Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-35165 |
Entity Registrant Name | BrainsWay Ltd. |
Entity Central Index Key | 0001505065 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 19 Hartum Street |
Entity Address, Address Line Two | Bynet Building |
Entity Address, Address Line Three | 3rd Floor |
Entity Address, Address Line Four | Har HaHotzvim |
Entity Address, City or Town | Jerusalem |
Entity Address, Country | IL |
Entity Address, Postal Zip Code | 9777518 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | true |
Entity Common Stock, Shares Outstanding | 32,911,134 |
ICFR Auditor Attestation Flag | false |
Auditor Name | KOST FORER GABBAY & KASIERER |
Auditor Location | Tel-Aviv, Israel |
Auditor Firm ID | 1281 |
American Depositary Shares, each representing two Ordinary Shares (1) | |
Entity Addresses [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing two Ordinary Shares (1) |
Trading Symbol | BWAY |
Security Exchange Name | NASDAQ |
Ordinary Shares, par value NIS 0.04 per share | |
Entity Addresses [Line Items] | |
Title of 12(b) Security | Ordinary Shares, par value NIS 0.04 per share |
Trading Symbol | BWAY |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 1 Van de Graaff Drive |
Entity Address, City or Town | Burlington |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 01803 |
City Area Code | 844 |
Local Phone Number | 386-7001 |
Contact Personnel Name | R. Scott Areglado |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 16,921 | $ 16,961 |
Short-term deposits | 40,428 | 221 |
Trade receivables, net | 6,332 | 5,582 |
Other current assets | 1,766 | 1,534 |
Total current assets | 65,447 | 24,298 |
NON-CURRENT ASSETS: | ||
System components | 4,463 | 3,642 |
Leased systems, net | 3,813 | 5,198 |
Other property and equipment, net | 1,055 | 710 |
Other long-term assets | 954 | 163 |
Total non-current assets | 10,285 | 9,713 |
Total assets | 75,732 | 34,011 |
CURRENT LIABILITIES: | ||
Trade payables | 1,102 | 781 |
Deferred revenues | 2,195 | 1,543 |
Liability in respect of research and development grants | 978 | 707 |
Other accounts payable | 4,792 | 3,769 |
Total current liabilities | 9,067 | 6,800 |
NON-CURRENT LIABILITIES: | ||
Deferred revenues and other liabilities | 3,419 | 2,053 |
Liability in respect of research and development grants | 5,921 | 5,524 |
Total non-current liabilities | 9,340 | 7,577 |
EQUITY: | ||
Share capital | 363 | 233 |
Share premium | 137,566 | 95,135 |
Share-based payment reserve | 5,340 | 3,748 |
Currency Translation Adjustments | (2,188) | (2,188) |
Accumulated deficit | (83,756) | (77,294) |
Total equity | 57,325 | 19,634 |
Total equity and liabilities | $ 75,732 | $ 34,011 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Revenues | $ 29,657 | $ 22,057 | $ 23,101 |
Cost of revenues | 6,599 | 5,058 | 5,129 |
Gross profit | 23,058 | 16,999 | 17,972 |
Research and development expenses, net | 6,393 | 5,823 | 7,876 |
Selling and marketing expenses | 15,880 | 11,283 | 13,269 |
General and administrative expenses | 5,784 | 4,722 | 5,303 |
Total operating expenses | 28,057 | 21,828 | 26,448 |
Operating loss | 4,999 | 4,829 | 8,476 |
Finance expense, net | 1,420 | 319 | 1,430 |
Loss before income taxes | 6,419 | 5,148 | 9,906 |
Income taxes | 43 | 237 | 422 |
Net loss and total comprehensive loss | $ 6,462 | $ 5,385 | $ 10,328 |
Basic and diluted net loss per share | $ (0.21) | $ (0.24) | $ (0.50) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Issued capital [member] | Share premium [member] | Reserve For Shared Based Payment Transactions [Member] | Currency Translation Adjustments [Member] | Retained earnings [member] | Total | |
Beginning balance, value at Dec. 31, 2018 | $ 171 | $ 67,193 | $ 3,357 | $ (2,188) | $ (61,581) | $ 6,952 | |
IfrsStatementLineItems [Line Items] | |||||||
Net loss and total comprehensive loss | (10,328) | (10,328) | |||||
Issuance of shares, net (***) | [1] | 62 | 26,271 | 26,333 | |||
Expiration of share options | (185) | 185 | |||||
Cost of share-based payment | 1,263 | 1,263 | |||||
Ending balance, value at Dec. 31, 2019 | 233 | 93,649 | 4,435 | (2,188) | (71,909) | 24,220 | |
IfrsStatementLineItems [Line Items] | |||||||
Net loss and total comprehensive loss | (5,385) | (5,385) | |||||
Forfeiture of share options | (187) | (187) | |||||
Issuance of shares, net (***) | 466 | (466) | |||||
Expiration of share options | 1,020 | (1,020) | |||||
Cost of share-based payment | 986 | 986 | |||||
Ending balance, value at Dec. 31, 2020 | 233 | 95,135 | 3,748 | (2,188) | (77,294) | 19,634 | |
IfrsStatementLineItems [Line Items] | |||||||
Net loss and total comprehensive loss | (6,462) | (6,462) | |||||
Issuance of shares, net (***) | [2] | 129 | 42,131 | 42,260 | |||
Expiration of share options | 142 | (142) | |||||
Cost of share-based payment | 1,893 | 1,893 | |||||
Exercise of share options | 1 | 158 | (159) | ||||
Ending balance, value at Dec. 31, 2021 | $ 363 | $ 137,566 | $ 5,340 | $ (2,188) | $ (83,756) | $ 57,325 | |
[1] | Net of issuance expenses of $4,444 thousand. | ||||||
[2] | Net of issuance expenses of $2,940 thousand. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Total comprehensive loss | $ (6,462) | $ (5,385) | $ (10,328) |
Adjustments to profit or loss items: | |||
Depreciation and amortization | 560 | 438 | 550 |
Depreciation of leased systems | 1,126 | 1,180 | 1,054 |
Impairment and disposals | 1,295 | 1,061 | 1,191 |
Withdrawal of lease due to termination of contract | (5) | ||
Finance expenses, net | 1,420 | 319 | 1,430 |
Cost of share-based payment | 1,893 | 799 | 1,263 |
Income taxes | 43 | 237 | 422 |
Total adjustments to reconcile profit (loss) | 6,337 | 4,029 | 5,910 |
Changes in asset and liability items: | |||
Increase in trade receivables | (849) | (7) | (2,634) |
Decrease (increase) in other accounts receivable | (1,226) | (97) | 136 |
Increase (decrease) in trade payables | 289 | (552) | 175 |
Increase (decrease) in other accounts payable | 815 | 515 | (385) |
Increase in deferred revenues and other liabilities | 2,039 | 320 | 555 |
Total changes in asset and liability | 1,068 | 179 | (2,153) |
Cash paid and received during the year for: | |||
Interest paid | (62) | (71) | (296) |
Interest received | 17 | 61 | 175 |
Income taxes paid | (14) | (249) | (552) |
Total cash paid and received during the year | (59) | (259) | (673) |
Net cash provided by (used in) operating activities | 884 | (1,436) | (7,244) |
Cash flows from investing activities: | |||
Purchase of property and equipment and system components, net | (2,238) | (2,470) | (3,311) |
investment in short-term deposits, net | (40,000) | (120) | |
investment in long-term deposits, net | 22 | 5 | 985 |
Net cash used in investing activities | (42,216) | (2,465) | (2,446) |
Cash flows from financing activities: | |||
Repayment of loan from bank, net | (3,000) | ||
Receipt of government grants | 492 | 42 | 176 |
Repayment of liability in respect of research and development grants | (761) | (655) | (601) |
Repayment of lease liability | (475) | (417) | (434) |
Issuance of share capital, net | 42,260 | 26,333 | |
Net cash provided by (used in) financing activities | 41,516 | (1,030) | 22,474 |
Exchange rate differences on cash and cash equivalents | (224) | 218 | (78) |
Increase (decrease) in cash and cash equivalents | (40) | (4,713) | 12,706 |
Cash and cash equivalents at the beginning of the year | 16,961 | 21,674 | 8,968 |
Cash and cash equivalents at the end of the year | 16,921 | 16,961 | 21,674 |
(a) Significant non-cash transactions: | |||
Purchase of property and equipment on credit | 23 | 183 | |
Recognition of new lease liability and right-of-use | 587 | 48 | |
Termination of lease liability and right of-use | $ (64) | $ (51) |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2021 | |
General | |
GENERAL | NOTE 1: GENERAL a. A general description of the Company and its activity: BrainsWay is a leader in advanced noninvasive neurostimulation treatments for mental health disorders. The Company is advancing neuroscience with its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS™) platform technology to improve health and transform lives. The Company has obtained from the U.S. Food and Drug Administration (FDA) three cleared indications backed by pivotal studies demonstrating clinically proven efficacy. Current indications include MDD (Major Depressive Disorder), obsessive-compulsive disorder (OCD), and smoking addiction. The Company received its first commercial Deep TMS product received clearance from the FDA in 2013, for the treatment of MDD in adult patients who have failed to achieve satisfactory improvement from anti-depressant medication. In April 2021, the Company received FDA clearance for a shorter innovative MDD treatment and in August 2021, the Company received an additional clearance from the FDA for expansion of the existing MDD clearance to include the noninvasive treatment of anxiety symptoms. The Company received a clearance from the FDA in August 2020, for use of its Deep TMS system as an aid in short-term smoking cessation in adults. BrainsWay Ltd. (the “Company”) and its wholly owned subsidiaries, BrainsWay, Inc. (“Inc”), Brain R&D Services Ltd. (“Brain R&D”), BrainsWay USA Inc (“USA Inc”), collectively (the “Group”) derive revenues from the sale and lease of its systems. b. The COVID-19 global pandemic has led governments and authorities around the globe, to take various precautionary measures in order to limit the spread of the COVID-19 global pandemic, including government-imposed quarantines, lockdowns, and other public health safety measures, which have had and continues to have an adverse effect on the global markets and its economy, including on the availability and pricing of materials, manufacturing and delivery efforts, sales to existing and potential customers and leads, collections from accounts, and other aspects of the global economy. Therefore, the COVID-19 global pandemic could continue to disrupt production and cause delays in the supply and delivery of products used in the Company's operations, may further divert the attention and efforts of the medical community to coping with the COVID-19 global pandemic, impact the Company's ability to recruit subjects for ongoing and planned clinical trials and disrupt the marketplace in which the Company operates and may have material adverse effects on its operations, sales, revenues, collection from accounts and the ability to raise funds. The extent to which the COVID-19 global pandemic impacts the Company's results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the COVID-19 global pandemic and the actions to contain the COVID-19 global pandemic or treat its impact, among others. c. The Company has a positive cash flow from operating activities and an operating loss of $ 884 4,999 d. The financial statements of the Company as of December 31, 2021 and 2020 and for each of the three years in the period ended December 31, 2021 were authorized for issuance in accordance with a resolution of the board of directors on April 11, 2022. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The following accounting policies have been applied consistently in the financial statements for all periods presented, unless otherwise stated. a. Basis of presentation of the financial statements These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The Company’s financial statements have been prepared on a cost basis, except for certain financial instruments which are presented at fair value through profit or loss. The Company has elected to present the profit or loss items using the function of expense method. b. Consolidated financial statements The consolidated financial statements comprise the financial statements of companies that are controlled by the Company (subsidiaries). Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Potential voting rights are considered when assessing whether an entity has control. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases. The consolidated financial statements of the Company and of the subsidiaries are prepared as of the same dates and periods. The consolidated financial statements are prepared using uniform accounting policies by all companies in the Group. Significant intragroup balances and transactions and gains or losses resulting from intragroup transactions are eliminated in full in the consolidated financial statements. c. Functional currency, presentation currency and foreign currency 1. Functional currency and presentation currency: The functional currency is the currency that best reflects the economic environment in which the Company operates and conducts its transactions, is separately determined for each Group entity and is used to measure its financial position and operating results. The Group determines the functional currency of each Group entity. The Company’s functional and presentation currency is the US Dollar for all reported periods and subsidiaries 2. Transactions, assets and liabilities in foreign currency: Transactions denominated in foreign currency are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are translated at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences, other than those capitalized to qualifying assets or accounted for as hedging transactions in equity, are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currency and measured at cost are translated at the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currency and measured at fair value are translated into the functional currency using the exchange rate prevailing at the date when the fair value was determined. d. Cash equivalents Cash equivalents are considered as highly liquid investments, including unrestricted short-term bank deposits with an original maturity of three months or less from the date of investment or with a maturity of more than three months, but which are redeemable on demand without penalty and which form part of the Group's cash management. e. Short-term deposits Short-term bank deposits are deposits with an original maturity of more than three months from the date of investment and which do not meet the definition of cash equivalents. The deposits are presented according to their terms of deposit. f. Revenue recognition Revenue from contracts with customers is recognized when the control over the goods or services is transferred to the customer. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes). In determining the amount of revenue from contracts with customers, the Company evaluates whether it is a principal or an agent in the arrangement. The Company is a principal when the Company controls the promised goods or services before transferring them to the customer. In these circumstances, the Company recognizes revenue for the gross amount of the consideration. When the Company is an agent, it recognizes revenue for the net amount of the consideration, after deducting the amount due to the principal. The Company primarily generates revenue from two major streams: (a) sale of systems and related services and (b) lease of systems. Revenues from sale of systems and related services: Revenue from sale of systems is recognized at the point in time when control of the system is transferred to the customer, generally upon shipment of the system to the customer. Revenue from rendering of extended warranty services is recognized over time, during the period the customer simultaneously receives and consumes the benefits provided by the Company’s performance. The Company charges its customers based on payment terms agreed upon in specific agreements. When payments are made before or after the service is performed, the Company recognizes the resulting contract asset or liability. Revenue from operating leases: A lease in which substantially all the risks and rewards incidental to ownership of the leased asset have not been transferred to the lessee is classified as an operating lease. Lease payments are recognized as income in profit or loss on a straight-line basis over the lease term. Initial direct costs incurred in respect of the lease agreement are added to the carrying amount of the underlying asset and recognized as an expense over the lease term on the same basis as the lease income. Costs of obtaining a contract: In order to obtain certain contracts with customers, the Company incurs incremental costs in obtaining the contract (such as sales commissions which are contingent on making binding sales). Costs incurred in obtaining the contract with the customer which would not have been incurred if the contract had not been obtained and which the Company expects to recover are recognized as an asset and amortized on a systematic basis that is consistent with the provision of the services under the specific contract. An impairment loss in respect of capitalized costs of obtaining a contract is recognized in profit or loss when the carrying amount of the asset exceeds the remaining amount of consideration that the Company expects to receive for the goods or services to which the asset relates less the costs that relate directly to providing those goods or services and that have not been recognized as expenses. The Company has elected to apply the practical expedient allowed by IFRS 15 according to which incremental costs of obtaining a contract are recognized as an expense when incurred if the amortization period of the asset is one year or less. Contract liabilities: A contract liability, presented as deferred revenues, is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. Deferred revenue will be recognized as revenue in profit and loss when the work is performed. The Company elected to apply the practical expedient in IFRS 15 and does not provide disclosure of the remaining unsatisfied performance obligations with respect to contracts that have a term of up to one year. Allocating the transaction price: For contracts that consist of more than one performance obligation at contract inception, the Company allocates the contract transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis. The stand-alone selling price is the price at which the Company would sell the promised goods or services separately to a customer. g. Government grants Government grants are recognized when there is reasonable assurance that the grants will be received and the Company will comply with all attached conditions. Government grants received from the Israel Innovation Authority (“IIA”) are recognized upon receipt as a liability if future economic benefits are expected from the research project, that will result in royalty-bearing sales. A liability for the grant is first measured at fair value using a discount rate that reflects a market rate of interest. The difference between the amount of the grant received and the fair value of the liability is accounted for as a government grant and recognized as a reduction of research and development expenses. After initial recognition, the liability is measured at amortized cost using the effective interest method. Royalty payments are treated as a reduction of the liability. If no economic benefits are expected from the research activity, the grant received are recognized as a reduction of the related research and development expenses. In that event, the royalty obligation is treated as a contingent liability in accordance with IAS 37. Amounts paid as royalties are recognized as settlement of the liability. h. Taxes on income Current or deferred taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or equity. 1. Current taxes: The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted at the reporting date, as well as adjustments required in connection with the tax liability in respect of previous years. 2. Deferred taxes: Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes. Deferred taxes are measured at the tax rate that is expected to apply when the asset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is not probable that they will be utilized. Temporary differences that can be deducted for which deferred tax assets had not been recognized are reviewed at each reporting date and a respective deferred tax asset is recognized to the extent that utilization is probable. Taxes that would apply in the event of the disposal of investments in subsidiaries have not been taken into account in computing deferred taxes, as long as the disposal of the investments in subsidiaries is not probable in the foreseeable future. Also, deferred taxes that would apply in the event of distribution of earnings by subsidiaries as dividends have not been taken into account in computing deferred taxes, since the distribution of dividends does not involve an additional tax liability or since it is the Company’s policy not to initiate distribution of dividends from a subsidiary that would trigger an additional tax liability. Deferred taxes are offset if there is a legally enforceable right to offset a current tax asset against a current tax liability and the deferred taxes relate to the same taxpayer and the same taxation authority. i. Leases The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration. For leases in which the Company is the lessee, the Company recognizes on the commencement date of the lease a right-of-use asset and a lease liability, excluding leases whose term is up to 12 months and leases for which the underlying asset is of low value. For these excluded leases, the Company has elected to recognize the lease payments as an expense in profit or loss on a straight-line basis over the lease term. In measuring the lease liability, the Company has elected to apply the practical expedient in the Standard and does not separate the lease components from the non-lease components (such as management and maintenance services, etc.) included in a single contract. On the commencement date, the lease liability includes all unpaid lease payments discounted at the interest rate implicit in the lease, if that rate can be readily determined, or otherwise using the Company’s incremental borrowing rate. After the commencement date, the Company measures the lease liability using the effective interest rate method. On the commencement date, the right-of-use asset is recognized in an amount equal to the lease liability plus lease payments already made on or before the commencement date and initial direct costs incurred. The right-of-use asset is measured applying the cost model and depreciated over the shorter of its useful life and the lease term. Following are the amortization periods of the right-of-use assets by class of underlying asset: Schedule of amortization of right-of-use assets Years Lease facilities 2 to 3 Motor vehicles 3 The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36. For leases in which the Company is the lessor, refer to revenue recognition in Note 2f. j. System components System components are measured at the lower of cost and net realizable value. The cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, which is primarily leasing to customers, less estimated costs of completion and estimated costs necessary to make a sale or a lease. The Company periodically evaluates the intended use of the systems components, their condition and age and records provisions for impairment accordingly. k. Leased systems, net The cost of self-constructed systems (leased systems) includes the cost of materials, direct labor and share-based payment, as well as any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, less accumulated depreciation and impairment losses. The impairment and disposals of leased systems and system components recognized in cost of revenues was $ 1,295 1,061 1,191 l. Other property and equipment, net Other property and equipment are measured at cost, including directly attributable costs, less accumulated depreciation, accumulated impairment losses and any related investment grants and excluding day-to-day servicing expenses. Cost includes spare parts and auxiliary equipment that are used in connection with plant and equipment. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows: Schedule of useful life of the assets at annual rates % Leased systems 15 Laboratory equipment 15 Computers 33 Office furniture and equipment 6 - 15 Leasehold improvements (*) Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Group and intended to be exercised) and the useful life of the improvement. The useful life, depreciation method and residual value of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimate. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale and the date that the asset is derecognized. m. Impairment of non-financial assets The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss. An impairment loss of an asset is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, shall not be increased above the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and its recoverable amount. The reversal of impairment loss of an asset presented at cost is recognized in profit or loss. n. Financial instruments The Company has short-term financial assets, such as trade receivables, in respect of which the Company applies the simplified approach in IFRS 9 and measures the loss allowance in an amount equal to the lifetime expected credit losses. o. Fair value measurement Carrying amount of cash and cash equivalents, short-term deposits, trade receivables, other current assets, trade payables and other account payables approximate their fair value due to the short-term maturities of the instruments. p. Provisions A provision in accordance with IAS 37 is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. q. Employee benefit liabilities 1. Short-term employee benefits: Short-term employee benefits are benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services. These benefits include salaries, paid annual and sick leave, recreation and social security contributions and are recognized as expenses as the services are rendered. A liability in respect of a cash bonus or a profit-sharing plan is recognized when the Company has a legal or constructive obligation to make such payment as a result of past service rendered by an employee and a reliable estimate of the amount can be made. 2. Post-employment benefits: The Group has defined contribution plans pursuant to Section 14 of the Severance Pay Law (“Section 14”) under which the Group pays fixed contributions and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient amounts to pay all employee benefits relating to employee service in the current and prior periods. The Israeli Severance Pay Law, 1963 (“Severance Pay Law”), specifies that employees are entitled to severance payment following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. The Company’s liability for severance pay is covered by the provisions of. Under Section 14, employees are entitled to monthly deposits, at a rate of 8.33 r. Share-based payment transactions The Company’s employees and other service providers are granted remuneration in the form of equity-settled share-based payment (options and restricted shares). The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value of an option granted is determined using the Binomial Lattice option-pricing model (“Binomial model”). The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option. The fair value of the restricted shares granted is determined using the closing price of the Company's share, as quoted in the Tel-Aviv Stock Exchange (TASE) on the day of the grant. The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in equity during the period which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employees become entitled to the award (“the vesting period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting date includes the Group’s best estimate of the number of equity instruments that will ultimately vest. No expense is recognized for awards that do not ultimately vest. If the Company modifies the conditions on which equity-instruments were granted, an additional expense is recognized for any modification that increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee/other service provider at the modification date. s. Research and development expenditures Research expenses are recognized in profit or loss when incurred. t. Loss per share Loss per share is calculated by dividing the net loss attributable to equity holders of the Company by the weighted number of ordinary shares outstanding during the period. The Company does not have dilutive instruments since it generates loss in each of the three years in the period ended December 31, 2021. u. New standards in the period prior to their adoption 1. Amendment to IAS 16, "Property, Plant and Equipment": In May 2020, the IASB issued an amendment to IAS 16, "Property, Plant and Equipment". The amendment prohibits a company from deducting from the cost of property, plant and equipment ("PP&E") consideration received from the sales of items produced while the company is preparing the asset for its intended use. Instead, the company should recognize such consideration and related costs in profit or loss. The amendment is effective for annual reporting periods beginning on or after January 1, 2022, with earlier application permitted. The amendment is to be applied retrospectively, but only to items of PP&E made available for use on or after the beginning of the earliest period presented in the financial statements in which the company first applies the amendment. The company should recognize the cumulative effect of initially applying the Amendment as an adjustment to the opening balance of retained earnings at the beginning of the earliest period presented. The Company estimates that the application of the amendment is not expected to have a material impact on the financial statements. 2. Amendment to IAS 37, "Provisions, Contingent Liabilities and Contingent Assets": In May 2020, the IASB issued an amendment to IAS 37, regarding which costs a company should include when assessing whether a contract is onerous. According to the amendment, costs of fulfilling a contract include both the incremental costs (for example, raw materials and direct labor) and an allocation of other costs that relate directly to fulfilling a contract (for example, depreciation of an item of property, plant and equipment used in fulfilling the contract). The amendment is effective for annual periods beginning on or after January 1, 2022 and applies to contracts for which all obligations in respect thereof have not yet been fulfilled as of January 1, 2022. Early application is permitted. The Company estimates that the application of the amendment is not expected to have a material impact on the financial statements. 3. Amendment to IAS 8, "Accounting Policies, Changes to Accounting Estimates and Errors": In February 2021, the IASB issued an amendment to IAS 8, "Accounting Policies, Changes to Accounting Estimates and Errors", in which it introduces a new definition of "accounting estimates". Accounting estimates are defined as "monetary amounts in financial statements that are subject to measurement uncertainty". The amendment clarifies the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. The amendment is to be applied prospectively for annual reporting periods beginning on or after January 1, 2023 and is applicable to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. Early application is permitted. The Company is evaluating the effects of the amendment on its financial statements. |
SIGNIFICANT ACCOUNTING JUDGMENT
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS USED IN THE PREPARATION OF THE FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Judgments Estimates And Assumptions Used In Preparation Of Financial Statements | |
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS USED IN THE PREPARATION OF THE FINANCIAL STATEMENTS | NOTE 3: SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS USED IN THE PREPARATION OF THE FINANCIAL STATEMENTS In the process of applying the significant accounting policies in the financial statements, the Group has made the following judgments, estimates and assumptions, which have the most significant effect on the amounts recognized in the financial statements: a. Judgments: Classification of leases – the Company as a lessor: In order to determine whether to classify a lease as a finance lease or an operating lease, the Company evaluates whether the lease transfers substantially all the risks and rewards incidental to ownership of the asset. Determining the fair value of share-based payment transactions: The fair value of share-based payment transactions is determined upon initial recognition by the Binomial model. The Binomial model is based on share price and exercise price and assumptions regarding expected volatility, term of share option, dividend yield and risk-free interest rate. b. Estimates and assumptions: The preparation of the financial statements requires management to make estimates and assumptions that have an effect on the application of the accounting policies and on the reported amounts of assets, liabilities, revenues and expenses. Changes in accounting estimates are reported in the period of the change in estimate. The key assumptions made in the financial statements concerning uncertainties at the reporting date and the critical estimates computed by the Group that may result in a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. ● Grants from the IIA: Government grants received from the IIA are recognized as a liability if future economic benefits are expected from the research and development activity that will result in royalty-bearing sales. There is uncertainty regarding the estimated future cash flows and discount rate used to measure the amount of the liability. ● Legal claims: In estimating the likelihood of outcome of legal claims filed against the Company and its investees, the companies rely on the opinion of their legal counsel. These estimates are based on the legal counsel's best professional judgment, taking into account the stage of proceedings and legal precedents in respect of the different issues. Since the outcome of the claims will be determined in courts, the results could differ from these estimates. · Deferred tax assets Deferred tax assets are recognized for unused carryforward tax losses and deductible temporary differences to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the timing and level of future taxable profits, its source and the tax planning strategy. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 4: CASH AND CASH EQUIVALENTS Schedule of cash and cash equivalents December 31, 2021 2020 Cash for immediate withdrawal $ 15,471 $ 15,457 Cash equivalents—short-term deposits 1,450 1,504 Total $ 16,921 $ 16,961 |
SHORT-TERM DEPOSITS
SHORT-TERM DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Deposits | |
SHORT-TERM DEPOSITS | NOTE 5: SHORT-TERM DEPOSITS Schedule of short-term deposits at banks December 31, 2021 2020 Bank deposits $ 40,428 $ 221 Short-term deposits at banks are for periods of up to one year. The deposits earn annual interest at the respective term of the deposits of approximately 0.76 |
TRADE RECEIVABLES, NET
TRADE RECEIVABLES, NET | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables [abstract] | |
TRADE RECEIVABLES, NET | NOTE 6: TRADE RECEIVABLES, NET a. Trade receivables, net: Schedule of trade receivables, net December 31, 2021 2020 Open accounts (1) $ 7,588 $ 6,906 Credit cards — 108 Less—allowance for doubtful accounts (1,256 ) (1,432 ) Trade receivables, net $ 6,332 $ 5,582 (1) Trade receivables generally have 90-day credit terms. Certain customers payments are made through monthly credit card transactions. b. Movement in allowance for doubtful accounts: Schedule of allowance for doubtful account U.S. dollars in Balance as of January 1, 2020 $ 930 Provision for the year 1,058 Derecognition of bad debts (556 ) Balance as of December 31, 2020 1,432 Provision for the year 323 Derecognition of bad debts (499 ) Balance as of December 31, 2021 $ 1,256 Following is information about the credit risk exposure of the Company’s trade receivables: Schedule of credit losses exposure December 31, 2021: U.S. dollars in thousands Not past < 30 30 - 60 61 - 90 91 - 120 >120 Total U.S. dollars in thousands Gross carrying amount $ 2,715 $ 910 $ 847 $ 693 $ 435 $ 1,988 $ 7,588 Allowance for doubtful accounts $ 7 $ 64 $ 59 $ 97 $ 65 $ 964 $ 1,256 Trade receivables, net 2,708 846 788 596 370 1,024 $ 6,332 December 31, 2020: U.S. dollars in thousands Not past < 30 30 - 60 61 - 90 91 - 120 >120 Total U.S. dollars in thousands Gross carrying amount $ 1,757 $ 978 $ 673 $ 670 $ 418 $ 2,518 $ 7,014 Allowance for doubtful accounts $ 4 $ 5 $ 7 $ 33 $ 159 $ 1,224 $ 1,432 Trade receivables, net 1,753 973 666 637 259 1,294 $ 5,582 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Other Current Assets | |
OTHER CURRENT ASSETS | NOTE 7: OTHER CURRENT ASSETS Schedule of other current assets December 31, 2021 2020 Government authorities $ 388 $ 212 Accrued income-IIA — 208 Consumables 200 442 Prepaid expenses and other 1,178 672 Other current assets $ 1,766 $ 1,534 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 8: PROPERTY AND EQUIPMENT, NET December 31, 2021: Schedule of property and equipment, net System Leased systems Laboratory Right of Office Leasehold Total Cost: Balance at January 1, 2021 $ 3,642 $ 8,620 $ 845 $ 1,335 $ 96 $ 52 $ 14,590 Additions 5,448 — 325 587 39 17 6,416 Transfer to Leased systems (985 ) 985 — — — — — Reductions (3,642 ) (***) (2,142 ) (**) — (287 ) — — (6,071 ) Balance at December 31, 2021 4,463 7,463 1,170 1,635 135 69 14,935 Accumulated depreciation: Balance at January 1, 2021 $ — $ 3,422 $ 775 $ 735 $ 56 $ 52 $ 5,040 Additions — 1,126 82 470 7 1 1,686 Reductions — (898 ) — (224 ) — — (1,122 ) Balance at December 31, 2021 — 3,650 857 981 63 53 5,604 Depreciated cost at December 31, 2021 $ 4,463 $ 3,813 $ 313 $ 654 $ 72 $ 16 $ 9,331 December 31, 2020: System Leased systems Laboratory Right of Office Leasehold Total Cost Balance at January 1, 2020 $ 3,117 $ 8,151 $ 831 $ 1,414 $ 90 $ 52 $ 13,655 Additions 3,989 14 48 6 4,057 Transfer to Leased systems (1,580 ) 1,580 Reductions (1,884 ) (***) (1,111 ) (**) (127 ) (3,122) Accumulated depreciation: Balance at December 31, 2020 3,642 8,620 845 1,335 96 52 14,590 Balance at January 1, 2020 2,660 694 460 50 52 3,916 Additions 1,180 81 351 6 1,618 Reductions (418 ) (76 ) (494) Balance at December 31, 2020 3,422 775 735 56 52 5,040 Depreciated cost at December 31, 2020 $ 3,642 $ 5,198 $ 70 $ 600 $ 40 $ (*) $ 9,550 (*) Represents an amount lower than $ 1 (**) Derived mainly from returned systems as well as sale of leased systems. (***) Mainly includes impairment and disposals charge of $1,295 and $1,161 and system components sold in the amount of $1,789 and $723 for the years ended December 31, 2021 and 2020, respectively. |
OTHER ACCOUNTS PAYABLE
OTHER ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
Other Accounts Payable | |
OTHER ACCOUNTS PAYABLE | NOTE 9: OTHER ACCOUNTS PAYABLE Schedule of other accounts payable December 31, 2021 2020 Employee and payroll accruals $ 1,139 $ 972 Accrued expenses 2,899 2,266 Tax payable 18 — Liabilities to related parties (1) 236 102 Lease liabilities 500 429 Other accounts payable $ 4,792 $ 3,769 (1) A current non-interest bearing account. |
NON-CURRENT LIABILITIES
NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Non-current Liabilities | |
NON-CURRENT LIABILITIES | NOTE 10: NON-CURRENT LIABILITIES Composition: Schedule of non-current liabilities December 31, 2021 2020 Deferred revenues (a) 3,157 1,772 Lease liabilities (b) 254 243 Other liabilities 8 38 Total non-current liabilities $ 3,419 $ 2,053 a. Including an amount of $1,479 and $1,405 relating to deferred distribution fees received as of the years ended December 31 2021 and 2020, respectively. For more information see note 14c. b. Lease liabilities: Schedule of lease liabilities U.S. dollars in Maturity analysis: Less than one year 537 One to five years 258 Total lease commitments 795 Impact of discounting remaining lease payments (41 ) Lease liabilities as of December 31, 2021: 754 Current 500 Non-current 254 Total $ 754 U.S. dollars in Maturity analysis: Less than one year 463 One to five years 312 Total lease commitments 775 Impact of discounting remaining lease payments (103 ) Total lease liabilities as of December 31, 2020 672 Current 429 Non-current 243 Total $ 672 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS | NOTE 11: FINANCIAL INSTRUMENTS a. Financial risks factors: The Company is exposed to foreign currency risk, interest risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks in accordance with the policies approved by the board of directors. 1. Foreign currency risk: The currency exposure arises from current accounts and deposits that are mainly managed in NIS and from liability in respect of employee payroll accruals that are paid in NIS. 2. Interest rate risk: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term liabilities in respect of government grants received from IIA. The repayment of grants received by the Company from 2018 have interest rate that reference LIBOR and are expected to be repaid after 2021. In March 2021, the IBA released the LIBOR cessation statement, pursuant to which the IBA publicly announced that it intends to cease publication of the USD LIBOR settings on June 30, 2023. In addition, the FCA provided that starting January 1, 2022, new use of USD LIBOR is banned, subject to limited exceptions. As of December 31, 2021, the carrying amount of the financial liabilities which is exposed to fluctuations of the LIBOR interest amounts to $ 721 3. Credit risk: Credit risk is the risk that a counterparty will not meet its obligations as a customer or under a financial instrument leading to a loss to the Group. The Group is exposed to credit risk from its operating activity (primarily trade receivables). 4. Liquidity risk: The Group monitors its risk of a shortage of cash using a quarterly budget. The table below presents the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments: December 31, 2021: Less than 1 to 2 2 to 3 3 to 4 4 to 5 > 5 Total Trade payables $ 1,103 $ $ $ $ $ $ 1,103 Other accounts payable 4,292 4,292 Liability in respect of research and development grants 1,103 1,373 1,793 2,270 2,678 3,190 12,407 Lease liability 537 158 100 795 $ 7,035 $ 1,531 $ 1,893 $ 2,270 $ 2,678 $ 3,190 $ 18,597 December 31, 2020: Less than 1 to 2 2 to 3 3 to 4 4 to 5 > 5 Total Trade payables $ 781 $ $ $ $ $ $ 781 Other accounts payable 3,340 3,340 Liability in respect of research and development grants 388 713 893 1,261 1,793 8,108 13,156 Lease liability 463 299 13 775 $ 4,972 $ 1,012 $ 906 $ 1,261 $ 1,793 $ 8,108 $ 18,052 b. Sensitivity tests relating to changes in foreign currency: Schedule of sensitivity tests relating to changes in foreign currency December 31, 2021 2020 Sensitivity test to changes in the NIS exchange rate: Gain (loss) from the change: Increase of 5% in exchange rate $ 130 $ (50 ) Decrease of 5% in exchange rate $ (130 ) $ 50 As of December 31, 2021, the Company has excess of financial liabilities over financial assets in NIS in relation to US dollar of $ 2,601 As of December 31, 2021, the Company has excess of financial assets over financial liabilities in Euro and Yen in relation to US dollar of $ 1,694 and $391, respectively. An increase or decrease of 5% of the US dollar relative to the Euro or Yen would not have a significant effect on the Company. Sensitivity tests and principal work assumptions: The selected changes in the relevant risk variables were determined based on management’s estimate as to reasonable possible changes in these risk variables. The Company has performed sensitivity tests of principal market risk factors that are liable to affect its reported operating results or financial position. The sensitivity tests present the profit or loss in respect of each financial instrument for the relevant risk variables chosen for that instrument as of each reporting date. The test of risk factors was determined based on the materiality of the exposure of the operating results or financial condition of each risk with reference to the functional currency and assuming that all the other variables are constant. |
EMPLOYEE BENEFITS AND LIABILITI
EMPLOYEE BENEFITS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits And Liabilities | |
EMPLOYEE BENEFITS AND LIABILITIES | NOTE 12: EMPLOYEE BENEFITS AND LIABILITIES Employee benefits consist of short-term and post-employment benefits. Defined contribution plans: Section 14 to the Severance Pay Law, 1963 applies to all of the Company’s employees pursuant to which the fixed contributions paid by the Group into pension funds and/or policies of insurance companies release the Group from any additional liability to employees for whom said contributions were made. These contributions benefits represent defined contribution plans. Expense in respect of defined contribution plans was $ 329 258 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2021 | |
Taxes On Income | |
TAXES ON INCOME | NOTE 13: TAXES ON INCOME a. Tax rates applicable to the Company and subsidiaries: 1. Tax rate applicable to the Company and Brain R&D: The Israeli corporate income tax rate was 23 A company is taxable on its real capital gains at the corporate income tax rate in the year of sale. 2. Tax rate applicable to US subsidiaries: The subsidiaries are subject to U.S federal tax at the rate of 21%. On December 22, 2017, the Tax Cuts and Jobs Act (the "Tax Act") was signed into law making significant changes to U.S. income tax law. These changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years 2018 onwards and created new taxes on certain foreign-sourced earnings and certain related-party payments. The Tax Act required the Company to pay U.S. income taxes on accumulated foreign subsidiaries earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. c. Tax assessments: The Company and the Israeli subsidiary received final tax assessments through tax year 2016. d. Carryforward losses for tax purposes: Carryforward losses for tax purposes as of December 31, 2021 amount to approximately $ 70 e. Deferred taxes: The Company did not record deferred tax assets with respect to net operating losses incurred by the Company and the Israeli subsidiary since it is not probable that they will generate a taxable income in future years. The Company recorded deferred tax assets in the amount of $ 458 Tax reconciliation: f. For the years ended December 31, 2021 and 2020, the main differences between the statutory corporate tax benefits of $ 1,476 1,184 43 237 |
CONTINGENT LIABILITIES, COMMITM
CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of contingent liabilities [abstract] | |
CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES | NOTE 14: CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES a. Brain R&D received from the Israeli Government participation grants in research and development and, in return, it is currently obligated to pay royalties amounting to 3% of sales of products from such grants up to 100% of total grants received. The Company's provision for royalties payable to the IIA as of December 31, 2021 and 2020 amounts to $ 6,899 6,231 As of December 31, 2021, the maximum royalties payable by the Company in the future in respect of active projects is $ 12,407 3,403 b. The Company entered into a few distribution agreements with third parties regarding different territories around the world. According to these distribution agreements, the third parties are generally granted the exclusive right to market, distribute, lease and/or sale, use and promote sales of the systems in the relevant territories for a period defined in the agreement, generally ranging from 3 to 10 years. The Company supplies the systems to the distributors, and they promote and provide various services (such as installation, training and maintenance) to local costumers. These distributors are typically contractually committed to meet minimum order quantities, absent which may serve as grounds for termination. c. In September 2013, the Company entered into a distribution agreement in Japan with Century Medical Inc., a member of the Itochu concern, which specializes in the import and distribution of medical systems and equipment in Japan. According to the agreement, the distributor was granted the exclusive right to market the Company’s system for the treatment of major depression in patients in Japan for a ten-year period which begins after the required regulatory approvals for marketing the system in Japan and after either obtaining reimbursement or deployment of a commercial product to a clinical site. If the distributor meets the minimum quantities which it has committed during the contractual term, the agreement will be extended for an additional five year period. The distributor is granted a right of first offer to distribute the Company’s system in Japan without further codification. In consideration for the above, the distributor is obligated to pay the Company distribution fees of 190 million Yen (approximately $1.8 million), whereby 100 million Yen paid in September 2013 and 90 million Yen paid in 2019. In each year of the agreement in which the distributor meets the respective annual predetermined revenue target, 10 The agreement sets a minimum payment threshold to the Company that is examined every few years throughout the contractual term. If the distributor does not qualify for the minimum payment threshold at the end of each period, the Company will be entitled to terminate the distribution agreement, unless the parties reach another agreement between them. The agreement further determines that the distributor will act on its account to receive the regulatory approvals that are required to market the Company’s system for the treatment of depression in patients in Japan and to receive reimbursement coverage at the price range established in the agreement. On January 22, 2018, the distributor in Japan applied to the Pharmaceutical and Medical Devices Agency (“PMDA”), which is responsible for all import and export licenses of pharmaceuticals and medical equipment to Japan, for approval of marketing and selling the Company’s systems in Japan. On January 2019, approval of the PMDA was received. The Company is currently working through its distributor in Japan with the relevant bodies in Japan to update the local society guidelines to include Deep TMS in order to obtain reimbursement coverage under the Japanese National Health Insurance Plan. d. In March 2014, the Company entered into an exclusive marketing and distribution agreement of the Company’s system with a third party in Israel for a maximum period of 15 years, subject to meeting minimum sales targets as set in the agreement. In April 2014, the distributor paid the Company a one-time exclusivity fee of NIS 1 600 e. License agreements: 1. In July 2003, Inc signed a license agreement with the agencies of the U.S. Public Health Service within the U.S. Department of Health and Human Services (“PHS”), according to which the Company was granted an exclusive license to develop, manufacture, make use of, market, sell and import products and processes to be developed in the framework of the license agreement with respect to TMS and a right to enter into sublicense agreements, subject to approval of the PHS. In return, Inc is committed to pay PHS royalties at fixed annual amount of $2 from January 1, 2004 and royalties of 2% of net sales beyond this amount as defined in the agreement. In addition, if Inc enters into a sub-license agreement, it is committed to pay royalties of 8 The agreement is valid until the expiration of the last to expire of the licensed patent rights under the agreement. PHS is entitled to cancel the agreement if Inc does not comply with the conditions detailed in the agreement. 2. In June 2005 and March 2010, Inc signed a research and licensing agreement and addendum with Yeda Research and Development Company Ltd. (“Yeda”), according to which Inc was granted an exclusive license to intellectual property that can be used for research, development, marketing and manufacturing of products in the field of TMS treatment and may have the right to grant sublicenses subject to conditions specified in the agreement in consideration of royalty payment as follows: a) 1% of net sales systems based upon certain patents (which include technology licensed from PHS); b) 3% for the first $10,000 of net sales, and 2% for net sales over $10,000, for all other Deep TMS products solely based on certain patents licensed exclusively from Yeda provided however in the event that the products are sold to a sublicensee and are thereafter sold by such sublicensee, the royalties paid to Yeda will be based on the higher of the net sales by the licensee or the net sales of the sale by the sublicensee. c) 4%-8% of the net cash proceeds that the Company receives in respect of granting sublicenses or options for sublicenses dependent on the patents licensed. Royalties are payable at the later of 15 years after the first commercial sale or the patent life (20 years through October 2021). The agreement expires at the later of: the expiration of the last patent, 15 years after Inc starts to sell products integrating the patent and after a period of 20 years during which no sales are made. The license agreement with Yeda may be subject to modifications in the event that the license agreement with PHS is modified (see 1, above) and may be cancelled based on various conditions, including the cancellation of the PHS agreement. On February 22, 2018, Inc and Yeda signed an additional addendum to the agreement (the "fifth addendum"), according to which Inc received the right to examine an additional invention based upon the patent issued in connection with research in the field of rotational electrical fields owned by Yeda. Under the fifth addendum, the Company has the right to include the aforementioned invention and the intellectual property accompanying it under the Yeda license agreement. In January 2020, the Company exercised the right granted to it under the fifth addendum, and accordingly royalties on net sales of products which are based on the use of the invention and know-how subject to the fifth addendum will be paid to Yeda at increased rates of 1.6%-2% in addition to the royalties described above and, in certain cases, at a flat rate of 2%. In respect of products under the fifth addendum that are not based on patents or research results for which the license was granted according to the original agreement (excluding the fifth addendum), royalties on net sales will be at the fixed rate of 5 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
EQUITY | NOTE 15: EQUITY a. Composition of share capital: Schedule of ordinary shares December 31, 2021 December 31, 2020 Authorized Issued and Authorized Issued and Number of shares Ordinary shares of NIS 0.04 par value each 120,000,000 32,911,134 35,000,000 22,250,534 b. Movement in share capital: Issued and outstanding capital: Schedule of issued and outstanding share capital Number of NIS par Balance as of January 1, 2021 22,250,534 233,167 Issuance of shares - public offering 10,630,600 128,622 Vesting of restricted shares 30,000 1,200 Balance as of December 31, 2021 32,911,134 362,989 c. Rights attached to shares: Ordinary shares confer their holders rights to receive dividends in cash and in Company’s shares, right to nominate the Company’s directors and rights to participate in distribution of dividends upon liquidation in proportion to their holdings. Also, Ordinary shareholders have one vote at the shareholders’ meeting such that each share confers one vote to its holder. d. In February 2021, the Company closed an underwritten public offering of 5,315,300 American Depositary Shares (“ADSs”) resulting in $45.2 million in gross proceeds to the Company, before deducting underwriting discounts and commissions and offering expenses. Each ADS represents two ordinary shares. e. Capital management in the Company: The Company’s capital management objectives are to preserve the Group’s ability to ensure business continuity thereby creating a return for the shareholders, investors and other interested parties. The Company is not under any minimal equity requirements nor is it required to attain a certain level of capital return. |
SHARE-BASED PAYMENT
SHARE-BASED PAYMENT | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment | |
SHARE-BASED PAYMENT | NOTE 16: SHARE-BASED PAYMENT a. The expense recognized in the financial statements for services received is shown in the following table: Schedule of expense recognized in the financial statements for services Year ended 2021 2020 2019 Equity-settled share-based payment plans to employees, directors and consultants $ 1,893 $ 799 $ 1,263 b. The share-based payment transactions that the Company granted to its employees, directors and consultants are shown in the following table: Schedule of share-based payment Range of exercise prices Options outstanding 31, Weighted Average remaining contractual Term Weighted Average exercise price ($) Options exercisable 4.67 – 4.91 1,482,383 4.92 4.71 1,053,417 3.41 70,000 9.00 3.41 17,500 *) Options and restricted shares. **) As of grant date. c. The fair value of the Company’s options granted for the years ended December 31, 2021, 2020 and 2019 was estimated using the Binomial model with the following assumptions: Schedule of fair value of options granted Year ended December 31, 2021 2020 2019 Dividend yield (%) — — — Expected volatility (%) 50.49 – 64.44 48.00 – 76.78 40.06 – 48.09 Risk-free interest rate (%) 0.06 – 1.59 0.14 – 0.62 1.61 – 1.73 Expected exercise factor 2.8 2.8 2.8 d. Movement of options during the year: Schedule of share-based payment movement during the year Year ended December 31, 2021 2020 Number of Weighted Number of Weighted $ $ Outstanding at January 1, 1,522,975 $ 7.5 2,213,812 $ 7.1 Granted 135,000 4.7 285,008 5.4 Exercised — — (246,642 ) 5.8 Expired (52,625 ) 5.9 (535,667 ) 7.4 Forfeited (52,967 ) 6.8 (193,916 ) 6.7 Outstanding at December 31, 1,552,383 $ 4.6 1,522,975 $ 7.5 Exercisable at December 31, 1,070,917 $ 4.7 839,418 $ 9.5 (*) The exercise price of all options denominated in NIS and was translated to USD in the table above using the exchange rate as of December 31, 2021 and 2020, respectively. The contractual life of the options is ten years from the grant date. The weighted average remaining contractual life for the options outstanding as of December 31, 2021 and 2020 was approximately five 5 6 In the second quarter of 2021, the Company completed a repricing of outstanding options via an exchange offer pursuant to which the Company exchanged previously granted options with new options. For those that chose to participate in the exchange, the repricing resulted in an updated exercise price of $4.675 or NIS 15.26 per ordinary share, and is otherwise subject to the same expiration date, vesting schedule and other terms as previously existed prior to the exchange offer. Several employees chose not to participate in the exchange because their options were subject to a lower exercise price than that offered in the repricing. Accordingly, the exercise price range for options outstanding as of December 31, 2021 was NIS 10.61 15.26 e. Movement of restricted shares during the year: Schedule of movement of restricted shares during the year 2021 2020 Number of Number of Outstanding at January 1, 45,000 $ — Granted 549,730 60,000 Vested (15,000 ) (15,000 ) Forfeited (20,200 ) — Outstanding at December 31, 559,530 $ 45,000 |
ADDITIONAL INFORMATION TO THE S
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2021 | |
Additional Information To Statements Of Comprehensive Loss | |
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS | NOTE 17: ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS a. Additional information on revenues: Revenues reported in the financial statements for each group of similar products and services: Schedule of additional information on revenues Year ended 2021 2020 2019 Revenues from lease $ 13,449 $ 13,628 $ 13,218 Revenues from sale 16,208 8,429 9,883 Revenue $ 29,657 $ 22,057 $ 23,101 Geographic information: Revenues reported in the financial statements derived from the Company’s country of domicile (Israel) and foreign countries based on the location of the customers, are as follows: Schedule of geographic information Year ended December 31, 2021 % 2020 % 2019 % U.S. $ 26,094 88 $ 19,330 88 $ 20,636 89 Europe 2,031 7 1,847 8 1,353 6 Israel 149 1 150 1 267 1 Other 1,383 4 730 3 845 4 $ 29,657 100 $ 22,057 100 $ 23,101 100 b. Cost of revenues: Schedule of cost of revenues Year ended 2021 2020 2019 Cost of revenues - lease $ 3,090 $ 3,201 $ 2,656 Cost of revenues - sales 3,509 1,857 2,473 Cost of revenues $ 6,599 $ 5,058 $ 5,129 c. Research and development expenses, net: Schedule of research and development expenses, net Year ended 2021 2020 2019 Salaries and related benefits $ 3,580 $ 3,289 $ 3,338 Subcontractors 961 1,530 2,620 Laboratory materials 665 275 687 Patents 204 288 334 Share-based payment 411 182 399 Travel 28 2 112 Depreciation 107 87 39 Other 538 383 604 Less—Government grants (101 ) (213 ) (257 ) Research and development expenses, net $ 6,393 $ 5,823 $ 7,876 d. Selling and marketing expenses: Schedule of selling and marketing expenses Year ended 2021 2020 2019 Salaries and related benefits $ 8,887 $ 6,458 $ 6,419 Agent commissions 392 335 221 Marketing 4,782 3,627 5,239 Travel 1,121 611 1,176 Share-based payment 698 252 214 Selling and marketing expenses $ 15,880 $ 11,283 $ 13,269 e. General and administrative expenses: Schedule of general and administrative expenses Year ended 2021 2020 2019 Salaries and related benefits $ 2,283 $ 1,339 $ 1,774 Professional fees and office expenses 2,031 1,609 1,770 Depreciation 407 351 81 Travel 10 17 222 Allowance for doubtful accounts 323 1,058 835 Share-based payment 730 348 621 $ 5,784 $ 4,722 $ 5,303 f. Finance income and expense: Schedule of finance income and expense Year ended 2021 2020 2019 Finance income: Interest-income revaluation of bank deposits $ 225 $ 61 $ 175 Revaluation of warrants 30 40 62 Exchange rate differences — 448 — Finance income $ 255 $ 549 $ 237 Finance expense: Liability in respect of research and development grants $ 1,171 $ 762 $ 969 Interest expense and amortization of deferred costs- loan from bank — — 283 Bank commissions 81 40 108 Exchange rate differences 363 — 192 Interest expense of lease liability 60 66 115 Finance expense $ 1,675 $ 868 $ 1,667 |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
NET LOSS PER SHARE | NOTE 18: NET LOSS PER SHARE Number of shares and loss used in the computation of net loss per share: Schedule of net loss per share Year ended December 31, 2021 2020 2019 Weighted Loss Weighted Loss Weighted Loss Used in the computation of basic and diluted net loss 31,154,258 $ 6,462 22,453,025 $ 5,385 20,506,202 $ 10,328 *) Computation of diluted loss per share did not include potential ordinary shares that would result from conversion of outstanding options and warrants, since their conversion has anti-dilutive effect. |
BALANCES AND TRANSACTIONS WITH
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2021 | |
Balances And Transactions With Related Parties | |
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | NOTE 19: BALANCES AND TRANSACTIONS WITH RELATED PARTIES a. Balances with interested and related parties: Composition: As of December 31, 2021 Schedule of balances with interested and related parties Key Other Other accounts payable $ 192 $ 45 As of December 31, 2020 Key Other Other accounts payable $ 64 $ 38 b. Benefits to interested and related parties: Schedule of benefits to interested and related parties Year ended 2021 2020 2019 Salary to those employed by the Company or on its behalf $ 885 $ 769 $ 945 Directors’ fees to those not employed by the Company or on its behalf $ 148 $ 60 $ 90 Number of individuals to whom the salary and benefits relate: Related and interested parties employed by the Company or on its behalf 3 2 3 Directors not employed by the Company 5 6 8 Benefits to interested and related parties 8 8 11 c. Key management personnel: Schedule of key management personnel Year ended 2021 2020 2019 Short-term benefits $ — $ — $ 3 Share-based payment to those employed by the Company or on its behalf $ 445 $ 182 $ 190 Share-based payment to those not employed by the Company or on its behalf $ 90 $ 150 $ 147 d. Transactions with interested and related parties: Year ended December 31, 2021 Schedule of transactions with interested and related parties Key Other Research and development expenses $ 112 $ 82 General and administrative expenses 1,137 238 $ 1,249 $ 320 Year ended December 31, 2020 Key Other Research and development expenses $ 236 $ — General and administrative expenses 619 201 Selling and marketing 150 — $ 1,005 $ 201 Year ended December 31, 2019 Key Other Research and development expenses $ 113 $ 81 General and administrative expenses 943 238 $ 1,056 $ 319 *) Some of the key management personnel are interested parties by virtue of holdings. e. Mr. Christopher R. von Jako, PhD commenced his role as the Company’s President and Chief Executive Officer (CEO) effective January 1, 2020. Key employment terms include an annual gross base salary and an annual performance-based bonus of up to six months of his base salary and equity grant of RSUs as further detailed in Note 16b. f. For information regarding the fair value of the options granted to directors, see Note 16b. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Basis of presentation of the financial statements | a. Basis of presentation of the financial statements These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The Company’s financial statements have been prepared on a cost basis, except for certain financial instruments which are presented at fair value through profit or loss. The Company has elected to present the profit or loss items using the function of expense method. |
Consolidated financial statements | b. Consolidated financial statements The consolidated financial statements comprise the financial statements of companies that are controlled by the Company (subsidiaries). Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Potential voting rights are considered when assessing whether an entity has control. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases. The consolidated financial statements of the Company and of the subsidiaries are prepared as of the same dates and periods. The consolidated financial statements are prepared using uniform accounting policies by all companies in the Group. Significant intragroup balances and transactions and gains or losses resulting from intragroup transactions are eliminated in full in the consolidated financial statements. |
Functional currency, presentation currency and foreign currency | c. Functional currency, presentation currency and foreign currency 1. Functional currency and presentation currency: The functional currency is the currency that best reflects the economic environment in which the Company operates and conducts its transactions, is separately determined for each Group entity and is used to measure its financial position and operating results. The Group determines the functional currency of each Group entity. The Company’s functional and presentation currency is the US Dollar for all reported periods and subsidiaries 2. Transactions, assets and liabilities in foreign currency: Transactions denominated in foreign currency are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are translated at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences, other than those capitalized to qualifying assets or accounted for as hedging transactions in equity, are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currency and measured at cost are translated at the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currency and measured at fair value are translated into the functional currency using the exchange rate prevailing at the date when the fair value was determined. |
Cash equivalents | d. Cash equivalents Cash equivalents are considered as highly liquid investments, including unrestricted short-term bank deposits with an original maturity of three months or less from the date of investment or with a maturity of more than three months, but which are redeemable on demand without penalty and which form part of the Group's cash management. |
Short-term deposits | e. Short-term deposits Short-term bank deposits are deposits with an original maturity of more than three months from the date of investment and which do not meet the definition of cash equivalents. The deposits are presented according to their terms of deposit. |
Revenue recognition | f. Revenue recognition Revenue from contracts with customers is recognized when the control over the goods or services is transferred to the customer. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes). In determining the amount of revenue from contracts with customers, the Company evaluates whether it is a principal or an agent in the arrangement. The Company is a principal when the Company controls the promised goods or services before transferring them to the customer. In these circumstances, the Company recognizes revenue for the gross amount of the consideration. When the Company is an agent, it recognizes revenue for the net amount of the consideration, after deducting the amount due to the principal. The Company primarily generates revenue from two major streams: (a) sale of systems and related services and (b) lease of systems. Revenues from sale of systems and related services: Revenue from sale of systems is recognized at the point in time when control of the system is transferred to the customer, generally upon shipment of the system to the customer. Revenue from rendering of extended warranty services is recognized over time, during the period the customer simultaneously receives and consumes the benefits provided by the Company’s performance. The Company charges its customers based on payment terms agreed upon in specific agreements. When payments are made before or after the service is performed, the Company recognizes the resulting contract asset or liability. Revenue from operating leases: A lease in which substantially all the risks and rewards incidental to ownership of the leased asset have not been transferred to the lessee is classified as an operating lease. Lease payments are recognized as income in profit or loss on a straight-line basis over the lease term. Initial direct costs incurred in respect of the lease agreement are added to the carrying amount of the underlying asset and recognized as an expense over the lease term on the same basis as the lease income. Costs of obtaining a contract: In order to obtain certain contracts with customers, the Company incurs incremental costs in obtaining the contract (such as sales commissions which are contingent on making binding sales). Costs incurred in obtaining the contract with the customer which would not have been incurred if the contract had not been obtained and which the Company expects to recover are recognized as an asset and amortized on a systematic basis that is consistent with the provision of the services under the specific contract. An impairment loss in respect of capitalized costs of obtaining a contract is recognized in profit or loss when the carrying amount of the asset exceeds the remaining amount of consideration that the Company expects to receive for the goods or services to which the asset relates less the costs that relate directly to providing those goods or services and that have not been recognized as expenses. The Company has elected to apply the practical expedient allowed by IFRS 15 according to which incremental costs of obtaining a contract are recognized as an expense when incurred if the amortization period of the asset is one year or less. Contract liabilities: A contract liability, presented as deferred revenues, is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. Deferred revenue will be recognized as revenue in profit and loss when the work is performed. The Company elected to apply the practical expedient in IFRS 15 and does not provide disclosure of the remaining unsatisfied performance obligations with respect to contracts that have a term of up to one year. Allocating the transaction price: For contracts that consist of more than one performance obligation at contract inception, the Company allocates the contract transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis. The stand-alone selling price is the price at which the Company would sell the promised goods or services separately to a customer. |
Government grants | g. Government grants Government grants are recognized when there is reasonable assurance that the grants will be received and the Company will comply with all attached conditions. Government grants received from the Israel Innovation Authority (“IIA”) are recognized upon receipt as a liability if future economic benefits are expected from the research project, that will result in royalty-bearing sales. A liability for the grant is first measured at fair value using a discount rate that reflects a market rate of interest. The difference between the amount of the grant received and the fair value of the liability is accounted for as a government grant and recognized as a reduction of research and development expenses. After initial recognition, the liability is measured at amortized cost using the effective interest method. Royalty payments are treated as a reduction of the liability. If no economic benefits are expected from the research activity, the grant received are recognized as a reduction of the related research and development expenses. In that event, the royalty obligation is treated as a contingent liability in accordance with IAS 37. Amounts paid as royalties are recognized as settlement of the liability. |
Taxes on income | h. Taxes on income Current or deferred taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or equity. 1. Current taxes: The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted at the reporting date, as well as adjustments required in connection with the tax liability in respect of previous years. 2. Deferred taxes: Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes. Deferred taxes are measured at the tax rate that is expected to apply when the asset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is not probable that they will be utilized. Temporary differences that can be deducted for which deferred tax assets had not been recognized are reviewed at each reporting date and a respective deferred tax asset is recognized to the extent that utilization is probable. Taxes that would apply in the event of the disposal of investments in subsidiaries have not been taken into account in computing deferred taxes, as long as the disposal of the investments in subsidiaries is not probable in the foreseeable future. Also, deferred taxes that would apply in the event of distribution of earnings by subsidiaries as dividends have not been taken into account in computing deferred taxes, since the distribution of dividends does not involve an additional tax liability or since it is the Company’s policy not to initiate distribution of dividends from a subsidiary that would trigger an additional tax liability. Deferred taxes are offset if there is a legally enforceable right to offset a current tax asset against a current tax liability and the deferred taxes relate to the same taxpayer and the same taxation authority. |
Leases | i. Leases The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration. For leases in which the Company is the lessee, the Company recognizes on the commencement date of the lease a right-of-use asset and a lease liability, excluding leases whose term is up to 12 months and leases for which the underlying asset is of low value. For these excluded leases, the Company has elected to recognize the lease payments as an expense in profit or loss on a straight-line basis over the lease term. In measuring the lease liability, the Company has elected to apply the practical expedient in the Standard and does not separate the lease components from the non-lease components (such as management and maintenance services, etc.) included in a single contract. On the commencement date, the lease liability includes all unpaid lease payments discounted at the interest rate implicit in the lease, if that rate can be readily determined, or otherwise using the Company’s incremental borrowing rate. After the commencement date, the Company measures the lease liability using the effective interest rate method. On the commencement date, the right-of-use asset is recognized in an amount equal to the lease liability plus lease payments already made on or before the commencement date and initial direct costs incurred. The right-of-use asset is measured applying the cost model and depreciated over the shorter of its useful life and the lease term. Following are the amortization periods of the right-of-use assets by class of underlying asset: Schedule of amortization of right-of-use assets Years Lease facilities 2 to 3 Motor vehicles 3 The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36. For leases in which the Company is the lessor, refer to revenue recognition in Note 2f. |
System components | j. System components System components are measured at the lower of cost and net realizable value. The cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, which is primarily leasing to customers, less estimated costs of completion and estimated costs necessary to make a sale or a lease. The Company periodically evaluates the intended use of the systems components, their condition and age and records provisions for impairment accordingly. |
Leased systems, net | k. Leased systems, net The cost of self-constructed systems (leased systems) includes the cost of materials, direct labor and share-based payment, as well as any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, less accumulated depreciation and impairment losses. The impairment and disposals of leased systems and system components recognized in cost of revenues was $ 1,295 1,061 1,191 |
Other property and equipment, net | l. Other property and equipment, net Other property and equipment are measured at cost, including directly attributable costs, less accumulated depreciation, accumulated impairment losses and any related investment grants and excluding day-to-day servicing expenses. Cost includes spare parts and auxiliary equipment that are used in connection with plant and equipment. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows: Schedule of useful life of the assets at annual rates % Leased systems 15 Laboratory equipment 15 Computers 33 Office furniture and equipment 6 - 15 Leasehold improvements (*) Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Group and intended to be exercised) and the useful life of the improvement. The useful life, depreciation method and residual value of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimate. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale and the date that the asset is derecognized. |
Impairment of non-financial assets | m. Impairment of non-financial assets The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss. An impairment loss of an asset is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, shall not be increased above the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and its recoverable amount. The reversal of impairment loss of an asset presented at cost is recognized in profit or loss. |
Financial instruments | n. Financial instruments The Company has short-term financial assets, such as trade receivables, in respect of which the Company applies the simplified approach in IFRS 9 and measures the loss allowance in an amount equal to the lifetime expected credit losses. |
Fair value measurement | o. Fair value measurement Carrying amount of cash and cash equivalents, short-term deposits, trade receivables, other current assets, trade payables and other account payables approximate their fair value due to the short-term maturities of the instruments. |
Provisions | p. Provisions A provision in accordance with IAS 37 is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. |
Employee benefit liabilities | q. Employee benefit liabilities 1. Short-term employee benefits: Short-term employee benefits are benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services. These benefits include salaries, paid annual and sick leave, recreation and social security contributions and are recognized as expenses as the services are rendered. A liability in respect of a cash bonus or a profit-sharing plan is recognized when the Company has a legal or constructive obligation to make such payment as a result of past service rendered by an employee and a reliable estimate of the amount can be made. 2. Post-employment benefits: The Group has defined contribution plans pursuant to Section 14 of the Severance Pay Law (“Section 14”) under which the Group pays fixed contributions and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient amounts to pay all employee benefits relating to employee service in the current and prior periods. The Israeli Severance Pay Law, 1963 (“Severance Pay Law”), specifies that employees are entitled to severance payment following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. The Company’s liability for severance pay is covered by the provisions of. Under Section 14, employees are entitled to monthly deposits, at a rate of 8.33 |
Share-based payment transactions | r. Share-based payment transactions The Company’s employees and other service providers are granted remuneration in the form of equity-settled share-based payment (options and restricted shares). The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value of an option granted is determined using the Binomial Lattice option-pricing model (“Binomial model”). The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option. The fair value of the restricted shares granted is determined using the closing price of the Company's share, as quoted in the Tel-Aviv Stock Exchange (TASE) on the day of the grant. The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in equity during the period which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employees become entitled to the award (“the vesting period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting date includes the Group’s best estimate of the number of equity instruments that will ultimately vest. No expense is recognized for awards that do not ultimately vest. If the Company modifies the conditions on which equity-instruments were granted, an additional expense is recognized for any modification that increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee/other service provider at the modification date. |
Research and development expenditures | s. Research and development expenditures Research expenses are recognized in profit or loss when incurred. |
Loss per share | t. Loss per share Loss per share is calculated by dividing the net loss attributable to equity holders of the Company by the weighted number of ordinary shares outstanding during the period. The Company does not have dilutive instruments since it generates loss in each of the three years in the period ended December 31, 2021. |
New standards in the period prior to their adoption | u. New standards in the period prior to their adoption 1. Amendment to IAS 16, "Property, Plant and Equipment": In May 2020, the IASB issued an amendment to IAS 16, "Property, Plant and Equipment". The amendment prohibits a company from deducting from the cost of property, plant and equipment ("PP&E") consideration received from the sales of items produced while the company is preparing the asset for its intended use. Instead, the company should recognize such consideration and related costs in profit or loss. The amendment is effective for annual reporting periods beginning on or after January 1, 2022, with earlier application permitted. The amendment is to be applied retrospectively, but only to items of PP&E made available for use on or after the beginning of the earliest period presented in the financial statements in which the company first applies the amendment. The company should recognize the cumulative effect of initially applying the Amendment as an adjustment to the opening balance of retained earnings at the beginning of the earliest period presented. The Company estimates that the application of the amendment is not expected to have a material impact on the financial statements. 2. Amendment to IAS 37, "Provisions, Contingent Liabilities and Contingent Assets": In May 2020, the IASB issued an amendment to IAS 37, regarding which costs a company should include when assessing whether a contract is onerous. According to the amendment, costs of fulfilling a contract include both the incremental costs (for example, raw materials and direct labor) and an allocation of other costs that relate directly to fulfilling a contract (for example, depreciation of an item of property, plant and equipment used in fulfilling the contract). The amendment is effective for annual periods beginning on or after January 1, 2022 and applies to contracts for which all obligations in respect thereof have not yet been fulfilled as of January 1, 2022. Early application is permitted. The Company estimates that the application of the amendment is not expected to have a material impact on the financial statements. 3. Amendment to IAS 8, "Accounting Policies, Changes to Accounting Estimates and Errors": In February 2021, the IASB issued an amendment to IAS 8, "Accounting Policies, Changes to Accounting Estimates and Errors", in which it introduces a new definition of "accounting estimates". Accounting estimates are defined as "monetary amounts in financial statements that are subject to measurement uncertainty". The amendment clarifies the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. The amendment is to be applied prospectively for annual reporting periods beginning on or after January 1, 2023 and is applicable to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. Early application is permitted. The Company is evaluating the effects of the amendment on its financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Schedule of amortization of right-of-use assets | Schedule of amortization of right-of-use assets Years Lease facilities 2 to 3 Motor vehicles 3 |
Schedule of useful life of the assets at annual rates | Schedule of useful life of the assets at annual rates % Leased systems 15 Laboratory equipment 15 Computers 33 Office furniture and equipment 6 - 15 Leasehold improvements (*) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | Schedule of cash and cash equivalents December 31, 2021 2020 Cash for immediate withdrawal $ 15,471 $ 15,457 Cash equivalents—short-term deposits 1,450 1,504 Total $ 16,921 $ 16,961 |
SHORT-TERM DEPOSITS (Tables)
SHORT-TERM DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Deposits | |
Schedule of short-term deposits at banks | Schedule of short-term deposits at banks December 31, 2021 2020 Bank deposits $ 40,428 $ 221 |
TRADE RECEIVABLES, NET (Tables)
TRADE RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables [abstract] | |
Schedule of trade receivables, net | Schedule of trade receivables, net December 31, 2021 2020 Open accounts (1) $ 7,588 $ 6,906 Credit cards — 108 Less—allowance for doubtful accounts (1,256 ) (1,432 ) Trade receivables, net $ 6,332 $ 5,582 (1) Trade receivables generally have 90-day credit terms. Certain customers payments are made through monthly credit card transactions. |
Schedule of allowance for doubtful account | Schedule of allowance for doubtful account U.S. dollars in Balance as of January 1, 2020 $ 930 Provision for the year 1,058 Derecognition of bad debts (556 ) Balance as of December 31, 2020 1,432 Provision for the year 323 Derecognition of bad debts (499 ) Balance as of December 31, 2021 $ 1,256 |
Schedule of credit losses exposure | Schedule of credit losses exposure December 31, 2021: U.S. dollars in thousands Not past < 30 30 - 60 61 - 90 91 - 120 >120 Total U.S. dollars in thousands Gross carrying amount $ 2,715 $ 910 $ 847 $ 693 $ 435 $ 1,988 $ 7,588 Allowance for doubtful accounts $ 7 $ 64 $ 59 $ 97 $ 65 $ 964 $ 1,256 Trade receivables, net 2,708 846 788 596 370 1,024 $ 6,332 December 31, 2020: U.S. dollars in thousands Not past < 30 30 - 60 61 - 90 91 - 120 >120 Total U.S. dollars in thousands Gross carrying amount $ 1,757 $ 978 $ 673 $ 670 $ 418 $ 2,518 $ 7,014 Allowance for doubtful accounts $ 4 $ 5 $ 7 $ 33 $ 159 $ 1,224 $ 1,432 Trade receivables, net 1,753 973 666 637 259 1,294 $ 5,582 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Current Assets | |
Schedule of other current assets | Schedule of other current assets December 31, 2021 2020 Government authorities $ 388 $ 212 Accrued income-IIA — 208 Consumables 200 442 Prepaid expenses and other 1,178 672 Other current assets $ 1,766 $ 1,534 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
Schedule of property and equipment, net | Schedule of property and equipment, net System Leased systems Laboratory Right of Office Leasehold Total Cost: Balance at January 1, 2021 $ 3,642 $ 8,620 $ 845 $ 1,335 $ 96 $ 52 $ 14,590 Additions 5,448 — 325 587 39 17 6,416 Transfer to Leased systems (985 ) 985 — — — — — Reductions (3,642 ) (***) (2,142 ) (**) — (287 ) — — (6,071 ) Balance at December 31, 2021 4,463 7,463 1,170 1,635 135 69 14,935 Accumulated depreciation: Balance at January 1, 2021 $ — $ 3,422 $ 775 $ 735 $ 56 $ 52 $ 5,040 Additions — 1,126 82 470 7 1 1,686 Reductions — (898 ) — (224 ) — — (1,122 ) Balance at December 31, 2021 — 3,650 857 981 63 53 5,604 Depreciated cost at December 31, 2021 $ 4,463 $ 3,813 $ 313 $ 654 $ 72 $ 16 $ 9,331 December 31, 2020: System Leased systems Laboratory Right of Office Leasehold Total Cost Balance at January 1, 2020 $ 3,117 $ 8,151 $ 831 $ 1,414 $ 90 $ 52 $ 13,655 Additions 3,989 14 48 6 4,057 Transfer to Leased systems (1,580 ) 1,580 Reductions (1,884 ) (***) (1,111 ) (**) (127 ) (3,122) Accumulated depreciation: Balance at December 31, 2020 3,642 8,620 845 1,335 96 52 14,590 Balance at January 1, 2020 2,660 694 460 50 52 3,916 Additions 1,180 81 351 6 1,618 Reductions (418 ) (76 ) (494) Balance at December 31, 2020 3,422 775 735 56 52 5,040 Depreciated cost at December 31, 2020 $ 3,642 $ 5,198 $ 70 $ 600 $ 40 $ (*) $ 9,550 (*) Represents an amount lower than $ 1 (**) Derived mainly from returned systems as well as sale of leased systems. (***) Mainly includes impairment and disposals charge of $1,295 and $1,161 and system components sold in the amount of $1,789 and $723 for the years ended December 31, 2021 and 2020, respectively. |
OTHER ACCOUNTS PAYABLE (Tables)
OTHER ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Accounts Payable | |
Schedule of other accounts payable | Schedule of other accounts payable December 31, 2021 2020 Employee and payroll accruals $ 1,139 $ 972 Accrued expenses 2,899 2,266 Tax payable 18 — Liabilities to related parties (1) 236 102 Lease liabilities 500 429 Other accounts payable $ 4,792 $ 3,769 (1) A current non-interest bearing account. |
NON-CURRENT LIABILITIES (Tables
NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Non-current Liabilities | |
Schedule of non-current liabilities | Schedule of non-current liabilities December 31, 2021 2020 Deferred revenues (a) 3,157 1,772 Lease liabilities (b) 254 243 Other liabilities 8 38 Total non-current liabilities $ 3,419 $ 2,053 a. Including an amount of $1,479 and $1,405 relating to deferred distribution fees received as of the years ended December 31 2021 and 2020, respectively. For more information see note 14c. |
Schedule of lease liabilities | Schedule of lease liabilities U.S. dollars in Maturity analysis: Less than one year 537 One to five years 258 Total lease commitments 795 Impact of discounting remaining lease payments (41 ) Lease liabilities as of December 31, 2021: 754 Current 500 Non-current 254 Total $ 754 U.S. dollars in Maturity analysis: Less than one year 463 One to five years 312 Total lease commitments 775 Impact of discounting remaining lease payments (103 ) Total lease liabilities as of December 31, 2020 672 Current 429 Non-current 243 Total $ 672 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of sensitivity tests relating to changes in foreign currency | Schedule of sensitivity tests relating to changes in foreign currency December 31, 2021 2020 Sensitivity test to changes in the NIS exchange rate: Gain (loss) from the change: Increase of 5% in exchange rate $ 130 $ (50 ) Decrease of 5% in exchange rate $ (130 ) $ 50 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Schedule of ordinary shares | Schedule of ordinary shares December 31, 2021 December 31, 2020 Authorized Issued and Authorized Issued and Number of shares Ordinary shares of NIS 0.04 par value each 120,000,000 32,911,134 35,000,000 22,250,534 |
Schedule of issued and outstanding share capital | Schedule of issued and outstanding share capital Number of NIS par Balance as of January 1, 2021 22,250,534 233,167 Issuance of shares - public offering 10,630,600 128,622 Vesting of restricted shares 30,000 1,200 Balance as of December 31, 2021 32,911,134 362,989 |
SHARE-BASED PAYMENT (Tables)
SHARE-BASED PAYMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment | |
Schedule of expense recognized in the financial statements for services | Schedule of expense recognized in the financial statements for services Year ended 2021 2020 2019 Equity-settled share-based payment plans to employees, directors and consultants $ 1,893 $ 799 $ 1,263 |
Schedule of share-based payment | Schedule of share-based payment Range of exercise prices Options outstanding 31, Weighted Average remaining contractual Term Weighted Average exercise price ($) Options exercisable 4.67 – 4.91 1,482,383 4.92 4.71 1,053,417 3.41 70,000 9.00 3.41 17,500 *) Options and restricted shares. **) As of grant date. |
Schedule of fair value of options granted | Schedule of fair value of options granted Year ended December 31, 2021 2020 2019 Dividend yield (%) — — — Expected volatility (%) 50.49 – 64.44 48.00 – 76.78 40.06 – 48.09 Risk-free interest rate (%) 0.06 – 1.59 0.14 – 0.62 1.61 – 1.73 Expected exercise factor 2.8 2.8 2.8 |
Schedule of share-based payment movement during the year | Schedule of share-based payment movement during the year Year ended December 31, 2021 2020 Number of Weighted Number of Weighted $ $ Outstanding at January 1, 1,522,975 $ 7.5 2,213,812 $ 7.1 Granted 135,000 4.7 285,008 5.4 Exercised — — (246,642 ) 5.8 Expired (52,625 ) 5.9 (535,667 ) 7.4 Forfeited (52,967 ) 6.8 (193,916 ) 6.7 Outstanding at December 31, 1,552,383 $ 4.6 1,522,975 $ 7.5 Exercisable at December 31, 1,070,917 $ 4.7 839,418 $ 9.5 (*) The exercise price of all options denominated in NIS and was translated to USD in the table above using the exchange rate as of December 31, 2021 and 2020, respectively. |
Schedule of movement of restricted shares during the year | Schedule of movement of restricted shares during the year 2021 2020 Number of Number of Outstanding at January 1, 45,000 $ — Granted 549,730 60,000 Vested (15,000 ) (15,000 ) Forfeited (20,200 ) — Outstanding at December 31, 559,530 $ 45,000 |
ADDITIONAL INFORMATION TO THE_2
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Additional Information To Statements Of Comprehensive Loss | |
Schedule of additional information on revenues | Schedule of additional information on revenues Year ended 2021 2020 2019 Revenues from lease $ 13,449 $ 13,628 $ 13,218 Revenues from sale 16,208 8,429 9,883 Revenue $ 29,657 $ 22,057 $ 23,101 |
Schedule of geographic information | Schedule of geographic information Year ended December 31, 2021 % 2020 % 2019 % U.S. $ 26,094 88 $ 19,330 88 $ 20,636 89 Europe 2,031 7 1,847 8 1,353 6 Israel 149 1 150 1 267 1 Other 1,383 4 730 3 845 4 $ 29,657 100 $ 22,057 100 $ 23,101 100 |
Schedule of cost of revenues | Schedule of cost of revenues Year ended 2021 2020 2019 Cost of revenues - lease $ 3,090 $ 3,201 $ 2,656 Cost of revenues - sales 3,509 1,857 2,473 Cost of revenues $ 6,599 $ 5,058 $ 5,129 |
Schedule of research and development expenses, net | Schedule of research and development expenses, net Year ended 2021 2020 2019 Salaries and related benefits $ 3,580 $ 3,289 $ 3,338 Subcontractors 961 1,530 2,620 Laboratory materials 665 275 687 Patents 204 288 334 Share-based payment 411 182 399 Travel 28 2 112 Depreciation 107 87 39 Other 538 383 604 Less—Government grants (101 ) (213 ) (257 ) Research and development expenses, net $ 6,393 $ 5,823 $ 7,876 |
Schedule of selling and marketing expenses | Schedule of selling and marketing expenses Year ended 2021 2020 2019 Salaries and related benefits $ 8,887 $ 6,458 $ 6,419 Agent commissions 392 335 221 Marketing 4,782 3,627 5,239 Travel 1,121 611 1,176 Share-based payment 698 252 214 Selling and marketing expenses $ 15,880 $ 11,283 $ 13,269 |
Schedule of general and administrative expenses | Schedule of general and administrative expenses Year ended 2021 2020 2019 Salaries and related benefits $ 2,283 $ 1,339 $ 1,774 Professional fees and office expenses 2,031 1,609 1,770 Depreciation 407 351 81 Travel 10 17 222 Allowance for doubtful accounts 323 1,058 835 Share-based payment 730 348 621 $ 5,784 $ 4,722 $ 5,303 |
Schedule of finance income and expense | Schedule of finance income and expense Year ended 2021 2020 2019 Finance income: Interest-income revaluation of bank deposits $ 225 $ 61 $ 175 Revaluation of warrants 30 40 62 Exchange rate differences — 448 — Finance income $ 255 $ 549 $ 237 Finance expense: Liability in respect of research and development grants $ 1,171 $ 762 $ 969 Interest expense and amortization of deferred costs- loan from bank — — 283 Bank commissions 81 40 108 Exchange rate differences 363 — 192 Interest expense of lease liability 60 66 115 Finance expense $ 1,675 $ 868 $ 1,667 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Schedule of net loss per share | Schedule of net loss per share Year ended December 31, 2021 2020 2019 Weighted Loss Weighted Loss Weighted Loss Used in the computation of basic and diluted net loss 31,154,258 $ 6,462 22,453,025 $ 5,385 20,506,202 $ 10,328 *) Computation of diluted loss per share did not include potential ordinary shares that would result from conversion of outstanding options and warrants, since their conversion has anti-dilutive effect. |
BALANCES AND TRANSACTIONS WIT_2
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Balances And Transactions With Related Parties | |
Schedule of balances with interested and related parties | Schedule of balances with interested and related parties Key Other Other accounts payable $ 192 $ 45 As of December 31, 2020 Key Other Other accounts payable $ 64 $ 38 |
Schedule of benefits to interested and related parties | Schedule of benefits to interested and related parties Year ended 2021 2020 2019 Salary to those employed by the Company or on its behalf $ 885 $ 769 $ 945 Directors’ fees to those not employed by the Company or on its behalf $ 148 $ 60 $ 90 Number of individuals to whom the salary and benefits relate: Related and interested parties employed by the Company or on its behalf 3 2 3 Directors not employed by the Company 5 6 8 Benefits to interested and related parties 8 8 11 |
Schedule of key management personnel | Schedule of key management personnel Year ended 2021 2020 2019 Short-term benefits $ — $ — $ 3 Share-based payment to those employed by the Company or on its behalf $ 445 $ 182 $ 190 Share-based payment to those not employed by the Company or on its behalf $ 90 $ 150 $ 147 |
Schedule of transactions with interested and related parties | Schedule of transactions with interested and related parties Key Other Research and development expenses $ 112 $ 82 General and administrative expenses 1,137 238 $ 1,249 $ 320 Year ended December 31, 2020 Key Other Research and development expenses $ 236 $ — General and administrative expenses 619 201 Selling and marketing 150 — $ 1,005 $ 201 Year ended December 31, 2019 Key Other Research and development expenses $ 113 $ 81 General and administrative expenses 943 238 $ 1,056 $ 319 *) Some of the key management personnel are interested parties by virtue of holdings. |
GENERAL (Details Narrative)
GENERAL (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
General | |
Negative cash flows from operating activities | $ 884 |
Operating loss | $ 4,999 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Lease facilities [Member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Amortization period right-of-use assets | 2 years |
Lease facilities [Member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Amortization period right-of-use assets | 3 years |
Motor vehicles [member] | |
IfrsStatementLineItems [Line Items] | |
Amortization period right-of-use assets | 3 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2021 | |
Leased systems [Member] | |
IfrsStatementLineItems [Line Items] | |
Annual depreciation rates | 15.00% |
Laboratory equipment [Member] | |
IfrsStatementLineItems [Line Items] | |
Annual depreciation rates | 15.00% |
Computers [Member] | |
IfrsStatementLineItems [Line Items] | |
Annual depreciation rates | 33.00% |
Office equipment [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Annual depreciation rates | 6.00% |
Office equipment [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Annual depreciation rates | 15.00% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Cost of revenues | $ 6,599 | $ 5,058 | $ 5,129 |
Percentage of monthly deposit at a rate | 8.33% | ||
Leased systems [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of revenues | $ 1,295 | $ 1,061 | $ 1,191 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents [abstract] | ||
Cash for immediate withdrawal | $ 15,471 | $ 15,457 |
Cash equivalents—short-term deposits | 1,450 | 1,504 |
Total | $ 16,921 | $ 16,961 |
SHORT-TERM DEPOSITS (Details)
SHORT-TERM DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Deposits | ||
Bank deposits | $ 40,428 | $ 221 |
SHORT-TERM DEPOSITS (Details Na
SHORT-TERM DEPOSITS (Details Narrative) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Deposits | ||
Annual interest | 0.76% | 0.76% |
TRADE RECEIVABLES, NET (Details
TRADE RECEIVABLES, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Trade and other receivables [abstract] | |||
Open accounts (1) | [1] | $ 7,588 | $ 6,906 |
Credit cards | 108 | ||
Less—allowance for doubtful accounts | (1,256) | (1,432) | |
Trade receivables, net | $ 6,332 | $ 5,582 | |
[1] | Trade receivables generally have 90-day credit terms. Certain customers payments are made through monthly credit card transactions. |
TRADE RECEIVABLES, NET (Detai_2
TRADE RECEIVABLES, NET (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Trade and other receivables [abstract] | ||
Beginning balance | $ 1,432 | $ 930 |
Provision for the year | 323 | 1,058 |
Derecognition of bad debts | (499) | (556) |
Ending balance | $ 1,256 | $ 1,432 |
TRADE RECEIVABLES, NET (Detai_3
TRADE RECEIVABLES, NET (Details 2) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Gross carrying amount | $ 7,588 | $ 7,014 | |
Allowance for doubtful accounts | 1,256 | 1,432 | $ 930 |
Trade receivables, net | 6,332 | 5,582 | |
Current [member] | |||
IfrsStatementLineItems [Line Items] | |||
Gross carrying amount | 910 | 978 | |
Allowance for doubtful accounts | 64 | 5 | |
Trade receivables, net | 846 | 973 | |
Later than one month and not later than two months [member] | |||
IfrsStatementLineItems [Line Items] | |||
Gross carrying amount | 847 | 673 | |
Allowance for doubtful accounts | 59 | 7 | |
Trade receivables, net | 788 | 666 | |
Later than two months and not later than three months [member] | |||
IfrsStatementLineItems [Line Items] | |||
Gross carrying amount | 693 | 670 | |
Allowance for doubtful accounts | 97 | 33 | |
Trade receivables, net | 596 | 637 | |
Later than three months [member] | |||
IfrsStatementLineItems [Line Items] | |||
Gross carrying amount | 435 | 418 | |
Allowance for doubtful accounts | 65 | 159 | |
Trade receivables, net | 370 | 259 | |
Later than four months [member] | |||
IfrsStatementLineItems [Line Items] | |||
Gross carrying amount | 1,988 | 2,518 | |
Allowance for doubtful accounts | 964 | 1,224 | |
Trade receivables, net | 1,024 | 1,294 | |
Financial assets past due but not impaired [member] | |||
IfrsStatementLineItems [Line Items] | |||
Gross carrying amount | 2,715 | 1,757 | |
Allowance for doubtful accounts | 7 | 4 | |
Trade receivables, net | $ 2,708 | $ 1,753 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Current Assets | ||
Government authorities | $ 388 | $ 212 |
Accrued income-IIA | 208 | |
Consumables | 200 | 442 |
Prepaid expenses and other | 1,178 | 672 |
Other current assets | $ 1,766 | $ 1,534 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | ||
IfrsStatementLineItems [Line Items] | ||
Depreciated cost at ending balance | $ 9,331 | |
System Components [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Depreciated cost at ending balance | 4,463 | |
Leased systems [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Depreciated cost at ending balance | 3,813 | |
Laboratory equipment [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Depreciated cost at ending balance | 313 | |
Right-of-use assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Depreciated cost at ending balance | 654 | |
Office equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Depreciated cost at ending balance | 72 | |
Leasehold improvements [member] | ||
IfrsStatementLineItems [Line Items] | ||
Depreciated cost at ending balance | 16 | |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 14,590 | |
Additions | 6,416 | |
Transfer to Leased systems | ||
Reductions | (6,071) | |
Ending balance | 14,935 | |
Gross carrying amount [member] | System Components [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 3,642 | |
Additions | 5,448 | |
Transfer to Leased systems | (985) | |
Reductions | (3,642) | [1] |
Ending balance | 4,463 | |
Gross carrying amount [member] | Leased systems [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 8,620 | |
Additions | ||
Transfer to Leased systems | 985 | |
Reductions | (2,142) | [2] |
Ending balance | 7,463 | |
Gross carrying amount [member] | Laboratory equipment [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 845 | |
Additions | 325 | |
Transfer to Leased systems | ||
Reductions | ||
Ending balance | 1,170 | |
Gross carrying amount [member] | Right-of-use assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 1,335 | |
Additions | 587 | |
Transfer to Leased systems | ||
Reductions | (287) | |
Ending balance | 1,635 | |
Gross carrying amount [member] | Office equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 96 | |
Additions | 39 | |
Transfer to Leased systems | ||
Reductions | ||
Ending balance | 135 | |
Gross carrying amount [member] | Leasehold improvements [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 52 | |
Additions | 17 | |
Transfer to Leased systems | ||
Reductions | ||
Ending balance | 69 | |
Accumulated depreciation [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 5,040 | |
Additions | 1,686 | |
Reductions | (1,122) | |
Ending balance | 5,604 | |
Accumulated depreciation [Member] | System Components [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | ||
Additions | ||
Reductions | ||
Ending balance | ||
Accumulated depreciation [Member] | Leased systems [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 3,422 | |
Additions | 1,126 | |
Reductions | (898) | |
Ending balance | 3,650 | |
Accumulated depreciation [Member] | Laboratory equipment [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 775 | |
Additions | 82 | |
Reductions | ||
Ending balance | 857 | |
Accumulated depreciation [Member] | Right-of-use assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 735 | |
Additions | 470 | |
Reductions | (224) | |
Ending balance | 981 | |
Accumulated depreciation [Member] | Office equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 56 | |
Additions | 7 | |
Reductions | ||
Ending balance | 63 | |
Accumulated depreciation [Member] | Leasehold improvements [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 52 | |
Additions | 1 | |
Reductions | ||
Ending balance | $ 53 | |
[1] | Mainly includes impairment and disposals charge of $1,295 and $1,161 and system components sold in the amount of $1,789 and $723 for the years ended December 31, 2021 and 2020, respectively. | |
[2] | Derived mainly from returned systems as well as sale of leased systems. |
OTHER ACCOUNTS PAYABLE (Details
OTHER ACCOUNTS PAYABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Accounts Payable | |||
Employee and payroll accruals | $ 1,139 | $ 972 | |
Accrued expenses | 2,899 | 2,266 | |
Tax payable | 18 | ||
Liabilities to related parties (1) | [1] | 236 | 102 |
Lease liabilities | 500 | 429 | |
Other accounts payable | $ 4,792 | $ 3,769 | |
[1] | A current non-interest bearing account. |
NON-CURRENT LIABILITIES (Detail
NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-current Liabilities | |||
Deferred revenues (a) | [1] | $ 3,157 | $ 1,772 |
Lease liabilities (b) | 254 | 243 | |
Other liabilities | 8 | 38 | |
Total non-current liabilities | $ 3,419 | $ 2,053 | |
[1] | Including an amount of $1,479 and $1,405 relating to deferred distribution fees received as of the years ended December 31 2021 and 2020, respectively. For more information see note 14c. |
NON-CURRENT LIABILITIES (Deta_2
NON-CURRENT LIABILITIES (Details 1) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Maturity analysis: | ||
Less than one year | $ 537 | $ 463 |
One to five years | 258 | 312 |
Total lease commitments | 795 | 775 |
Impact of discounting remaining lease payments | (41) | (103) |
Total lease liabilities as of December 31, 2020 | 754 | 672 |
Current | 500 | 429 |
Non-current | 254 | 243 |
Total | $ 754 | $ 672 |
FINANCIAL INSTRUMENTS (Details
FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Gain (loss) from the change: | ||
Increase of 5% in exchange rate | $ 130 | $ (50) |
Decrease of 5% in exchange rate | $ (130) | $ 50 |
FINANCIAL INSTRUMENTS (Detail_2
FINANCIAL INSTRUMENTS (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial liabilities | $ 721 |
Excess of financial assets over financial liabilities | $ 2,601 |
Financial instruments, description | Company has excess of financial assets over financial liabilities in Euro and Yen in relation to US dollar of $ 1,694 and $391, respectively. An increase or decrease of 5% of the US dollar relative to the Euro or Yen would not have a significant effect on the Company. |
EMPLOYEE BENEFITS AND LIABILI_2
EMPLOYEE BENEFITS AND LIABILITIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits And Liabilities | ||
Expense in defined contribution plans | $ 329 | $ 258 |
TAXES ON INCOME (Details Narrat
TAXES ON INCOME (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reserve Quantities [Line Items] | |||
Carryforward losses for tax purposes | $ 70,000 | ||
Deferred tax assets | 458 | ||
Statutory corporate tax benefits | $ 1,476 | $ 1,184 | |
Israel [Member] | |||
Reserve Quantities [Line Items] | |||
Corporate federal income tax rate | 23.00% | 23.00% | 23.00% |
Tax expenses | $ 43 | $ 237 |
CONTINGENT LIABILITIES, COMMI_2
CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2019 | Apr. 30, 2014 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of contingent liabilities [abstract] | ||||
Current provision for royalties | $ 6,899 | $ 6,231 | ||
Maximum royalties payable | 12,407 | |||
Royalties paid | $ 3,403 | |||
Description of distribution fees payment | In consideration for the above, the distributor is obligated to pay the Company distribution fees of 190 million Yen (approximately $1.8 million), whereby 100 million Yen paid in September 2013 and 90 million Yen paid in 2019. | |||
Revenue target | 10.00% | |||
Exclusivity fee | $ 1,000 | |||
Refundable fees | $ 600 | |||
Royalties rates | 8.00% | |||
Fixed rate | 5.00% |
EQUITY (Details)
EQUITY (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Equity | ||
Number of shares, Authorized | 120,000,000 | 35,000,000 |
Number of shares, Issued and outstanding | 32,911,134 | 22,250,534 |
EQUITY (Details 1)
EQUITY (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Equity | |
Balance, shares | shares | 22,250,534 |
Balance | $ | $ 233,167 |
Issuance of shares - public offering, shares | shares | 10,630,600 |
Issuance of shares - public offering, Value | $ | $ 128,622 |
Vesting of restricted shares, shares | shares | 30,000 |
Vesting of restricted shares, Value | $ | $ 1,200 |
Balance, shares | shares | 32,911,134 |
Balance | $ | $ 362,989 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Description of initial publlic offering | Company closed an underwritten public offering of 5,315,300 American Depositary Shares (“ADSs”) resulting in $45.2 million in gross proceeds to the Company, before deducting underwriting discounts and commissions and offering expenses. Each ADS represents two ordinary shares. |
SHARE-BASED PAYMENT (Details)
SHARE-BASED PAYMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment | |||
Equity-settled share-based payment plans to employees, directors and consultants | $ 1,893 | $ 799 | $ 1,263 |
SHARE-BASED PAYMENT (Details 1)
SHARE-BASED PAYMENT (Details 1) - Share-based payment arrangements [member] | 12 Months Ended | |
Dec. 31, 2021$ / sharesshares | ||
Range 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Options outstanding | 1,482,383 | [1] |
Weighted Average remaining contractual Term | 4 years 11 months 1 day | |
Exercise Price | $ / shares | $ 4.71 | |
Exercisable | 1,053,417 | |
Range 2 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Options outstanding | 70,000 | [1] |
Weighted Average remaining contractual Term | 9 years | |
Exercise Price | $ / shares | $ 3.41 | |
Exercisable | 17,500 | |
[1] | Options and restricted shares. |
SHARE-BASED PAYMENT (Details 2)
SHARE-BASED PAYMENT (Details 2) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected exercise factor | $ 2.8 | $ 2.8 | $ 2.8 |
Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Expected volatility | 50.49% | 48.00% | 40.06% |
Risk-free interest rate | 0.06% | 0.14% | 1.61% |
Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Expected volatility | 64.44% | 76.78% | 48.09% |
Risk-free interest rate | 1.59% | 0.62% | 1.73% |
SHARE-BASED PAYMENT (Details 3)
SHARE-BASED PAYMENT (Details 3) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment | ||
Number of options, Outstanding at beginning of year | 1,522,975 | 2,213,812 |
Weighted average of exercise price, Outstanding at the beginning of year | $ 7.5 | $ 7.1 |
Number of options, Granted | 135,000 | 285,008 |
Weighted average of exercise price, Granted | $ 4.7 | $ 5.4 |
Number of options, Exercised | (246,642) | |
Weighted average of exercise price, Exercised | $ 5.8 | |
Number of options, Expired | (52,625) | (535,667) |
Weighted average of exercise price, Expired | $ 5.9 | $ 7.4 |
Number of options, Forfeited | (52,967) | (193,916) |
Weighted average of exercise price, Forfeited | $ 6.8 | $ 6.7 |
Number of options, Outstanding at year end | 1,552,383 | 1,522,975 |
Weighted average of exercise price, Outstanding at year end | $ 4.6 | $ 7.5 |
Number of options, Exercisable at year end | 1,070,917 | 839,418 |
Weighted average of exercise price, Exercisable at year end | $ 4.7 | $ 9.5 |
SHARE-BASED PAYMENT (Details 4)
SHARE-BASED PAYMENT (Details 4) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment | ||
Number of Restricted shares, Outstanding at beginning of year | 45,000 | |
Number of Restricted shares, Granted | 549,730 | 60,000 |
Number of Restricted shares, Vested | (15,000) | (15,000) |
Number of Restricted shares, Forfeited | (20,200) | |
Number of Restricted shares, Outstanding at year end | 559,530 | 45,000 |
SHARE-BASED PAYMENT (Details Na
SHARE-BASED PAYMENT (Details Narrative) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Weighted average remaining contractual life | 5 years | 6 years |
Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise Price | $ 10.61 | |
Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise Price | $ 15.26 |
ADDITIONAL INFORMATION TO THE_3
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Additional Information To Statements Of Comprehensive Loss | |||
Revenues from lease | $ 13,449 | $ 13,628 | $ 13,218 |
Revenues from sale | 16,208 | 8,429 | 9,883 |
Revenue | $ 29,657 | $ 22,057 | $ 23,101 |
ADDITIONAL INFORMATION TO THE_4
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reserve Quantities [Line Items] | |||
Revenues | $ 29,657 | $ 22,057 | $ 23,101 |
Percentage of revenues | 100.00% | 100.00% | 100.00% |
USA [Member] | |||
Reserve Quantities [Line Items] | |||
Revenues | $ 26,094 | $ 19,330 | $ 20,636 |
Percentage of revenues | 88.00% | 88.00% | 89.00% |
Europes [Member] | |||
Reserve Quantities [Line Items] | |||
Revenues | $ 2,031 | $ 1,847 | $ 1,353 |
Percentage of revenues | 7.00% | 8.00% | 6.00% |
Israel [Member] | |||
Reserve Quantities [Line Items] | |||
Revenues | $ 149 | $ 150 | $ 267 |
Percentage of revenues | 1.00% | 1.00% | 1.00% |
Others [Member] | |||
Reserve Quantities [Line Items] | |||
Revenues | $ 1,383 | $ 730 | $ 845 |
Percentage of revenues | 4.00% | 3.00% | 4.00% |
ADDITIONAL INFORMATION TO THE_5
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Additional Information To Statements Of Comprehensive Loss | |||
Cost of revenues - lease | $ 3,090 | $ 3,201 | $ 2,656 |
Cost of revenues - sales | 3,509 | 1,857 | 2,473 |
Cost of revenues | $ 6,599 | $ 5,058 | $ 5,129 |
ADDITIONAL INFORMATION TO THE_6
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Additional Information To Statements Of Comprehensive Loss | |||
Salaries and related benefits | $ 3,580 | $ 3,289 | $ 3,338 |
Subcontractors | 961 | 1,530 | 2,620 |
Laboratory materials | 665 | 275 | 687 |
Patents | 204 | 288 | 334 |
Share-based payment | 411 | 182 | 399 |
Travel | 28 | 2 | 112 |
Depreciation | 107 | 87 | 39 |
Other | 538 | 383 | 604 |
Less—Government grants | (101) | (213) | (257) |
Research and development expenses, net | $ 6,393 | $ 5,823 | $ 7,876 |
ADDITIONAL INFORMATION TO THE_7
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Additional Information To Statements Of Comprehensive Loss | |||
Salaries and related benefits | $ 8,887 | $ 6,458 | $ 6,419 |
Agent commissions | 392 | 335 | 221 |
Marketing | 4,782 | 3,627 | 5,239 |
Travel | 1,121 | 611 | 1,176 |
Share-based payment | 698 | 252 | 214 |
Selling and marketing expenses | $ 15,880 | $ 11,283 | $ 13,269 |
ADDITIONAL INFORMATION TO THE_8
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
General and administrative expenses | $ 5,784 | $ 4,722 | $ 5,303 |
Salaries and related benefits [Member] | |||
IfrsStatementLineItems [Line Items] | |||
General and administrative expenses | 2,283 | 1,339 | 1,774 |
Professional fees and office expenses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
General and administrative expenses | 2,031 | 1,609 | 1,770 |
Depreciation [Member] | |||
IfrsStatementLineItems [Line Items] | |||
General and administrative expenses | 407 | 351 | 81 |
Travel [Member] | |||
IfrsStatementLineItems [Line Items] | |||
General and administrative expenses | 10 | 17 | 222 |
Allowance for doubtful account [Member] | |||
IfrsStatementLineItems [Line Items] | |||
General and administrative expenses | 323 | 1,058 | 835 |
Share based payment [Member] | |||
IfrsStatementLineItems [Line Items] | |||
General and administrative expenses | $ 730 | $ 348 | $ 621 |
ADDITIONAL INFORMATION TO THE_9
ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance income: | |||
Interest-income revaluation of bank deposits | $ 225 | $ 61 | $ 175 |
Revaluation of warrants | 30 | 40 | 62 |
Exchange rate differences | 448 | ||
Finance income | 255 | 549 | 237 |
Finance expense: | |||
Liability in respect of research and development grants | 1,171 | 762 | 969 |
Interest expense and amortization of deferred costs- loan from bank | 283 | ||
Bank commissions | 81 | 40 | 108 |
Exchange rate differences | 363 | 192 | |
Interest expense of lease liability | 60 | 66 | 115 |
Finance expense | $ 1,675 | $ 868 | $ 1,667 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Earnings per share [abstract] | ||||
Weighted number of shares | [1] | 31,154,258 | 22,453,025 | 20,506,202 |
Loss attributable to equity holders of the Company | $ 6,462 | $ 5,385 | $ 10,328 | |
[1] | Computation of diluted loss per share did not include potential ordinary shares that would result from conversion of outstanding options and warrants, since their conversion has anti-dilutive effect. |
BALANCES AND TRANSACTIONS WIT_3
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Key Management Personnel [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Other accounts payable | $ 192 | $ 64 |
Other Interested And Related Parties [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Other accounts payable | $ 45 | $ 38 |
BALANCES AND TRANSACTIONS WIT_4
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Details 1) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Integer | Dec. 31, 2020USD ($)Integer | Dec. 31, 2019USD ($)Integer | |
Balances And Transactions With Related Parties | |||
Salary to those employed by the Company or on its behalf | $ | $ 885 | $ 769 | $ 945 |
Directors’ fees to those not employed by the Company or on its behalf | $ | $ 148 | $ 60 | $ 90 |
Number of individuals to whom the salary and benefits relate: | |||
Related and interested parties employed by the Company or on its behalf | 3 | 2 | 3 |
Directors not employed by the Company | 5 | 6 | 8 |
Benefits to interested and related parties | 8 | 8 | 11 |
BALANCES AND TRANSACTIONS WIT_5
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Balances And Transactions With Related Parties | |||
Short-term benefits | $ 3 | ||
Share-based payment to those employed by the Company or on its behalf | 445 | 182 | 190 |
Share-based payment to those not employed by the Company or on its behalf | $ 90 | $ 150 | $ 147 |
BALANCES AND TRANSACTIONS WIT_6
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
IfrsStatementLineItems [Line Items] | ||||
Research and development expenses | $ 6,393 | $ 5,823 | $ 7,876 | |
General and administrative expenses | 5,784 | 4,722 | 5,303 | |
Sales and marketing expenses | 15,880 | 11,283 | 13,269 | |
Key Management Personnel [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Research and development expenses | [1] | 112 | 236 | 113 |
General and administrative expenses | [1] | 1,137 | 619 | 943 |
Sales and marketing expenses | [1] | 150 | ||
Interested and related parties | [1] | 1,249 | 1,005 | 1,056 |
Other Interested And Related Parties [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Research and development expenses | 82 | 81 | ||
General and administrative expenses | 238 | 201 | 238 | |
Sales and marketing expenses | ||||
Interested and related parties | $ 320 | $ 201 | $ 319 | |
[1] | Some of the key management personnel are interested parties by virtue of holdings. |