfataliglicerase to Fiocruz under the Brazil Agreement, and patients continue to be treated with alfataliglicerase in Brazil. Approximately 10 In 2017, the Company received a purchase order from the Brazilian Ministry of Health (the “Brazilian Ministry”) for the purchase of alfataliglicerase for the treatment of Gaucher patients in Brazil for consideration of approximately $24.3 million. The purchase order consists of a number of shipments in increasing volumes. Shipments started in June 2017. The Company has recorded revenues of $7.1 million for sales of alfataliglicerase to Fiocruz in 2017. On October 19, 2017, Protalix Ltd. and Chiesi Farmaceutici S.p.A. (“Chiesi”) entered into an Ex-US license (the “Chiesi Agreement”) pursuant to which Chiesi was granted an exclusive, license for all markets outside of the United States to commercialize pegunigalsidase alfa. Under the terms and conditions of the Chiesi Agreement, Protalix Ltd. retained the right to commercialize pegunigalsidase in the United States. Under the Chiesi Agreement, Chiesi made an upfront payment to Protalix Ltd. of $ 25.0 25 10 320 Under the terms of the agreement, Protalix Ltd. will manufacture all of the PRX-102 needed for all purposes under the agreement, subject to certain exceptions, and Chiesi will purchase pegunigalsidase alfa from Protalix, subject to certain terms and conditions. Chiesi will make tiered payments of 15 35 Based on its current cash resources and commitments, the Company believes it will be able to maintain its current planned development activities and the corresponding level of expenditures for at least 12 months from the date of approval of the financial statements as of December 31, 2017 b. Basis of presentation The Company’s financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). c. Use of estimates in the preparation of financial statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. d. Functional currency The dollar is the currency of the primary economic environment in which the operations of the Company and its Subsidiaries are conducted. Most of the Company’s revenues are derived in dollars. Most of the Company’s expenses and capital expenditures are incurred in dollars, and the major source of the Company’s financing has been provided in dollars. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items (stated below) reflected in the statements of operations, the following exchange rates are used: (i) for transactions exchange rates at the transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization, etc.) historical exchange rates. Currency transaction gains and losses are recorded as financial income or expenses, as appropriate. e. Cash equivalents The Company considers all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three months or less from the date of purchase, that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash, to be cash equivalents. f. Inventories Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials and purchased products is determined using the “moving average” basis. Cost of finished products is determined as follows: the value of the raw and packaging materials component is determined primarily using the “moving average” basis; the value of the labor and overhead component is determined on an average basis over the production period. Inventory is written down for estimated obsolescence based upon management assumptions about future demand and market conditions. g. Property and equipment 1. Property and equipment are stated at cost, net of accumulated depreciation and amortization. 2. Years Laboratory equipment 5 Furniture 10 15 Computer equipment 3 Leasehold improvements are amortized by the straight-line method over the expected lease term, which is shorter than the estimated useful life of the improvements. h. Impairment in value of long-lived assets The Company tests long-lived assets for impairment if an indication of impairment exists. If the sum of expected future cash flows of definite life assets (undiscounted and without interest charges) is less than the carrying amount of such assets, the Company recognizes an impairment loss, and writes down the assets to their estimated fair values. i. Income taxes 1. Deferred income taxes Deferred taxes are determined utilizing the assets and liabilities method based on the estimated future tax effects of the differences between the financial accounting and tax bases of assets and liabilities under the applicable tax laws. Deferred tax balances are computed using the tax rates expected to be in effect when those differences reverse. A valuation allowance in respect of deferred tax assets is provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has provided a full valuation allowance with respect to its deferred tax assets. The Company used tax rates of 39%, 24% and 23%. See note 10. 2. Uncertainty in income taxes Tax benefits recognized in the financial statements are those that the Company’s management deems at least more likely than not to be sustained, based on technical merits. The amount of benefits recorded for these tax benefits is measured as the largest benefit the Company’s management deems more likely than not to be sustained. j. Revenue Recognition 1. Revenues from supply agreements and from selling products The Company recognizes revenues from supply agreements and from selling products upon delivery, when the sales price is fixed or determinable and collectability is reasonably assured. 2. Revenues from Chiesi Agreement As Chiesi is obligated to acquire pegunigalsidase alfa from the Company and the development services are not considered to have a stand-alone value, development and manufacturing of a product to be commercialized by Chiesi is viewed as one unit of account. Since there is only one unit of account, all payments received by Chiesi prior to the satisfaction of Protalix's obligation will be deferred. Therefore, the $ 25 k. Research and development costs Research and development costs are expensed as incurred and consist primarily of personnel, subcontractors and consultants (mainly in connection with clinical trials), facilities, equipment and supplies for research and development activities. Grants received by the Israeli Subsidiary from the National Authority for Technological Innovation (“NATI”), which has replaced many of the functions of the Office of the Chief Scientist of Israel’s Ministry of Industry, Trade and Labor (the “OCS”), are recognized when the grant becomes receivable, provided there is reasonable assurance that the Company or the Subsidiaries will comply with the conditions attached to the grant and there is reasonable assurance the grant will be received. The grant is deducted from the research and development expenses as the applicable costs are incurred. In connection with purchases of assets, amounts assigned to intangible assets to be used in a particular research and development project that have no alternative future use are charged to research and development costs at the purchase date. Nonrefundable advance payments for goods or services that will be used or rendered for future research and development activities are deferred and amortized over the period that the goods are consumed or the related services are performed. l. Concentration of credit risks and trade receivable Financial instruments that potentially subject the Company to concentration of credit risk consist principally of bank deposits. The Company deposits these instruments with highly rated financial institutions, mainly in Israeli banks, and, as a matter of policy, limits the amounts of credit exposure to any one financial institution. The Company has not experienced any credit losses in these accounts and does not believe it is exposed to any significant credit risk on these instruments. The Company’s trade receivables represent amounts to be received from Pfizer, Brazil and Chiesi. The Company does not require Pfizer, Brazil or Chiesi to post collateral with respect to receivables. m. Share-based compensation The Company accounts for employee’s share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense over the requisite service period. The Company elected to recognize compensation cost for an award with only service conditions that has a graded vesting schedule using the accelerated method based on the multiple-option award approach. When stock options are granted as consideration for services provided by consultants and other non-employees, the grant is accounted for based on the fair value of the stock options issued. Options granted are measured on a final basis at the end of the related service period and is recognized over the related service period using the straight-line method. n. Net (loss) earnings per share Basic and diluted loss per share (“LPS”) are computed by dividing net loss by the weighted average number of shares of the Company’s Common Stock, par value $ 0.001 Diluted LPS is calculated in continuing operations. The calculation of diluted LPS does not include 19,778,424 23,532,492 76,848,199 o. Convertible notes All outstanding convertible notes are accounted for using the guidance set forth in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) 815 requiring that the Company determine whether the embedded conversion option must be separated and accounted for separately. ASC 470-20 regarding debt with conversion and other options requires the issuer of a convertible debt instrument that may be settled in cash upon conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The Company accounts for the 2013 Notes (as defined in note 8a) as a liability, on an aggregated basis, in their entirety. The 2016 Notes (as defined in note 8b) were accounted for partially as liability and equity components of the instrument and partially as a debt host contract with an embedded derivative resulting from the conversion feature. During the year ended December 31, 2017, the embedded derivative was reclassified to additional paid in capital, see note 8. Issuance costs regarding the issuance of the 2016 Notes and the 2017 Notes (as defined in note 8c) were allocated to the liability, equity component, derivative and shares based on their relative fair values. Issuance costs that were allocated to the liability are amortized using the effective interest rate, other than issuance costs that were allocated to the derivative which were expensed immediately. The debt discount and debt issuance costs regarding the issuance of the 2013 Notes are deferred and amortized over the 2013 Notes period (5 years). p. Recently adopted standards In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718)” (“ASU 2016-09”) which simplifies certain aspects of the accounting for share-based payments, including accounting for income taxes, classification of awards as either equity or liabilities, classification on the statement of cash flows as well as allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted in any annual or interim period for which financial statements have not yet been issued, and all amendments in the ASU that apply must be adopted in the same period. The Company adopted this standard in the fourth quarter of 2016. The Company elected to account for forfeitures as they occur. The implementation of this ASU did not have a material impact on the consolidated financial statements. q. Recently issued accounting pronouncements In May 2014, the FASB issued guidance on revenues from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions require capitalization of certain contracts costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount timing and uncertainty of revenues and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The implementation of this ASU did not have a material impact on the consolidated financial statements. In January 2016, the FASB issued ASU, No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance is effective in annual reporting periods beginning after December 15, 2017. The implementation of this ASU is expected to have no material impact on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. |
COMMERCIALIZATION AGREEMENTS
COMMERCIALIZATION AGREEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
COMMERCIALIZATION AGREEMENTS [Abstract] | |
COMMERCIALIZATION AGREEMENTS | NOTE 2 - COMMERCIALIZATION AGREEMENTS 1. On November 30, 2009, Protalix Ltd. and Pfizer entered into the Pfizer Agreement (as amended in June 2013) pursuant to which Pfizer was granted an exclusive, worldwide license to develop and commercialize taliglucerase alfa, except for Israel and Brazil. Under the Pfizer Agreement Protalix was entitled to 40 In October 2015, the Company entered into the following agreements with Pfizer: Amended Pfizer Agreement - Pursuant to the amendment, the Company granted Pfizer an exclusive license in the entire world, including Israel but excluding Brazil. Pfizer acquired all the information, knowledge and permission to manufacture and sell Elelyso. Protalix also agreed to provide Pfizer with: a. Manufacturing and supply of the drug substance for its incorporation into the licensed product in consideration of an agreed price per unit. b. Assistance in arranging for the manufacture of the drug substance by Pfizer or by alternative supplier chosen by Pfizer in consideration of an agreed hourly rate plus reimbursement of expenses. Stock Purchase Agreement - the Company issued 5,649,079 Promissory note as of the date of the amendment, the Company owed Pfizer $ 4.3 The Amended Pfizer Agreement resulted in a discontinued operation as defined under ASU 2014-08 because it represented a strategic shift for the Company that has a major effect on the entity’s operations and financial results. Revenues from the Pfizer Agreements as well as revenues from sales of Elelyso in Israel were presented as discontinued operations. See note 12. 2. In October 2017, Protalix Ltd. entered into the Chiesi Agreement with respect to the commercialization of pegunigalsidase alfa (hereafter the drug) for treatment of the Fabry disease. Under the terms of the Chiesi Agreement, Protalix Ltd. granted to Chiesi exclusive licensing rights for the commercialization of the drug for all markets outside of the United States. Protalix Ltd. maintains the exclusive commercialization rights to the drug in the United States. Protalix Ltd. will be mainly responsible for (i) continuing the development of the drug until a regulatory approval is granted and (ii) manufacture and supply the drug to Chiesi, based on Chiesi’s requests. The consideration consists of the following: a. Upfront, non-refundable payment of $ 25 b. Additional payments of up to $ 25 10 c. Milestone payments of up to $ 320 d. Additional payments as consideration for the supply of the drug. The payment will vary from 15 35 e. Protalix will be the sole manufacturer of the drug. Chiesi does not have sublicensing rights (except for certain territories). The Company analyzed the agreement terms and concluded that the Chiesi Agreement qualifies as a contract with customer under ASC 605. Chiesi is a customer of the Company as it contracted with the entity to obtain goods or services that are an output of the entity’s ordinary activities in exchange for consideration. As Chiesi is obligated to acquire pegunigalsidase alfa from the Company and the development services are not considered to have a stand-alone value, development and manufacturing of a product to be commercialized by Chiesi is viewed as one unit of account. Therefore, all payments received prior to the fulfillment of the one unit of account will be deferred until the commencement of commercial manufacturing. The Company will recognize revenues after the commencement of the drug supply over the period of the product’s sales according to the Company’s best estimate. 3. On June 18, 2013, the Company entered into the Brazil Agreement with Fiocruz for taliglucerase alfa. Fiocruz’s purchases of alfataliglicerase to date have been significantly below certain agreed upon purchase milestones and, accordingly, the Company has the right to terminate the Brazil Agreement. Notwithstanding, the Company is, at this time, continuing to supply alfataliglicerase to Fiocruz under the Brazil Agreement, and patients continue to be treated with alfataliglicerase in Brazil. Approximately 10% of adult Gaucher patients in Brazil are currently treated with alfataliglicerase. The Company is discussing with Fiocruz potential actions that Fiocruz may take to comply with its purchase obligations and, based on such discussions, the Company will determine what it believes to be the course of action that is in the best interest of the Company. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 3 - PROPERTY AND EQUIPMENT a. December 31, (U.S. dollars in thousands) 2016 2017 Laboratory equipment $ 16,265 $ 16,561 Furniture and computer equipment 2,342 2,438 Leasehold improvements 15,678 16,123 Equipment under construction 19 19 $ 34,304 $ 35,141 Less accumulated depreciation and amortization (25,601) (27,465) $ 8,703 $ 7,676 b. Depreciation in respect of property and equipment totaled approximately $ 2.4 2.0 1.9 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 4 - INVENTORIES Inventories at December 31, 2016 and 2017 consisted of the following: December 31, (U.S. dollars in thousands) 2016 2017 Raw materials $ 2,591 $ 3,838 Work in progress 395 485 Finished goods 2,259 3,510 Total inventory $ 5,245 $ 7,833 |
LIABILITY FOR EMPLOYEE RIGHTS U
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT | 12 Months Ended |
Dec. 31, 2017 | |
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT [Abstract] | |
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT | NOTE 5 - LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT The Israeli Subsidiary is required to make a severance payment upon dismissal of an employee or upon termination of employment in certain circumstances. The severance pay liability to the employees (based upon length of service and the latest monthly salary - one month’s salary for each year employed) is recorded on the Company’s balance sheets under “Liability for employee rights upon retirement.” The liability is recorded as if it were payable at each balance sheet date on an undiscounted basis. The liability is funded in part from the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. The amounts used to fund these liabilities are included in the Company’s balance sheets under “Funds in respect of employee rights upon retirement.” These policies are the Company’s assets. However, under labor agreements and subject to certain limitations, any policy may be transferred to the ownership of the individual employee for whose benefit the funds were deposited. In the years ended December 31, 2015, 2016 and 2017, the Company deposited approximately $ 168,000 164,000 166,000 In accordance with the current employment agreements with certain employees, the Company makes regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s rights upon retirement. The Company is fully relieved from any severance pay liability with respect to each such employee after it makes the payments on behalf of the employee. The liability accrued in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected in the Company’s balance sheets, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies (the “Contribution Plans”). The amounts of severance pay expenses were approximately $ 800,000 842,000 906,000 675,000 675,000 746,000 21,000 The Company expects to contribute approximately $ 830,000 664,000 During the five-year period following December 31, 2017, the Company expects to pay future benefits to three employees upon each such employee’s normal retirement age. The Company anticipates that the benefits payable will be approximately $ 250,000 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS [Abstract] | |
COMMITMENTS | NOTE 6 - COMMITMENTS a. Royalty Commitments 1. The Company is obligated to pay royalties to the National Authority for Technological Innovation (“NATI”) on proceeds from the sale of products developed from research and development activities that were funded, partially, by grants from NATI or its predecessor, the Office of the Chief Scientist of the Israeli Department of Labor (“OCS”). At the time the grants were received, successful development of the related projects was not assured. In the case of failure of a project that was partly financed as described above, the Company is not obligated to pay any such royalties or repay funding received from NATI or the OCS. Under the terms of the applicable funding arrangements, royalties of 3 6 100 300 Royalty expenses to NATI or the OCS are included in the statement of operations as a component of the cost of revenues both in continuing and discontinued operations and were approximately $ 2.2 288,000 1,384,000 At December 31, 2016 and 2017, the maximum total royalty amount payable by the Company under these funding arrangements is approximately $ 38.5 42.2 100 2. The Company is a party to certain research and license agreements. Under the agreements, the Company is obligated to pay royalties at varying rates from its future revenues. The aggregate royalties payable under all of the agreements is equal to a varying range of percentages of net sales of licensed products. Royalty expenses under the agreements are included in the statement of operations as a component of the cost of revenues both in continuing and discontinued operations and were approximately $ 51,000 286,000 0 Under each agreement, the Company is also obligated to pay milestone, licensing and other payments to the counterparties of the agreement. The payments under the agreements are for varying amounts and are subject to varying conditions. If all of the contingencies with respect to milestone payments under the research and license agreements are met, the aggregate milestone payments total payable would be approximately $ 14.3 0 300,000 $ 0 None of the agreements has a fixed termination date. Subject to earlier termination for other reasons, each agreement terminates after a certain number of years following the first commercial sale of any licensed product under the agreement or after a certain number of years without the initiation of commercial sales of any product under the agreement. b. Subcontracting Agreements The Company has entered into sub-contracting agreements with several clinical providers and consultants in Israel, the United States and certain other countries in connection with its primary product development process. As of December 31, 2017, total commitments under said agreements were approximately $ 19.2 c. Lease Agreements The Company is a party to a number of lease agreements for its facilities, the latest of which has been extended until 2021. The Company has the option to extend certain of such agreements on two additional occasions for additional five-year periods each, for a total of 10 additional years. Under the leases, the aggregate monthly rental payments are approximately $ 65,000 306,000 783,000 717,000 717,000 580,000 1.0 775,000 d. Vehicle Lease and Maintenance Agreements The Company entered into several three-year lease and maintenance agreements for vehicles which are regularly amended as new vehicles are leased. The current monthly lease fees aggregate approximately $ 52,000 565,000 385,000 186,000 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
SHARE CAPITAL [Abstract] | |
SHARE CAPITAL | NOTE 7 - SHARE CAPITAL a. Rights of the Company’s Common Stock The Company’s Common Stock is listed on the NYSE American and on the Tel Aviv Stock Exchange. Each share of Common Stock is entitled to one vote. The holders of shares of Common Stock are also entitled to receive dividends whenever funds are legally available, when and if declared by the Board of Directors. Since its inception, the Company has not declared any dividends. b. Stock based compensation On December 14, 2006, the Board of Directors adopted the Protalix BioTherapeutics, Inc. 2006 Stock Incentive Plan, as amended (the “Plan”). The Plan has since been amended to, among other things, increase the number of shares of common stock available under the Plan to 13,841,655 As of December 31, 2017, 2,554,075 For purposes of determining the fair value of the options and restricted stock granted to employees and non-employees, the Company’s management uses the fair value of the Common Stock. From January 1, 2015 through December 31, 2017, the Company granted options and shares of restricted stock to certain employees and non-employees as follows: 1. Options and restricted stock granted to employees: a) Year of No. of options Exercise Vesting period Fair value Expiration 2015 1,909,000 $ 1.72 4 years $ 1,900 10 years Set forth below are grants made by the Company to employees (including related parties) during the three-year period ended December 31, 2017 (such grants appear in the table above): On March 23, 2015, the Company’s compensation committee approved the grant of a 10 1,909,000 1.72 25 1.9 0 61.7 1.6 b) The total unrecognized compensation cost of employee stock options at December 31, 2017 is approximately $ 130,000 0.54 The total cash received from employees as a result of employee stock option exercises for the years ended December 31, 2015, 2016 and 2017 was approximately $ 534,000 14,000 0 2. Options granted to consultants, directors, and other service providers: During the three years ended December 31, 2017 there were no option grants by the Company to its consultants, directors, and other service providers. In addition, during the three years ended December 31, 2017, there were no option exercises by any of the Company’s consultants, directors, and other service providers and, consequently, no shares of Common Stock were issued in connection with exercises of options by, nor was any cash received from, the Company’s consultants, directors, and other service providers during such period. 3. A summary of share option plans, and related information, under all of the Company’s equity incentive plans for the years ended December 31, 2015, 2016 and 2017 is as follows: a. Options granted to employees: Year ended December 31, 2015 2016 2017 Weighted Weighted Weighted Number average Number Average Number average of exercise of Exercise of exercise options price options Price options price Outstanding at beginning of year 5,870,309 $ 3.770 6,952,293 $ 3.363 4,884,211 $ 3.617 Changes during the year: Granted 1,909,000 1.72 Forfeited and Expired 277,016 5.395 1,514,957 3.748 154,594 4.004 Exercised (*) 550,000 0.972 553,125 0.067 Outstanding at end of year 6,952,293 $ 3.363 4,884,211 $ 3.617 4,729,617 $ 3.604 Exercisable at end of year 4,477,043 $ 4.182 3,498,492 $ 4.296 4,457,461 $ 3.696 (*) The total intrinsic value of options exercised during the years ended December 31, 2015, 2016 and 2017, was approximately $ 675,000 213,000 0 Restricted stock granted to employees: Year ended December 31, 2015 2016 Number of restricted stock Outstanding at beginning of year 386,124 127,874 Changes during the year: Vested 255,749 127,874 Forfeited 2,501 - Outstanding at end of year 127,874 - c. Year ended December 31, 2015 2016 2017 Number Number Number of Weighted of Weighted of Weighted options/ average options/ average options/ average restricted exercise restricted exercise restricted exercise stock price stock price stock price Outstanding at beginning of Year 1,208,592 $ 6.136 637,209 $ 11.638 208,000 $ 3.156 Changes during the year: Expired 466,883 0.001 429,209 15.748 8,000 0.001 Vested restricted stock 104,500 Outstanding at end of year 637,209 11.638 208,000 3.156 200,000 3.282 Exercisable at end of year 549,709 $ 12.954 170,500 $ 3.109 200,000 $ 3.282 d. December 31, 2017 Options outstanding Options exercisable Exercise Number of Weighted Number of Weighted n/a (Restricted Stock) n/a n/a $ 1.720 1,720,685 7.22 1,617,279 7.22 $ 2.350 40,000 0.81 40,000 0.81 $ 2.370 900,000 6.74 731,250 6.74 $ 2.650 211,682 1.15 211,682 1.15 $ 3.020 50,000 0.10 50,000 0.10 $ 3.370 150,000 6.56 150,000 6.56 $ 5.000 949,250 0.10 949,250 0.10 $ 6.900 680,000 2.15 680,000 2.15 $ 7.550 160,000 2.65 160,000 2.65 $ 9.660 68,000 2.83 68,000 2.83 4,929,617 4,657,461 e. Year ended December 31, (U.S. dollars in thousands) 2015 2016 2017 Research and development expenses $ 904 $ 571 $ 182 Selling, general and administrative expenses 898 417 155 $ 1,802 $ 988 $ 337 c. Private and 144A Offerings 1. On October 12, 2015, the Company completed a private offering of 5,649,079 2. On December 7, 2016, the Company exchanged with certain existing note holders $ 54.052 4.50 40.186 23,846,735 3. On July 24, 2017, the Company entered into a Note Purchase Agreement with certain institutional investors relating to the private issuance and sale by the Company of $ 10 7.5 2021 9.0 4.50 2018 8.55 4.50 2022 |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2017 | |
CONVERTIBLE NOTES [Abstract] | |
CONVERTIBLE NOTES | NOTE 8 - CONVERTIBLE NOTES a. 4.5% Convertible Notes (“2013 Notes”) On September 18, 2013, the Company completed a private placement of $ 69.0 9.0 4.50 54.1 9.0 5.9 Holders may convert their 2013 Notes at any time prior to the close of business on the business day immediately preceding September 15, 2018. The initial conversion rate for the 2013 Notes is 173.6593 5.76 Year ended December 31, (U.S. Dollars in thousands) 2015 2016 2017 Contractual interest expense $ 3,105 $ 2,943 $ 501 Amortization of debt issuance costs and debt discount 444 421 71 Total $ 3,549 $ 3,364 $ 572 b. 7.5% Convertible Notes (“2016 Notes”) On December 1, 2016, the Company entered into a note purchase agreement with institutional investors, which held part of the 2013 Notes (the “2016 Purchasers”), relating to the sale by the Company of $ 22.5 7.50 54.1 40.186 23,846,735 19.7 In connection with the completion of the exchange and the private placement, the Company entered into an indenture (the “2016 Indenture”) with The Bank of New York Mellon Trust Company, N.A., as trustee, governing the 2016 Notes. The 2016 Notes accrue interest at a rate of 7.50 November 15, 2021 On July 24, 2017, the Company entered into another note purchase agreement with certain institutional investors relating to the private issuance and sale by the Company of $ 10.0 9.5 Holders may convert their 2016 Notes at any time. The initial conversion rate for the 2016 Notes is 1,176.4706 shares of the Common Stock for each $ 1,000 0.85 During 2017, approximately $13.6 million aggregate principal amount of the Company’s 2016 Notes were converted. Settlement of the conversions resulted in the issuance of 8,827,624 11 59.1 Prior to the maturity date, the Company may redeem in cash: a) any or all of the 2016 Notes if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days exceeds 150% of the conversion price on each applicable trading day, or b) all of the 2016 Notes then outstanding if the aggregate principal amount of the 2016 Notes then outstanding is less than 15% of the aggregate principal amount of the notes issued. No redemption was made during the years 2016 and 2017. The 2016 Notes are guaranteed by the Restricted Subsidiaries (as defined in the 2016 Indenture) and are secured by a first-priority security interest in all of the present and after-acquired assets of the Company and each of the Restricted Subsidiaries (the “Collateral”), including, but not limited to, (i) 100% of the capital stock of the Guarantors (as defined in the 2016 Indenture) and each Restricted Subsidiary of the Company that is held by the Company or any Restricted Subsidiary, (ii) intellectual property, including all copyrights, copyright licenses, patents, patent licenses, software, trademarks, trademark licenses and trade secrets and other proprietary information, including, but not limited to, domain names, (iii) all cash, deposit accounts, securities accounts, commodities accounts and contract rights, (iv) all real property and leased property, subject to applicable minimum thresholds, as set forth in the 2016 Indenture, and (v) all other tangible and intangibles of the Company and the Guarantors. In connection with the grant of such liens, the Company entered into certain agreements with both Wilmington Savings Fund Society, FSB, as collateral agent in the United States, and with Altshuler Shaham Trusts Ltd., as security trustee in Israel. The 2016 Indenture restricts the ability of the Company, the Subsidiaries and any future subsidiaries to make certain investments, including transfers of the Company’s assets that constitute collateral securing the 2016 Notes, in its existing and future foreign subsidiaries, subject to certain exceptions. Upon (i) the occurrence of a fundamental change (as defined in the 2016 Indenture) or (ii) if the Company calls the 2016 Notes for redemption as described below (either event, a “make-whole fundamental change”) and a holder elects to convert its 2016 Notes in connection with such make-whole fundamental change, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares (the “Additional Shares”). In no event will the conversion rate exceed the maximum conversion rate, which is 1,787.3100 shares per $1,000 principal amount of 2016 Notes, which amount is inclusive of repayment of the principal of the 2016 Notes. If a fundamental change occurs at any time, holders will have the right, at their option, to require the Company to purchase for cash any or all of the 2016 Notes, or any portion of the principal amount thereof, that is equal to $ 1,000 For accounting purposes, since the terms of the 2013 Notes and the 2016 Notes are substantially different, the 2016 Exchange Agreement was considered as an extinguishment, which in essence means recording a gain due to the 2013 Notes that were exchanged for the 2016 Notes recorded at fair value as of the closing date. The gain on extinguishment of $ 14.1 As the settlement upon conversion was subject to compliance with the listing standards of the NYSE American, until the Company’s stockholders’ approval was obtained, the Company was prohibited by these rules from issuing shares in excess of 20 the issuance of shares in excess of 20% of its outstanding shares. On April 12, 2017, the Company’s stockholders approved the issuance of shares of the Company’s Common Stock in excess of 20% of the Company’s outstanding shares of Common Stock to settle conversion requests and pay interest on the Company’s issued 7.5% convertible notes. 38,061 December 7, 2016 July 24, 2017 Stock price (USD) 0.3 0.77 Expected term 4.94 4.32 Risk free rate 1.86 % 1.74 % Volatility 54.12 % 63.79 % Yield 13.98 % 11.56 % Year Ended December 31, 2016 2017 (U.S. Dollars in thousands) Contractual interest expense $ 313 $ 4,434 Debt discount amortization 147 2,309 Gain on extinguishment (14,063) Change in fair value of convertible note embedded derivative 6,473 38,061 Interest payment in connection with conversions 3,918 Income in connection with conversions (1,643) Total $ (7,130) $ 47,079 c. 4.5% Convertible Notes Due 2022 (“2017 Notes”) On July 24, 2017, the Company entered into a privately negotiated exchange agreement (the “2017 Exchange Agreement”) with certain existing note holders identified therein to exchange $ 9.0 8.55 4.5 2022 275,000 As the terms of the 2013 Notes and the 2017 Notes are substantially different, the 2017 Exchange Agreement was considered an extinguishment of debt, which in essence means recording a loss due to the 2013 Notes that were exchanged for the 2017 Notes recorded at fair value as of the closing date. The Company recognized a loss of $1.3 million due to the extinguishment. July 24, 2017 Stock price (USD) 0.77 Expected term 4.57 Risk free rate 1.78 % Volatility 62.68 % Yield 15.21 % The Company accounts for the convertible notes as a liability, on an aggregated basis, in their entirely. The debt discount and debt issuance costs are deferred and amortized over the applicable convertible period. All of the 2017 Notes were converted during the year ended December 31, 2017 into 11,239,641 Year Ended December 31, 2017 (U.S. Dollars in thousands) Contractual interest expense $ 55 Debt premium amortization (46) Loss on extinguishment 1,325 Total $ 1,334 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENT [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 9 - FAIR VALUE MEASUREMENT The Company discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received from the sale of an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. The fair value of the financial instruments included in the working capital of the Company is usually identical or close to their carrying value. The fair value of the convertible notes derivative is based on level 3 measurement. The fair value of the remaining $ 5.9 59.1 5.7 76.6 The Company prepared a valuation of the fair value of the 2013 Notes and the 2016 Notes (a Level 3 valuation) as of December 31, 2017. The value of these notes were estimated by implementing the binomial model. The liability component was valued based on the Income Approach. 2013 Notes 2016 Notes Stock price (USD) 0.6612 0.6612 Expected term 0.71 3.88 Risk free rate 1.66 % 2.08 % Volatility 79.57 % 68.89 % Yield 11.86 % 11.89 % |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2017 | |
TAXES ON INCOME [Abstract] | |
TAXES ON INCOME | NOTE 10 - TAXES ON INCOME a. The Company Protalix BioTherapeutics, Inc. is taxed according to U.S. tax laws. The Company’s income is taxed in the United States at the rate of up to 39 On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, which among other changes reduces the federal corporate tax rate to 21 b. Protalix Ltd. The Israeli Subsidiary is taxed according to Israeli tax laws: 1. Tax rates The income of the Israeli Subsidiary, other than income from “Approved Enterprises,” is taxed in Israel at the regular corporate tax rates which were 26.5 In January 2016, the Law for the Amendment of the Income Tax Ordinance (No. 216) was published, enacting a reduction of corporate tax rate beginning in 2016 and thereafter, from 26.5 25 In December 2016, the Economic Efficiency Law (Legislative Amendments for Implementing the Economic Policy for the 2017 and 2018 Budget Year), 2016 was published, introducing a gradual reduction in corporate tax rate from 25 23 24 23 Capital gain is subject to capital gain tax according to the corporate tax rate for the year during which the assets are sold. 2. The Law for the Encouragement of Capital Investments, 1959 (the “Encouragement of Capital Investments Law”) Under the Encouragement of Capital Investments Law, including Amendment No. 60 to the Encouragement of Capital Investments Law as published in April 2005, by virtue of the “Approved Enterprise” or “Benefited Enterprise” status the Israeli Subsidiary is entitled to various tax benefits as follows: a. Reduced tax rates Income derived from the Approved Enterprise during a 10-year period commencing upon the year in which the enterprise first realizes taxable income is tax exempt, provided that the maximum period to which it is restricted by the Encouragement of Capital Investments Law has not elapsed. The Israeli Subsidiary has an “Approved Enterprise” plan since 2004 and “Benefited Enterprise” plan since 2009. The period of benefits in respect of the main enterprise of the Company has not yet commenced. The period during which the Company is entitled to benefits in connection with the Benefited Enterprise expires in 2021. If the Israeli Subsidiary subsequently pays a dividend out of income derived from the “Approved Enterprise” or “Benefited Enterprise” during the tax exemption period, it will be subject to tax on the gross amount distributed (including the company tax on these amounts), at the rate which would have been applicable had such income not been exempted. b. Accelerated depreciation The Israeli Subsidiary is entitled to claim accelerated depreciation, as provided by Israeli law, in the first five years of operation of each asset, in respect of buildings, machinery and equipment used by the Approved Enterprise and the Benefited Enterprise. c. Conditions for entitlement to the benefits The Israeli Subsidiary’s entitlement to the benefits described above is subject to its fulfilling the conditions stipulated by the law, rules and regulations published thereunder, and the instruments of approval for the specific investment in an approved enterprise. Failure by the Israeli Subsidiary to comply with these conditions may result in the cancellation of the benefits, in whole or in part, and the Subsidiary may be required to refund the amount of the benefits with interest. The Israeli Subsidiary received a final implementation approval with respect to its “Approved Enterprise” from the Investment Center. d. Amendment of the Law for the Encouragement of Capital Investments, 1959 In recent years, several amendments have been made to the Encouragement of Capital Investments Law which have enabled new alternative benefit tracks, subject to certain conditions. The Encouragement of Capital Investments Law was amended as part of the Economic Policy Law for the years 2011-2012, which was passed by the Israeli Knesset on December 29, 2010. The amendment sets alternative benefit tracks to those currently in effect under the provisions of the Encouragement of Capital Investments Law.On December 29, 2016, Amendment 73 to the Encouragement of Capital Investments Law was published. This amendment sets new benefit tracks, inter alia, “Preferred Technological Enterprise” and “Special Preferred Technological Enterprise” (the “Capital Investments Law Amendment”). The Company elected not to have the Capital Investments Law Amendment apply to the Company. c. Tax losses carried forward to future years As of December 31, 2017, the Company had aggregate net operating loss (“NOL”) carry-forwards equal to approximately $207 million that are available to reduce future taxable income as follows: 1. The Company The Company’s carry-forward NOLs, equal to approximately $23 million (as of December 31, 2016, approximately $20 million), may be restricted under Section 382 of the Internal Revenue Code (“IRC”). IRC Section 382 applies whenever a corporation with NOL experiences an ownership change. As a result of IRC Section 382, the taxable income for any post change year that may be offset by a pre-change NOL may not exceed the general IRC Section 382 limitation, which is the fair market value of the pre-change entity multiplied by the IRC long-term tax exempt rate. 2. Protalix Ltd. At December 31, 2017, the Israeli Subsidiary had approximately $184 million (as of December 31, 2016, approximately $133 million) of carry-forward NOLs that are available to reduce future taxable income with no limited period of use. d. Deferred income taxes: December 31, 2016 2017 (U.S. dollars in thousands) In respect of: Timing Differences $ 3,520 $ 11,335 Net operating loss carry forwards 38,515 47,033 Valuation allowance (42,035) (58,368) - - Deferred taxes are computed using the tax rates expected to be in effect when those differences reverse. e. Reconciliation of the theoretical tax expense to actual tax expense The main reconciling item between the statutory tax rate of the Company and the effective rate is the provision for a full valuation allowance in respect of tax benefits from carry forward tax losses due to the uncertainty of the realization of such tax benefits (see above). f. Tax assessments In accordance with the Income Tax Ordinance, as of December 31, 2017, all of Protalix Ltd.’s tax assessments through tax year 2012 are considered final. Jurisdiction: Years: Israel 2013-2017 United States (*) 2013-2017 (*) Includes federal, state and local (or similar provincial jurisdictions) tax positions. |
SUPPLEMENTARY FINANCIAL STATEME
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION [Abstract] | |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION | NOTE 11 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION December 31, 2016 2017 (U.S. dollars in thousands) a. Other assets: Institutions $ 333 $ 394 State of Israel (see note 6a) 1,046 195 Restricted deposit 477 623 Prepaid expenses 416 433 Assets of discontinued operation 327 215 Sundry 49 74 $ 2,648 $ 1,934 December 31, 2016 2017 (U.S. dollars in thousands) b. Accounts payable and accruals other: Payroll and related expenses $ 1,190 $ 1,386 Interest payable 511 645 Provision for vacation 1,399 1,650 Accrued expenses 3,575 4,802 Royalties payable 226 301 Property and equipment suppliers 595 526 $ 7,496 $ 9,310 Statements of operations: December 31, 2015 2016 2017 (U.S. dollars in thousands) Revenues: Pfizer $ 5,226 $ 12,181 Brazil $ 4,364 $ 3,973 $ 7,061 $ 4,364 $ 9,199 $ 19,242 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 12 - DISCONTINUED OPERATIONS As mentioned in note 2, the Company accounted for the termination of the Pfizer Agreement and the sale of the license as a discontinued operation, in accordance with ASU No. 2014-08. The following summarizes financial information related to the Company’s discontinued operations, in the Company’s consolidated statements of operations: 2015 2016 (U.S. dollars in thousands) REVENUES $ 48,674 $ 209 COMPANY’S SHARE IN COLLABORATION AGREEMENT 5,048 COST OF REVENUES (7,697) (373) GROSS PROFIT (LOSS) 46,025 (164) RESEARCH AND DEVELOPMENT EXPENSES (586) Less reimbursements 545 RESEARCH AND DEVELOPMENT EXPENSES, NET (41) SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (564) (25) NET (LOSS) INCOME FOR THE YEAR FROM DISCONTINUED OPERATIONS $ 45,420 $ (189) GAIN ON THE DISPOSAL 39,899 NET (LOSS) INCOME $ 85,319 $ (189) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13 - RELATED PARTY TRANSACTIONS Year ended December 31, 2015 2016 2017 (U.S. dollars in thousands) Compensation (including share based compensation) $ 631 $ 560 $ 499 |
SIGNIFICANT ACCOUNTING POLICI21
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
General | a. General Protalix BioTherapeutics, Inc. (collectively with its subsidiaries, the “Company”), and its wholly-owned subsidiaries, Protalix Ltd. and Protalix B.V. (the “Subsidiaries”), are biopharmaceutical companies focused on the development and commercialization of recombinant therapeutic proteins based on the Company’s proprietary ProCellEx ® ® The Company’s product pipeline currently includes, among other candidates: (1) pegunigalsidase alfa, or PRX-102, a therapeutic protein candidate for the treatment of Fabry disease, a rare, genetic lysosomal disorder; (2) alidornase alfa, or PRX-110, a proprietary plant cell recombinant human Deoxyribonuclease 1, or DNase, under development for the treatment of Cystic Fibrosis, to be administered by inhalation; and (3) OPRX-106, the Company’s oral antiTNF product candidate which is being developed as an orally-delivered anti-inflammatory treatment using plant cells as a natural capsule for the expressed protein. Obtaining marketing approval with respect to any product candidate in any country is directly dependent on the Company’s ability to implement the necessary regulatory steps required to obtain such approvals. The Company cannot reasonably predict the outcome of these activities. Since its approval by the FDA, taliglucerase alfa has been marketed by Pfizer Inc. (“Pfizer”), as provided in the exclusive license and supply agreement by and between Protalix Ltd. and Pfizer, which is referred to herein as the Pfizer Agreement. In October 2015, the Company entered into an Amended and Restated Exclusive License and Supply Agreement (the “Amended Pfizer Agreement”) which amends and restates the Pfizer Agreement in its entirety. Pursuant to the Amended Pfizer Agreement, the Company sold to Pfizer its share in the collaboration created under the Pfizer Agreement for the commercialization of Elelyso in exchange for a cash payment equal to $ 36.0 100 On June 18, 2013, the Company entered into a Supply and Technology Transfer Agreement (the “Brazil Agreement”) with Fundação Oswaldo Cruz (“Fiocruz”), an arm of the Brazilian Ministry of Health for taliglucerase alfa. Fiocruz’s purchases of alfataliglicerase to date have been significantly below certain agreed upon purchase milestones and, accordingly, the Company has the right to terminate the Brazil Agreement. Notwithstanding, the Company is, at this time, continuing to supply alfataliglicerase to Fiocruz under the Brazil Agreement, and patients continue to be treated with alfataliglicerase in Brazil. Approximately 10 In 2017, the Company received a purchase order from the Brazilian Ministry of Health (the “Brazilian Ministry”) for the purchase of alfataliglicerase for the treatment of Gaucher patients in Brazil for consideration of approximately $24.3 million. The purchase order consists of a number of shipments in increasing volumes. Shipments started in June 2017. The Company has recorded revenues of $7.1 million for sales of alfataliglicerase to Fiocruz in 2017. On October 19, 2017, Protalix Ltd. and Chiesi Farmaceutici S.p.A. (“Chiesi”) entered into an Ex-US license (the “Chiesi Agreement”) pursuant to which Chiesi was granted an exclusive, license for all markets outside of the United States to commercialize pegunigalsidase alfa. Under the terms and conditions of the Chiesi Agreement, Protalix Ltd. retained the right to commercialize pegunigalsidase in the United States. Under the Chiesi Agreement, Chiesi made an upfront payment to Protalix Ltd. of $ 25.0 25 10 320 Under the terms of the agreement, Protalix Ltd. will manufacture all of the PRX-102 needed for all purposes under the agreement, subject to certain exceptions, and Chiesi will purchase pegunigalsidase alfa from Protalix, subject to certain terms and conditions. Chiesi will make tiered payments of 15 35 Based on its current cash resources and commitments, the Company believes it will be able to maintain its current planned development activities and the corresponding level of expenditures for at least 12 months from the date of approval of the financial statements as of December 31, 2017 |
Basis of presentation | b. Basis of presentation The Company’s financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). |
Use of estimates in the preparation of financial statements | c. Use of estimates in the preparation of financial statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. |
Functional currency | d. Functional currency The dollar is the currency of the primary economic environment in which the operations of the Company and its Subsidiaries are conducted. Most of the Company’s revenues are derived in dollars. Most of the Company’s expenses and capital expenditures are incurred in dollars, and the major source of the Company’s financing has been provided in dollars. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items (stated below) reflected in the statements of operations, the following exchange rates are used: (i) for transactions exchange rates at the transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization, etc.) historical exchange rates. Currency transaction gains and losses are recorded as financial income or expenses, as appropriate. |
Cash equivalents | e. Cash equivalents The Company considers all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three months or less from the date of purchase, that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash, to be cash equivalents. |
Inventories | f. Inventories Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials and purchased products is determined using the “moving average” basis. Cost of finished products is determined as follows: the value of the raw and packaging materials component is determined primarily using the “moving average” basis; the value of the labor and overhead component is determined on an average basis over the production period. Inventory is written down for estimated obsolescence based upon management assumptions about future demand and market conditions. |
Property and equipment | g. Property and equipment 1. Property and equipment are stated at cost, net of accumulated depreciation and amortization. 2. Years Laboratory equipment 5 Furniture 10 15 Computer equipment 3 Leasehold improvements are amortized by the straight-line method over the expected lease term, which is shorter than the estimated useful life of the improvements. |
Impairment in value of long-lived assets | h. Impairment in value of long-lived assets The Company tests long-lived assets for impairment if an indication of impairment exists. If the sum of expected future cash flows of definite life assets (undiscounted and without interest charges) is less than the carrying amount of such assets, the Company recognizes an impairment loss, and writes down the assets to their estimated fair values. |
Income taxes | i. Income taxes 1. Deferred income taxes Deferred taxes are determined utilizing the assets and liabilities method based on the estimated future tax effects of the differences between the financial accounting and tax bases of assets and liabilities under the applicable tax laws. Deferred tax balances are computed using the tax rates expected to be in effect when those differences reverse. A valuation allowance in respect of deferred tax assets is provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has provided a full valuation allowance with respect to its deferred tax assets. The Company used tax rates of 39%, 24% and 23%. See note 10. 2. Uncertainty in income taxes Tax benefits recognized in the financial statements are those that the Company’s management deems at least more likely than not to be sustained, based on technical merits. The amount of benefits recorded for these tax benefits is measured as the largest benefit the Company’s management deems more likely than not to be sustained. |
Revenue Recognition | j. Revenue Recognition 1. Revenues from supply agreements and from selling products The Company recognizes revenues from supply agreements and from selling products upon delivery, when the sales price is fixed or determinable and collectability is reasonably assured. 2. Revenues from Chiesi Agreement As Chiesi is obligated to acquire pegunigalsidase alfa from the Company and the development services are not considered to have a stand-alone value, development and manufacturing of a product to be commercialized by Chiesi is viewed as one unit of account. Since there is only one unit of account, all payments received by Chiesi prior to the satisfaction of Protalix's obligation will be deferred. Therefore, the $ 25 |
Research and development costs | k. Research and development costs Research and development costs are expensed as incurred and consist primarily of personnel, subcontractors and consultants (mainly in connection with clinical trials), facilities, equipment and supplies for research and development activities. Grants received by the Israeli Subsidiary from the National Authority for Technological Innovation (“NATI”), which has replaced many of the functions of the Office of the Chief Scientist of Israel’s Ministry of Industry, Trade and Labor (the “OCS”), are recognized when the grant becomes receivable, provided there is reasonable assurance that the Company or the Subsidiaries will comply with the conditions attached to the grant and there is reasonable assurance the grant will be received. The grant is deducted from the research and development expenses as the applicable costs are incurred. In connection with purchases of assets, amounts assigned to intangible assets to be used in a particular research and development project that have no alternative future use are charged to research and development costs at the purchase date. Nonrefundable advance payments for goods or services that will be used or rendered for future research and development activities are deferred and amortized over the period that the goods are consumed or the related services are performed. |
Concentration of credit risks and trade receivable | l. Concentration of credit risks and trade receivable Financial instruments that potentially subject the Company to concentration of credit risk consist principally of bank deposits. The Company deposits these instruments with highly rated financial institutions, mainly in Israeli banks, and, as a matter of policy, limits the amounts of credit exposure to any one financial institution. The Company has not experienced any credit losses in these accounts and does not believe it is exposed to any significant credit risk on these instruments. The Company’s trade receivables represent amounts to be received from Pfizer, Brazil and Chiesi. The Company does not require Pfizer, Brazil or Chiesi to post collateral with respect to receivables. |
Share-based compensation | m. Share-based compensation The Company accounts for employee’s share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense over the requisite service period. The Company elected to recognize compensation cost for an award with only service conditions that has a graded vesting schedule using the accelerated method based on the multiple-option award approach. When stock options are granted as consideration for services provided by consultants and other non-employees, the grant is accounted for based on the fair value of the stock options issued. Options granted are measured on a final basis at the end of the related service period and is recognized over the related service period using the straight-line method. |
Net earnings (loss) per share | n. Net (loss) earnings per share Basic and diluted loss per share (“LPS”) are computed by dividing net loss by the weighted average number of shares of the Company’s Common Stock, par value $ 0.001 Diluted LPS is calculated in continuing operations. The calculation of diluted LPS does not include 19,778,424 23,532,492 76,848,199 |
Convertible notes | o. Convertible notes All outstanding convertible notes are accounted for using the guidance set forth in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) 815 requiring that the Company determine whether the embedded conversion option must be separated and accounted for separately. ASC 470-20 regarding debt with conversion and other options requires the issuer of a convertible debt instrument that may be settled in cash upon conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The Company accounts for the 2013 Notes (as defined in note 8a) as a liability, on an aggregated basis, in their entirety. The 2016 Notes (as defined in note 8b) were accounted for partially as liability and equity components of the instrument and partially as a debt host contract with an embedded derivative resulting from the conversion feature. During the year ended December 31, 2017, the embedded derivative was reclassified to additional paid in capital, see note 8. Issuance costs regarding the issuance of the 2016 Notes and the 2017 Notes (as defined in note 8c) were allocated to the liability, equity component, derivative and shares based on their relative fair values. Issuance costs that were allocated to the liability are amortized using the effective interest rate, other than issuance costs that were allocated to the derivative which were expensed immediately. The debt discount and debt issuance costs regarding the issuance of the 2013 Notes are deferred and amortized over the 2013 Notes period (5 years). |
Recently adopted standards | p. Recently adopted standards In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718)” (“ASU 2016-09”) which simplifies certain aspects of the accounting for share-based payments, including accounting for income taxes, classification of awards as either equity or liabilities, classification on the statement of cash flows as well as allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted in any annual or interim period for which financial statements have not yet been issued, and all amendments in the ASU that apply must be adopted in the same period. The Company adopted this standard in the fourth quarter of 2016. The Company elected to account for forfeitures as they occur. The implementation of this ASU did not have a material impact on the consolidated financial statements. |
Recently issued accounting pronouncements | q. Recently issued accounting pronouncements In May 2014, the FASB issued guidance on revenues from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions require capitalization of certain contracts costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount timing and uncertainty of revenues and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The implementation of this ASU did not have a material impact on the consolidated financial statements. In January 2016, the FASB issued ASU, No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance is effective in annual reporting periods beginning after December 15, 2017. The implementation of this ASU is expected to have no material impact on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI22
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of Useful Life | The Company’s assets are depreciated by the straight-line method on the basis of their estimated useful lives as follows: Years Laboratory equipment 5 Furniture 10 15 Computer equipment 3 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Schedule of Property and Equipment | Composition of property and equipment grouped by major classifications is as follows: December 31, (U.S. dollars in thousands) 2016 2017 Laboratory equipment $ 16,265 $ 16,561 Furniture and computer equipment 2,342 2,438 Leasehold improvements 15,678 16,123 Equipment under construction 19 19 $ 34,304 $ 35,141 Less accumulated depreciation and amortization (25,601) (27,465) $ 8,703 $ 7,676 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES [Abstract] | |
Schedule of Inventory | Inventories at December 31, 2016 and 2017 consisted of the following: December 31, (U.S. dollars in thousands) 2016 2017 Raw materials $ 2,591 $ 3,838 Work in progress 395 485 Finished goods 2,259 3,510 Total inventory $ 5,245 $ 7,833 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE CAPITAL [Abstract] | |
Schedule of Options and Restricted Stocks Granted | Below is a table summarizing all of the options grants to employees during the year ended December 31, 2015: Year of No. of options Exercise Vesting period Fair value Expiration 2015 1,909,000 $ 1.72 4 years $ 1,900 10 years |
Summary of Stock Option Activity - Options Granted to Employees | a. Options granted to employees: Year ended December 31, 2015 2016 2017 Weighted Weighted Weighted Number average Number Average Number average of exercise of Exercise of exercise options price options Price options price Outstanding at beginning of year 5,870,309 $ 3.770 6,952,293 $ 3.363 4,884,211 $ 3.617 Changes during the year: Granted 1,909,000 1.72 Forfeited and Expired 277,016 5.395 1,514,957 3.748 154,594 4.004 Exercised (*) 550,000 0.972 553,125 0.067 Outstanding at end of year 6,952,293 $ 3.363 4,884,211 $ 3.617 4,729,617 $ 3.604 Exercisable at end of year 4,477,043 $ 4.182 3,498,492 $ 4.296 4,457,461 $ 3.696 (*) The total intrinsic value of options exercised during the years ended December 31, 2015, 2016 and 2017, was approximately $ 675,000 213,000 0 |
Summary of Restricted Stock Activity - Options Granted to Employees | Restricted stock granted to employees: Year ended December 31, 2015 2016 Number of restricted stock Outstanding at beginning of year 386,124 127,874 Changes during the year: Vested 255,749 127,874 Forfeited 2,501 - Outstanding at end of year 127,874 - |
Schedule of Options Granted to Service Providers | Options and restricted stocks granted to consultants, directors, and other service providers: Year ended December 31, 2015 2016 2017 Number Number Number of Weighted of Weighted of Weighted options/ average options/ average options/ average restricted exercise restricted exercise restricted exercise stock price stock price stock price Outstanding at beginning of Year 1,208,592 $ 6.136 637,209 $ 11.638 208,000 $ 3.156 Changes during the year: Expired 466,883 0.001 429,209 15.748 8,000 0.001 Vested restricted stock 104,500 Outstanding at end of year 637,209 11.638 208,000 3.156 200,000 3.282 Exercisable at end of year 549,709 $ 12.954 170,500 $ 3.109 200,000 $ 3.282 |
Schedule of Information about Share Options Outstanding | The following tables summarize information concerning outstanding and exercisable options and restricted stock as of December 31, 2017: December 31, 2017 Options outstanding Options exercisable Exercise Number of Weighted Number of Weighted n/a (Restricted Stock) n/a n/a $ 1.720 1,720,685 7.22 1,617,279 7.22 $ 2.350 40,000 0.81 40,000 0.81 $ 2.370 900,000 6.74 731,250 6.74 $ 2.650 211,682 1.15 211,682 1.15 $ 3.020 50,000 0.10 50,000 0.10 $ 3.370 150,000 6.56 150,000 6.56 $ 5.000 949,250 0.10 949,250 0.10 $ 6.900 680,000 2.15 680,000 2.15 $ 7.550 160,000 2.65 160,000 2.65 $ 9.660 68,000 2.83 68,000 2.83 4,929,617 4,657,461 |
Schedule of Stock-Based Compensation Expense in Statement of Operations | The following table illustrates the effect of share-based compensation on the statement of operations: Year ended December 31, (U.S. dollars in thousands) 2015 2016 2017 Research and development expenses $ 904 $ 571 $ 182 Selling, general and administrative expenses 898 417 155 $ 1,802 $ 988 $ 337 |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Seven Point Five Percentage Convertible Notes [Member] | |
Fair Value Measurements, Recurring and Nonrecurring | The Company prepared a valuation of the fair value of the 2016 Notes (a Level 3 valuation) for the issuance dates. The value of the 2016 Notes was estimated by implementing the binomial model. The liability component was valued based on the Income Approach. The following parameters were used: December 7, 2016 July 24, 2017 Stock price (USD) 0.3 0.77 Expected term 4.94 4.32 Risk free rate 1.86 % 1.74 % Volatility 54.12 % 63.79 % Yield 13.98 % 11.56 % |
Four Point Five Percentage Convertible Notes One [Member] | |
Fair Value Measurements, Recurring and Nonrecurring | The Company prepared a valuation of the fair value of the 2017 Notes (a Level 3 valuation) for the issuance date. The value of the 2017 Notes was estimated by implementing the binomial model. The liability component was valued based on the Income Approach. The following parameters were used: July 24, 2017 Stock price (USD) 0.77 Expected term 4.57 Risk free rate 1.78 % Volatility 62.68 % Yield 15.21 % |
Notes 2013 [Member] | |
Schedule of Interest Expense Recognized | The following table sets forth total interest expense recognized for the years ended December 31, 2015, 2016 and 2017 related to the 2013 Notes: Year ended December 31, (U.S. Dollars in thousands) 2015 2016 2017 Contractual interest expense $ 3,105 $ 2,943 $ 501 Amortization of debt issuance costs and debt discount 444 421 71 Total $ 3,549 $ 3,364 $ 572 |
Notes 2016 [Member] | |
Schedule of Interest Expense Recognized | The following table sets forth total interest expense recognized related to the 2016 Notes: Year Ended December 31, 2016 2017 (U.S. Dollars in thousands) Contractual interest expense $ 313 $ 4,434 Debt discount amortization 147 2,309 Gain on extinguishment (14,063) Change in fair value of convertible note embedded derivative 6,473 38,061 Interest payment in connection with conversions 3,918 Income in connection with conversions (1,643) Total $ (7,130) $ 47,079 |
Notes 2017 [Member] | |
Schedule of Interest Expense Recognized | The following table sets forth total interest expense recognized related to the 2017 Notes: Year Ended December 31, 2017 (U.S. Dollars in thousands) Contractual interest expense $ 55 Debt premium amortization (46) Loss on extinguishment 1,325 Total $ 1,334 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
2013 Notes and 2016 Notes [Member] | |
Fair Value Measurements, Recurring and Nonrecurring | The following parameters were used: 2013 Notes 2016 Notes Stock price (USD) 0.6612 0.6612 Expected term 0.71 3.88 Risk free rate 1.66 % 2.08 % Volatility 79.57 % 68.89 % Yield 11.86 % 11.89 % |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TAXES ON INCOME [Abstract] | |
Schedule of Deferred Tax Assets | December 31, 2016 2017 (U.S. dollars in thousands) In respect of: Timing Differences $ 3,520 $ 11,335 Net operating loss carry forwards 38,515 47,033 Valuation allowance (42,035) (58,368) - - |
Schedule of Open Tax Years | Jurisdiction: Years: Israel 2013-2017 United States (*) 2013-2017 (*) Includes federal, state and local (or similar provincial jurisdictions) tax positions. |
SUPPLEMENTARY FINANCIAL STATE29
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION [Abstract] | |
Supplemental Information, Balance Sheets | Balance sheets: December 31, 2016 2017 (U.S. dollars in thousands) a. Other assets: Institutions $ 333 $ 394 State of Israel (see note 6a) 1,046 195 Restricted deposit 477 623 Prepaid expenses 416 433 Assets of discontinued operation 327 215 Sundry 49 74 $ 2,648 $ 1,934 December 31, 2016 2017 (U.S. dollars in thousands) b. Accounts payable and accruals other: Payroll and related expenses $ 1,190 $ 1,386 Interest payable 511 645 Provision for vacation 1,399 1,650 Accrued expenses 3,575 4,802 Royalties payable 226 301 Property and equipment suppliers 595 526 $ 7,496 $ 9,310 |
Supplemental Information, Statements of Operations | Statements of operations: December 31, 2015 2016 2017 (U.S. dollars in thousands) Revenues: Pfizer $ 5,226 $ 12,181 Brazil $ 4,364 $ 3,973 $ 7,061 $ 4,364 $ 9,199 $ 19,242 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following summarizes financial information related to the Company’s discontinued operations, in the Company’s consolidated statements of operations: 2015 2016 (U.S. dollars in thousands) REVENUES $ 48,674 $ 209 COMPANY’S SHARE IN COLLABORATION AGREEMENT 5,048 COST OF REVENUES (7,697) (373) GROSS PROFIT (LOSS) 46,025 (164) RESEARCH AND DEVELOPMENT EXPENSES (586) Less reimbursements 545 RESEARCH AND DEVELOPMENT EXPENSES, NET (41) SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (564) (25) NET (LOSS) INCOME FOR THE YEAR FROM DISCONTINUED OPERATIONS $ 45,420 $ (189) GAIN ON THE DISPOSAL 39,899 NET (LOSS) INCOME $ 85,319 $ (189) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Schedule of Related Party Transactions | Year ended December 31, 2015 2016 2017 (U.S. dollars in thousands) Compensation (including share based compensation) $ 631 $ 560 $ 499 |
SIGNIFICANT ACCOUNTING POLICI32
SIGNIFICANT ACCOUNTING POLICIES (Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Laboratory Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 15 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
SIGNIFICANT ACCOUNTING POLICI33
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 19, 2017 | Oct. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 76,848,199 | 23,532,492 | 19,778,424 | ||
Tax Rate Assumption Related To Deferred Tax Difference Reversal | The Company used tax rates of 39%, 24% and 23%. | ||||
Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Additional AmountPayable For Achievement Of Regulatory And Commercial Milestones | $ 320 | ||||
Brazil [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage Of Adult Gaucher Patients Treated With alfataliglicerase | 10.00% | ||||
Pfizer Agreement [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Proceeds From Exchange For Rights To Royalties | $ 36 | ||||
Amended Pfizer Agreement [Member] | Protalix Bio Therapeutics Incorporation [Member] | Brazil [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Collaborative Arrangement Revenues and Expenses Sharing Percentage | 100.00% | ||||
Chiesi Agreement [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Future research and development reimbursement | $ 25 | ||||
Upfront Nonrefundable Noncreditable Payment Receivable | 25 | ||||
Additional Amounts Payable To Cover Development Costs | 25 | ||||
Maximum Entitlement Of Development Costs To Cover Per Year | $ 10 | ||||
Chiesi Agreement [Member] | Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Payment On Net Sales Percentage | 15.00% | ||||
Chiesi Agreement [Member] | Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Payment On Net Sales Percentage | 35.00% |
COMMERCIALIZATION AGREEMENTS (N
COMMERCIALIZATION AGREEMENTS (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Oct. 19, 2017 | Oct. 31, 2015 | Nov. 30, 2009 | |
Maximum [Member] | |||
Additional AmountPayable For Achievement Of Regulatory And Commercial Milestones | $ 320 | ||
Protalix Bio Therapeutics Incorporation [Member] | |||
Collaborative Arrangement Profit Share Percentage | 40.00% | ||
Pfizer [Member] | |||
Stock Issued During Period, Shares, New Issues | 5,649,079 | ||
Debt Instrument, Face Amount | $ 4.3 | ||
Chiesi Agreement [Member] | |||
Upfront Nonrefundable Noncreditable Payment Receivable | 25 | ||
Additional Amounts Payable To Cover Development Costs | 25 | ||
Maximum Entitlement Of Development Costs To Cover Per Year | $ 10 | ||
Chiesi Agreement [Member] | Maximum [Member] | |||
Payment On Net Sales Percentage | 35.00% | ||
Chiesi Agreement [Member] | Minimum [Member] | |||
Payment On Net Sales Percentage | 15.00% |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 35,141 | $ 34,304 |
Less - accumulated depreciation and amortization | (27,465) | (25,601) |
Property, Plant and Equipment, Net | 7,676 | 8,703 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 16,561 | 16,265 |
Furniture And Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,438 | 2,342 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 16,123 | 15,678 |
Equipment Under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 19 | $ 19 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,920 | $ 1,983 | $ 2,370 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Raw materials | $ 3,838 | $ 2,591 |
Work in progress | 485 | 395 |
Finished goods | 3,510 | 2,259 |
Total inventory | $ 7,833 | $ 5,245 |
LIABILITY FOR EMPLOYEE RIGHTS38
LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee severance obligation payments | $ 166,000 | $ 164,000 | $ 168,000 |
Contributions | 746,000 | 675,000 | 675,000 |
Severance expense | 906,000 | 842,000 | 800,000 |
Net gain (loss) for the period | 21,000 | $ (7,000) | $ (18,000) |
Benefits Payable During Next Five Years | 250,000 | ||
Contribution to Insurance Companies [Member] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 830,000 | ||
Contribution to Defined Contribution Plans [Member] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 664,000 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies [Line Items] | |||
Subcontracting commitment amount | $ 19,200,000 | ||
Milestone Potential Payable | 14,300,000 | ||
Milestone Payment, Amount Paid | 0 | $ 300,000 | $ 0 |
OCS [Member] | |||
Commitments And Contingencies [Line Items] | |||
Royalty expense included in cost of revenue | 1,384,000 | 288,000 | 2,200,000 |
Research And License Agreements [Member] | |||
Commitments And Contingencies [Line Items] | |||
Royalty expense included in cost of revenue | 0 | 286,000 | 51,000 |
Lease Agreements [Member] | |||
Commitments And Contingencies [Line Items] | |||
Monthly rent/lease expense | 65,000 | ||
Future minimum lease payments, 2018 | 783,000 | ||
Future minimum lease payments, 2019 | 717,000 | ||
Future minimum lease payments, 2020 | 717,000 | ||
Cash deposited as bank guarantee | 306,000 | ||
Lease/rent expense | 775,000 | 1,000,000 | $ 1,000,000 |
Future minimum lease payments, 2021 | 580,000 | ||
Vehicle Lease And Maintenance Agreements [Member] | |||
Commitments And Contingencies [Line Items] | |||
Monthly rent/lease expense | 52,000 | ||
Future minimum lease payments, 2018 | 565,000 | ||
Future minimum lease payments, 2019 | 385,000 | ||
Future minimum lease payments, 2020 | $ 186,000 | ||
Minimum [Member] | OCS [Member] | |||
Commitments And Contingencies [Line Items] | |||
Royalties based on sale of products developed from funded projects, percentage | 3.00% | ||
Maximum [Member] | OCS [Member] | |||
Commitments And Contingencies [Line Items] | |||
Royalties based on sale of products developed from funded projects, percentage | 6.00% | ||
Accrued royalties | $ 42,200,000 | $ 38,500,000 | |
Percentage of Royalties to Grant Received | 100.00% | 100.00% | 100.00% |
Maximum [Member] | Products Manufactured Outside Of Israel [Member] | |||
Commitments And Contingencies [Line Items] | |||
Percentage of Royalties to Grant Received | 300.00% | 300.00% | 300.00% |
SHARE CAPITAL (Summary of Optio
SHARE CAPITAL (Summary of Option and Restricted Stock Granted to Employees) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options granted | shares | 1,909,000 |
2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price | $ / shares | $ 1.72 |
Vesting period | 4 years |
Fair value at grant | $ | $ 1,900 |
Expiration period | 10 years |
SHARE CAPITAL (Options Granted
SHARE CAPITAL (Options Granted to Employees) (Details) - Options And Restricted Stock Granted To Employees [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Number of options | ||||
Outstanding at beginning of year | 4,884,211 | 6,952,293 | 5,870,309 | |
Granted | 0 | 1,909,000 | ||
Forfeited and Expired | 154,594 | 1,514,957 | 277,016 | |
Exercised | [1] | 0 | 553,125 | 550,000 |
Outstanding at end of year | 4,729,617 | 4,884,211 | 6,952,293 | |
Exercisable at end of year | 4,457,461 | 3,498,492 | 4,477,043 | |
Weighted average exercise price | ||||
Outstanding at beginning of year | $ 3.617 | $ 3.363 | $ 3.77 | |
Granted | 0 | 1.72 | ||
Forfeited and Expired | 4.004 | 3.748 | 5.395 | |
Exercised | [1] | 0 | 0.067 | 0.972 |
Outstanding at end of year | 3.604 | 3.617 | 3.363 | |
Exercisable at end of year | $ 3.696 | $ 4.296 | $ 4.182 | |
[1] | The total intrinsic value of options exercised during the years ended December 31, 2015, 2016 and 2017, was approximately $675,000, $213,000 and $0, respectively. |
SHARE CAPITAL (Restricted Stock
SHARE CAPITAL (Restricted Stock Granted to Employees) (Details) - Employees [Member] - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at beginning of year | 127,874 | 386,124 |
Vested | 127,874 | 255,749 |
Forfeited | 0 | 2,501 |
Outstanding at end of year | 0 | 127,874 |
SHARE CAPITAL (Options and Rest
SHARE CAPITAL (Options and Restricted Stocks Granted to Consultants, Directors and Other Service Providers) (Details) - Options and Restricted Stocks Granted To Consultants Directors And Other Service Providers [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of options/ restricted stock | |||
Outstanding at beginning of year | 208,000 | 637,209 | 1,208,592 |
Expired | 8,000 | 429,209 | 466,883 |
Vested restricted stock | 0 | 104,500 | |
Outstanding at end of year | 200,000 | 208,000 | 637,209 |
Exercisable at end of year | 200,000 | 170,500 | 549,709 |
Weighted average exercise price | |||
Outstanding at beginning of year | $ 3.156 | $ 11.638 | $ 6.136 |
Expired | 0.001 | 15.748 | 0.001 |
Outstanding at end of year | 3.282 | 3.156 | 11.638 |
Exercisable at end of year | $ 3.282 | $ 3.109 | $ 12.954 |
SHARE CAPITAL (Summary of Outst
SHARE CAPITAL (Summary of Outstanding and Restricted Stocks) (Details) - Options and Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options and restricted stock outstanding at end of year | 4,929,617 |
Number of options exercisable at end of year | 4,657,461 |
1.720 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 1.720 |
Number of options and restricted stock outstanding at end of year | 1,720,685 |
Weighted average remaining contractual life | 7 years 2 months 19 days |
Number of options exercisable at end of year | 1,617,279 |
Weighted average remaining contractual life, exercisable | 7 years 2 months 19 days |
2.350 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 2.350 |
Number of options and restricted stock outstanding at end of year | 40,000 |
Weighted average remaining contractual life | 9 months 22 days |
Number of options exercisable at end of year | 40,000 |
Weighted average remaining contractual life, exercisable | 9 months 22 days |
2.370 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 2.370 |
Number of options and restricted stock outstanding at end of year | 900,000 |
Weighted average remaining contractual life | 6 years 8 months 26 days |
Number of options exercisable at end of year | 731,250 |
Weighted average remaining contractual life, exercisable | 6 years 8 months 26 days |
2.650 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 2.650 |
Number of options and restricted stock outstanding at end of year | 211,682 |
Weighted average remaining contractual life | 1 year 1 month 24 days |
Number of options exercisable at end of year | 211,682 |
Weighted average remaining contractual life, exercisable | 1 year 1 month 24 days |
3.020 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 3.020 |
Number of options and restricted stock outstanding at end of year | 50,000 |
Weighted average remaining contractual life | 1 month 6 days |
Number of options exercisable at end of year | 50,000 |
Weighted average remaining contractual life, exercisable | 1 month 6 days |
3.370 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 3.370 |
Number of options and restricted stock outstanding at end of year | 150,000 |
Weighted average remaining contractual life | 6 years 6 months 22 days |
Number of options exercisable at end of year | 150,000 |
Weighted average remaining contractual life, exercisable | 6 years 6 months 22 days |
5.000 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 5 |
Number of options and restricted stock outstanding at end of year | 949,250 |
Weighted average remaining contractual life | 1 month 6 days |
Number of options exercisable at end of year | 949,250 |
Weighted average remaining contractual life, exercisable | 1 month 6 days |
6.900 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 6.900 |
Number of options and restricted stock outstanding at end of year | 680,000 |
Weighted average remaining contractual life | 2 years 1 month 24 days |
Number of options exercisable at end of year | 680,000 |
Weighted average remaining contractual life, exercisable | 2 years 1 month 24 days |
7.550 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 7.550 |
Number of options and restricted stock outstanding at end of year | 160,000 |
Weighted average remaining contractual life | 2 years 7 months 24 days |
Number of options exercisable at end of year | 160,000 |
Weighted average remaining contractual life, exercisable | 2 years 7 months 24 days |
9.660 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 9.660 |
Number of options and restricted stock outstanding at end of year | 68,000 |
Weighted average remaining contractual life | 2 years 9 months 29 days |
Number of options exercisable at end of year | 68,000 |
Weighted average remaining contractual life, exercisable | 2 years 9 months 29 days |
SHARE CAPITAL (Share Based Comp
SHARE CAPITAL (Share Based Compensation Expense Allocation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 337 | $ 988 | $ 1,802 |
Research and Development Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 182 | 571 | 904 |
Marketing, General and administrative expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 155 | $ 417 | $ 898 |
SHARE CAPITAL (Narrative) (Deta
SHARE CAPITAL (Narrative) (Details) - USD ($) | Dec. 07, 2016 | Oct. 12, 2015 | Jul. 24, 2017 | Jun. 24, 2017 | Dec. 31, 2016 | Mar. 23, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 02, 2016 | Dec. 14, 2006 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock available for issuance | 2,554,075 | 13,841,655 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total | 1,909,000 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 130,000 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 6 months 14 days | |||||||||||
Proceeds from Stock Options Exercised | $ 14,000 | $ 534,000 | ||||||||||
Debt Conversion, Converted Instrument, Amount | $ 16,263,000 | |||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 23,846,735 | 11,239,641 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 | $ 213,000 | $ 675,000 | |||||||||
Four Point Five Percentage Convertible Notes [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||||||||||
Debt Conversion, Converted Instrument, Amount | $ 54,052,000 | $ 54,100,000 | ||||||||||
Debt Instrument, Face Amount | $ 9,000,000 | $ 9,000,000 | ||||||||||
Debt Instrument Maturity Year | 2018 years | |||||||||||
Convertible Notes Due Two Thousand Twenty One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Debt Conversion, Converted Instrument, Amount | 40,186,000 | |||||||||||
Debt Instrument, Face Amount | $ 40,186,000 | |||||||||||
Seven Point Five Percentage Convertible Notes [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 7.50% | 7.50% | |||||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,176.4706 | |||||||||||
Debt Instrument, Face Amount | $ 10,000,000 | $ 22,500,000 | ||||||||||
Debt Instrument Maturity Year | 2021 years | |||||||||||
Four Point Five Percentage Convertible Notes One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||||||||||
Debt Instrument, Face Amount | $ 8,550,000 | $ 8,550,000 | ||||||||||
Debt Instrument Maturity Year | 2022 years | 2022 years | ||||||||||
Common Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock issued | 5,649,079 | 23,846,735 | 5,649,079 | |||||||||
Option to purchase shares of common stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Grant Date Fair Value | $ 1,900,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 0.00% | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.60% | |||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.72 | |||||||||||
Option to purchase shares of common stock [Member] | Vest on the first anniversary of the grant date [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||
[1] | The total intrinsic value of options exercised during the years ended December 31, 2015, 2016 and 2017, was approximately $675,000, $213,000 and $0, respectively. |
CONVERTIBLE NOTES (Schedule of
CONVERTIBLE NOTES (Schedule of Interest Expense Recognized) (Details) - 2013 Notes [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Contractual interest expense | $ 501 | $ 2,943 | $ 3,105 |
Amortization of debt issuance costs and debt discount | 71 | 421 | 444 |
Total | $ 572 | $ 3,364 | $ 3,549 |
CONVERTIBLE NOTES (Fair Value I
CONVERTIBLE NOTES (Fair Value Income Approach) (Details) - $ / shares | Dec. 07, 2016 | Jul. 24, 2017 |
Seven Point Five Percentage Convertible Notes [Member] | ||
Stock price (USD) | $ 0.3 | $ 0.77 |
Expected term | 4 years 11 months 8 days | 4 years 3 months 25 days |
Risk free rate | 1.86% | 1.74% |
Volatility | 54.12% | 63.79% |
Yield | 13.98% | 11.56% |
Four Point Five Percentage Convertible Notes One [Member] | ||
Stock price (USD) | $ 0.77 | |
Expected term | 4 years 6 months 25 days | |
Risk free rate | 1.78% | |
Volatility | 62.68% | |
Yield | 15.21% |
CONVERTIBLE NOTES (Schedule O49
CONVERTIBLE NOTES (Schedule Of Debt Interest Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain (Loss) on extinguishment | $ 1,325 | $ (14,063) | |
Change in fair value of convertible note embedded derivative | (38,061) | (6,473) | |
2016 Notes [Member] | |||
Contractual interest expense | 4,434 | 313 | |
Debt discount (premium) amortization | 2,309 | 147 | |
Gain (Loss) on extinguishment | (14,063) | ||
Change in fair value of convertible note embedded derivative | 38,061 | 6,473 | |
Interest payment in connection with conversions | 3,918 | ||
Income in connection with conversions | (1,643) | ||
Total | 47,079 | $ (7,130) | |
Notes 2017 [Member] | |||
Contractual interest expense | 55 | ||
Debt discount (premium) amortization | (46) | ||
Gain (Loss) on extinguishment | 1,325 | ||
Total | $ 1,334 |
CONVERTIBLE NOTES (Narrative) (
CONVERTIBLE NOTES (Narrative) (Details) - USD ($) | Dec. 07, 2016 | Jul. 31, 2017 | Jul. 24, 2017 | Jun. 24, 2017 | Apr. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 02, 2016 | Sep. 18, 2013 |
Number of shares for basis conversion | 173.6593 | ||||||||||
Net proceeds from issuance of convertible notes | $ 9,500,000 | $ 9,542,000 | $ 19,681,000 | ||||||||
Principal amount, related to the initial purchaser's over-allotment option | $ 9,000,000 | ||||||||||
Debt Conversion, Converted Instrument, Amount | 16,263,000 | ||||||||||
Gain (Loss) on Extinguishment of Debt | $ (1,325,000) | 14,063,000 | |||||||||
Percentage Of Excess Shares Outstanding | 20.00% | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 23,846,735 | 11,239,641 | |||||||||
Repayments of Convertible Debt | $ 10,961,000 | ||||||||||
Stockholders Approval Description For Common Stock Issuance | the issuance of shares in excess of 20% of its outstanding shares. On April 12, 2017, the Companys stockholders approved the issuance of shares of the Companys Common Stock in excess of 20% of the Companys outstanding shares of Common Stock to settle conversion requests and pay interest on the Companys issued 7.5% convertible notes. | ||||||||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ (38,061,000) | $ (6,473,000) | |||||||||
Convertible Notes Payable [Member] | |||||||||||
Principal amount | $ 69,000,000 | ||||||||||
Seven Point Five Percentage Convertible Notes [Member] | |||||||||||
Principal amount | $ 10,000,000 | $ 22,500,000 | |||||||||
Maturity | Nov. 15, 2021 | ||||||||||
Interest rate | 0.00% | 7.50% | 7.50% | ||||||||
Conversion price per share | $ 0.85 | ||||||||||
Base value for conversion rate | $ 1,000 | $ 1,000 | |||||||||
Gain (Loss) on Extinguishment of Debt | 14,100,000 | ||||||||||
Maximum Debt Instrument Convertible Conversion Share Number | $ 1,787.3100 | ||||||||||
Debt Instrument, Redemption, Description | Prior to the maturity date, the Company may redeem in cash: a) any or all of the 2016 Notes if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days exceeds 150% of the conversion price on each applicable trading day, or b) all of the 2016 Notes then outstanding if the aggregate principal amount of the 2016 Notes then outstanding is less than 15% of the aggregate principal amount of the notes issued. | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,176.4706 | ||||||||||
Debt Instrument Maturity Year | 2021 years | ||||||||||
Four Point Five Percentage Convertible Notes [Member] | |||||||||||
Principal amount | 9,000,000 | $ 9,000,000 | |||||||||
Interest rate | 4.50% | 4.50% | |||||||||
Debt Conversion, Converted Instrument, Amount | $ 54,052,000 | $ 54,100,000 | |||||||||
Debt Instrument Maturity Year | 2018 years | ||||||||||
Convertible Notes Due Two Thousand Twenty One [Member] | |||||||||||
Principal amount | 40,186,000 | ||||||||||
Debt Conversion, Converted Instrument, Amount | $ 40,186,000 | ||||||||||
Convertible Notes 2013 [Member] | |||||||||||
Interest rate | 4.50% | ||||||||||
Conversion price per share | $ 5.76 | ||||||||||
Four Point Five Percentage Convertible Notes 2013 [Member] | |||||||||||
Debt Conversion, Converted Instrument, Amount | $ 9,000,000 | $ 5,900,000 | |||||||||
Seven Point Five Percentage Convertible Notes 2016 [Member] | |||||||||||
Principal amount | 10,000,000 | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 8,827,624 | ||||||||||
Repayments of Convertible Debt | $ 11,000,000 | ||||||||||
Long-term Debt, Gross | 59,100,000 | ||||||||||
Debt Conversion, Original Debt, Amount | $ 13,600,000 | ||||||||||
Four Point Five Percentage Convertible Notes One [Member] | |||||||||||
Principal amount | $ 8,550,000 | $ 8,550,000 | |||||||||
Interest rate | 4.50% | 4.50% | |||||||||
Repayments of Convertible Debt | $ 275,000 | ||||||||||
Debt Instrument Maturity Year | 2022 years | 2022 years |
FAIR VALUE MEASUREMENT (The lia
FAIR VALUE MEASUREMENT (The liability component was valued based on the Income Approach) (Details) - $ / shares | Dec. 07, 2016 | Jul. 24, 2017 | Dec. 31, 2017 |
Four Point Five Percentage Convertible Notes [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Stock price (USD) | $ 0.6612 | ||
Expected term | 8 months 16 days | ||
Risk free rate | 1.66% | ||
Volatility | 79.57% | ||
Yield | 11.86% | ||
Seven Point Five Percentage Convertible Notes [Member] | |||
Stock price (USD) | $ 0.3 | $ 0.77 | |
Expected term | 4 years 11 months 8 days | 4 years 3 months 25 days | |
Risk free rate | 1.86% | 1.74% | |
Volatility | 54.12% | 63.79% | |
Yield | 13.98% | 11.56% | |
Seven Point Five Percentage Convertible Notes [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Stock price (USD) | $ 0.6612 | ||
Expected term | 3 years 10 months 17 days | ||
Risk free rate | 2.08% | ||
Volatility | 68.89% | ||
Yield | 11.89% |
FAIR VALUE MEASUREMENT (Narrati
FAIR VALUE MEASUREMENT (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Jul. 24, 2017 | Jun. 24, 2017 | Dec. 02, 2016 |
Four Point Five Percentage Convertible Notes [Member] | ||||
Debt Instrument, Face Amount | $ 9 | $ 9 | ||
Seven Point Five Percentage Convertible Notes [Member] | ||||
Debt Instrument, Face Amount | $ 10 | $ 22.5 | ||
Seven Point Five Percentage Convertible Notes 2016 [Member] | ||||
Debt Instrument, Face Amount | $ 10 | |||
Fair Value, Inputs, Level 3 [Member] | Four Point Five Percentage Convertible Notes [Member] | ||||
Convertible Debt, Fair Value Disclosures | $ 5.7 | |||
Fair Value, Inputs, Level 3 [Member] | Seven Point Five Percentage Convertible Notes [Member] | ||||
Convertible Debt, Fair Value Disclosures | 76.6 | |||
Fair Value, Inputs, Level 3 [Member] | Four Point Five Percentage Convertible Notes 2013 [Member] | ||||
Debt Instrument, Face Amount | 5.9 | |||
Fair Value, Inputs, Level 3 [Member] | Seven Point Five Percentage Convertible Notes 2016 [Member] | ||||
Debt Instrument, Face Amount | $ 59.1 |
TAXES ON INCOME (Deferred Incom
TAXES ON INCOME (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
In respect of: | ||
Timing Differences | $ 11,335 | $ 3,520 |
Net operating loss carry forwards | 47,033 | 38,515 |
Valuation allowance | (58,368) | (42,035) |
Deferred Tax Assets, Net of Valuation Allowance, Total | $ 0 | $ 0 |
TAXES ON INCOME (Open Tax Years
TAXES ON INCOME (Open Tax Years) (Details) | 12 Months Ended | |
Dec. 31, 2017 | ||
ISRAEL [Member] | Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,013 | |
ISRAEL [Member] | Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,017 | |
UNITED STATES [Member] | Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,013 | [1] |
UNITED STATES [Member] | Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,017 | [1] |
[1] | Includes federal, state and local (or similar provincial jurisdictions) tax positions. |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | |||||
Statutory income tax rate | 39.00% | ||||
Net operating loss carry forwards | $ 207 | ||||
Scenario, Plan [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statutory income tax rate | 21.00% | ||||
Law for Amending the Israel Income Tax Ordinance - 2009, Tax year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statutory income tax rate | 26.50% | ||||
Law for Amending the Israel Income Tax Ordinance, Tax Thereafter [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statutory income tax rate | 25.00% | ||||
Restricted Amount [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carry forwards | $ 23 | $ 20 | |||
Protalix Ltd. [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statutory income tax rate | 24.00% | ||||
Net operating loss carry forwards | $ 184 | $ 133 | |||
Protalix Ltd. [Member] | Scenario, Plan [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statutory income tax rate | 23.00% | ||||
Protalix Ltd. [Member] | Law for Amending the Israel Income Tax Ordinance, Tax Thereafter [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statutory income tax rate | 25.00% | 26.50% | |||
Minimum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statutory income tax rate | 23.00% | ||||
Maximum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statutory income tax rate | 25.00% |
SUPPLEMENTARY FINANCIAL STATE56
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other assets: | ||
Institutions | $ 394 | $ 333 |
State of Israel (see note 6a) | 195 | 1,046 |
Restricted deposit | 623 | 477 |
Prepaid expenses | 433 | 416 |
Assets of discontinued operation | 215 | 327 |
Sundry | 74 | 49 |
Other assets | $ 1,934 | $ 2,648 |
SUPPLEMENTARY FINANCIAL STATE57
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Accounts Payable and Accruals, Other) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts payable and accruals - other: | ||
Payroll and related expenses | $ 1,386 | $ 1,190 |
Interest payable | 645 | 511 |
Provision for vacation | 1,650 | 1,399 |
Accrued expenses | 4,802 | 3,575 |
Royalties payable | 301 | 226 |
Property and equipment suppliers | 526 | 595 |
Accounts Payable, Current | $ 9,310 | $ 7,496 |
SUPPLEMENTARY FINANCIAL STATE58
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Statements Of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 19,242 | $ 9,199 | $ 4,364 |
Pfizer [Member] | |||
Revenues | 12,181 | 5,226 | |
BRAZIL | |||
Revenues | $ 7,061 | $ 3,973 | $ 4,364 |
DISCONTINUED OPERATIONS (Operat
DISCONTINUED OPERATIONS (Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES | $ 209 | $ 48,674 | |
COMPANY’S SHARE IN COLLABORATION AGREEMENT | 5,048 | ||
COST OF REVENUES | (373) | (7,697) | |
GROSS PROFIT (LOSS) | (164) | 46,025 | |
RESEARCH AND DEVELOPMENT EXPENSES | (586) | ||
Less -reimbursements | 545 | ||
RESEARCH AND DEVELOPMENT EXPENSES, NET | (41) | ||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | (25) | (564) | |
NET (LOSS) INCOME FOR THE YEAR FROM DISCONTINUED OPERATIONS | (189) | 45,420 | |
GAIN ON THE DISPOSAL | 39,899 | ||
NET (LOSS) INCOME | $ (189) | $ 85,319 |
RELATED PARTY TRANSACTIONS (Com
RELATED PARTY TRANSACTIONS (Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation To The non-executive Directors [Member] | |||
Related Party Transaction [Line Items] | |||
Compensation (including share based compensation) to the non-executive directors (includes the interim Chairman of the Board through 2015 and the Chairman of the Board for part of 2015) | $ 499 | $ 560 | $ 631 |