Chemomab Therapeutics (CMMB) 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 07, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Registrant Name	Anchiano Therapeutics Ltd.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,099,352
Entity Central Index Key	0001534248
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 14,009	$ 17,575
Restricted cash	126
Prepaid expense and other	542	636
Total current assets	14,677	18,211
Property and equipment, net	121	158
Operating lease right-of-use	339	1,199
Other non-current assets	46	187
Total assets	15,183	19,755
Current liabilities:
Trade payables	602	875
Accrued expenses and other	2,681	2,855
Operating lease liability	188	391
Total current liabilities	3,471	4,121
Non-current operating lease liability	152	725
Total liabilities	3,623	4,846
Commitments and contingencies
Shareholders' equity:
Ordinary shares, no par value - authorized 100,000,000 shares as of March 31, 2020 and December 31,2019; issued and outstanding 37,099,352 shares at March 31, 2020 and December 31,2019
Paid-in capital	119,654	119,468
Currency translation differences reserve	872	872
Accumulated deficit	(108,966)	(105,431)
Total shareholders' equity	11,560	14,909
Total liabilities and shareholders' equity	$ 15,183	$ 19,755

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical)
Common Stock, Par or Stated Value Per Share	$ 0	$ 0
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	37,099,352	37,099,352
Common Stock, Shares, Outstanding	37,099,352	37,099,352

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating expenses:
Research and development	$ 1,050	$ 4,135
General and administrative	1,825	1,291
Restructuring expense	670
Total operating expenses	3,545	5,426
Finance (income) expense, net	(10)	4,487
Net loss and comprehensive loss	$ (3,535)	$ (9,913)
Basic and diluted loss per share	$ (0.10)	$ (0.38)
Weighted average number of shares outstanding - basic and diluted	37,099,352	26,337,517

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Ordinary shares	Paid-in capital	Currency translation differences reserve	Accumulated deficit	Total
Beginning balance at Dec. 31, 2018	$ 0	$ 87,240,000	$ 872,000	$ (78,307,000)	$ 9,805,000
Beginning balance (in shares) at Dec. 31, 2018	15,575,682
CHANGES DURING THE YEAR:
Issuance of shares, net	$ 0	26,500,000	0	0	26,500,000
Issuance of shares, net (in shares)	21,523,670
Reclassification of warrants due to reassessment	$ 0	(3,628,000)	0	0	(3,628,000)
Reclassification of warrants due to modification	0	8,198,000	0	0	8,198,000
Share-based compensation	0	380,000	0	0	380,000
Net loss	0	0	0	(9,913,000)	(9,913,000)
Ending balance at Mar. 31, 2019	$ 0	118,690,000	872,000	(88,220,000)	31,342,000
Ending balance (in shares) at Mar. 31, 2019	37,099,352
Beginning balance at Dec. 31, 2019	$ 0	119,468,000	872,000	(105,431,000)	14,909,000
Beginning balance (in shares) at Dec. 31, 2019	37,099,352
CHANGES DURING THE YEAR:
Share-based compensation	$ 0	186,000	0	0	186,000
Net loss	0	0	0	(3,535,000)	(3,535,000)
Ending balance at Mar. 31, 2020	$ 0	$ 119,654,000	$ 872,000	$ (108,966,000)	$ 11,560,000
Ending balance (in shares) at Mar. 31, 2020	37,099,352

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	Mar. 31, 2020	Mar. 31, 2019
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Common Stock, No Par Value	$ 0	$ 0

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities:
Net loss	$ (3,535)	$ (9,913)
Adjustments required to reconcile net loss to net cash used in operating activities:
Financing costs, net	0	4,565
Depreciation	71	21
Share-based payments	186	380
Write-off of right-of-use related to restructuring	84	0
Changes in operating asset and liabilities :
Prepaid and other current	94	1,498
Other non-current assets	11	(157)
Trade payables	(273)	704
Accrued expenses and other	(174)	(220)
Net cash used in operating activities	(3,536)	(3,122)
Investing activities:
Purchase of property and equipment	(34)	(75)
Net cash used in investing activities	(34)	(75)
Financing activities:
Proceeds from issuance of ordinary shares and warrants	0	30,500
Issuance costs	0	(2,681)
Net cash provided by financing activities	0	27,819
Increase (decrease) in cash, cash equivalents and restricted cash	(3,570)	24,622
Cash, cash equivalents and restricted cash at, beginning of period	17,705	7,640
Cash, cash equivalents and restricted cash at, end of period	$ 14,135	$ 32,262

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Reconciliation in amounts on consolidated balance sheets:
Cash and cash equivalents	$ 14,009	$ 32,132
Restricted Cash	126	130
Total cash and cash equivalents and restricted cash	14,135	32,262
Supplemental disclosure of cash flow information:
Reclassification of warrant due to reassessment	0	3,628
Reclassification of warrant due to modification	0	8,198
Taxes paid in cash	0	244
Interest paid in cash	$ 0	$ 22

The Company and Basis of Presen

The Company and Basis of Presentation	3 Months Ended
	Mar. 31, 2020
The Company and Basis of Presentation
The Company and Basis of Presentation	1. The Company and Basis of Presentation Anchiano Therapeutics Ltd. is an early-stage preclinical biopharmaceutical company committed to discovering and developing new cancer therapies designed to target the products of mutated genes that are drivers of human malignancies. The Company is developing small-molecule pan-mutant RAS inhibitors and inhibitors of PDE10 and the β-catenin pathway. In November 2019, the Company discontinued clinical development of inodiftagene vixteplasmid. After a thorough evaluation of the available data, the Company determined there was a low probability of surpassing the pre-defined futility threshold at the planned interim analysis of its Phase 2 Codex study, which was evaluating inodiftagene vixteplasmid in patients with BCG-unresponsive non-muscle-invasive bladder cancer (“NMIBC”), and announced the discontinuation of the study. In January 2020, the Board of Directors of the Company approved management’s recommendation to close the Company’s office and laboratories located in Israel. Following the closure of the Israeli facilities, the Company’s sole remaining office will be located in Cambridge, Massachusetts (for details, see Note 4 below). During the last two years, there has been a significant increase in the Company’s activities in the United States, resulting from the Company’s management’s strategic decision to shift its development, financing and ongoing operations from Israel to the United States. The Company is incorporated and registered in Israel. The Company’s American Depositary Shares ("ADSs"), each representing five ordinary shares of the Company with no par value (the "ordinary shares"), began trading on the Nasdaq Capital Market (“Nasdaq”) in February 2019 under the symbol "ANCN". The Company’s ordinary shares traded on the Tel Aviv Stock Exchange (“TASE”) between August 2006 and June 2019, at which time the Company voluntarily delisted from the TASE. The Company wholly owns a subsidiary, Anchiano Therapeutics Israel Ltd., which itself wholly owns a Delaware-incorporated subsidiary, Anchiano Therapeutics, Inc. Liquidity The condensed consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company has incurred losses and cash flow deficits from operations since inception, resulting in an accumulated deficit at March 31, 2020 of $109.0 million. The Company has financed operations to date primarily through public and private placements of equity securities. The Company anticipates that it will continue to incur net losses for the foreseeable future. The Company believes that its existing cash and cash equivalents will only be sufficient to fund its projected cash needs until the first quarter of 2021. Accordingly, these factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. To meet future capital needs, the Company would need to raise additional capital through equity or debt financing or other strategic transactions. However, any such financing may not be on favorable terms or may not be available to the Company on any terms. The failure of the Company to obtain sufficient funds on commercially-acceptable terms when needed, would have a material adverse effect on the Company’s business, results of operations and financial condition. The forecast of cash resources is forward-looking information that involves risks and uncertainties, and the actual amount of the Company’s expenses could vary materially and adversely as a result of a number of factors. The Company has based its estimates on assumptions that may prove to be wrong, and the Company’s expenses could prove to be significantly higher than it currently anticipates. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Unaudited Interim Financial Information The interim condensed consolidated financial statements included in this quarterly report are unaudited. The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for a fair statement of the Company’s financial position as of March 31, 2020, and its results of operations for the three months ended March 31, 2020 and 2019, changes in shareholders’ equity for the three months ended March 31, 2020 and 2019, and cash flows for the three months ended March 31, 2020 and 2019. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other future annual or interim period. The December 31, 2019 balance sheet was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Form 10‑K for the year ended December 31, 2019 as filed with the SEC. The Company’s significant accounting policies are disclosed in the audited financial statements for the year ended December 31, 2019 included in the Company’s Form 10‑K. Since the date of such financial statements, there have been no changes to the Company’s significant accounting policies.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies a. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. The Company evaluates its assumptions on an ongoing basis, including those related to share-based compensation, leases and derivatives. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates. b. Reclassifications Certain prior year amounts shown in the accompanying unaudited condensed consolidated financial statements have been reclassified to conform to the 2020 presentation. These reclassifications did not have any effect on total current assets, total assets, total current liabilities, total liabilities, total shareholders’ equity, net loss, or loss per share. c. Recent Accounting Pronouncements Recent accounting pronouncements, other than below, issued by the FASB (including its Emerging Issues Task Force), the AICPA and the SEC did not or are not believed by management to have a material effect on the Company’s present or future financial statements. In December 2019, the FASB issued “ASU 2019‑12, Simplifying the Accounting for Income Taxes.” The objective of the standard is to improve areas of GAAP by removing certain exceptions permitted by ASC 740 and clarifying existing guidance to facilitate consistent application. The standard will become effective for us beginning on January 1, 2021. The Company is currently evaluating the new standard to determine the potential impact on its financial condition, results of operations, cash flows, and financial statement disclosures.

Accrued expenses and other

Accrued expenses and other	3 Months Ended
	Mar. 31, 2020
Accrued expenses and other
Accrued expenses and other	3. Accrued expenses and other Accrued and other current liabilities consist of the following for the periods indicated (in thousands): March 31, December 31, 2020 2019 Accrued expenses $ 935 $ 372 Restructuring accrual 1,322 2,161 Payroll and related 170 60 Liability for employee rights upon retirement 254 262 $ 2,681 $ 2,855

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases
Leases	4. Leases In January 2018, the Company signed an agreement to rent a laboratory and offices in Jerusalem through May 2023. The Company had an option to extend the agreement by another five years. The annual rent (including management fees) is approximately $0.4 million and is linked to the Israeli Consumer Price Index. Pursuant to the agreement, bank guarantees of $0.1 million were provided to the property owner. In January 2020, pursuant to the Company’s decision to close its Israeli operations, the agreement was modified such that the Company will vacate the facilities on May 31, 2020 but will continue to make scheduled lease payments through October 31, 2020. The Company recorded restructuring expense of $247,000 related to the modification of the Israeli lease agreement and other closure activities. In May 2018, the Company signed an agreement to rent space for its headquarter offices in Cambridge, Massachusetts. This agreement was amended in October 2019 to reflect relocating to a new 2,400 square foot suite within the same facility effective February 1, 2020. The annual rent is approximately $0.2 million. The amended lease term ends January 31, 2022 and there are no options to extend the lease.

License Agreements

License Agreements	3 Months Ended
	Mar. 31, 2020
License Agreement
License Agreement	5. License Agreement In September 2019, the Company announced that it entered into an option to license agreement with ADT Pharmaceuticals, LLC (“ADT”). Pursuant to the terms and conditions set forth in the agreement, the parties agreed to conduct research and development activities of novel small-molecule inhibitors (RAS and PDE10/β-catenin). As part of the arrangement, the Company is primarily responsible for the research, development, manufacturing and regulatory activities and ADT assists with the research activities as necessary in exchange for a quarterly fee from the Company. In connection with the agreement, ADT also granted the Company exclusive rights to research, develop, manufacture and commercialize the aforementioned compounds relating to patents owned by ADT and any products containing such compounds worldwide. In consideration for the rights granted under the agreement, the Company committed to pay ADT (i) a $3 million upfront fee; (ii) a fee upon transfer of the know-how and intellectual property rights to the Company; and then (iii) additional payments, including milestone and royalty payments. The Company has the ability to terminate the agreement at any time in its entirety or on a compound-by-compound basis after providing 90 days written notice to ADT. The upfront payment was paid in the third quarter of 2019. The Company accounted for the upfront fee and additional payments as research and development expense.

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2020
Restructuring
Restructuring	6. Restructuring Restructuring provisions are recognized for the direct expenditures arising from restructuring initiatives, where the plans are sufficiently detailed and where appropriate communication has been made to those affected. The Company has recorded restructuring expenses related principally to contract termination costs due to the discontinuation of the clinical trials to CROs and manufacturers and contractual involuntary termination benefits to employees which have been accounted for as ongoing benefit arrangements and associated termination costs related to the reduction of its workforce. One-time termination benefits are expensed at the date the employees are notified, unless the employees must provide future services beyond a minimum retention period, in which case the benefits are expensed ratably over the future service periods. A provision for contract termination costs, in which a contract is terminated or the entity will continue to incur costs pursuant to contract for its remaining term without economic benefit, is recognized only when the contract is terminated or when the entity permanently ceases using the rights granted under the contract. In November 2019, the Company decided to discontinue its Phase 2 Codex study in patients with BCG-unresponsive NMIBC. In connection with this decision, the Company is required to make certain payments under contracts with CROs and with manufactures of the drug in order to terminate the contracts and close the trials. This restructuring plan included a reduction in the workforce of seven employees. In January 2020, the Board of Directors approved management’s recommendation to close the Company’s office and laboratories located in Israel. In connection with this restructuring, the employment of the remaining five Israeli employees will be terminated in the second quarter of 2020. As noted above, in conjunction with this decision the Company renegotiated its lease for Israeli laboratory and office space. In connection with this decision, the Company expects to vacate the facilities on May 30, 2020 but continue to make scheduled lease payments through October 31, 2020. In the first quarter of 2020, the Company recorded a restructuring charge to adjust its operating lease right of use asset and operating lease liability to reflect the loss on the early termination of the Israeli lease obligation. The following table represents a roll forward of the restructuring and other activities noted above (in thousands): CRO, Facility Manufacturing Severance- and and other related related Leases Total Balance, January 1, 2020 $ 2,572 $ 336 $ — $ 2,908 Expenses 423 — 247 670 Paid or consummed (1,881) (69) (216) (2,166) Balance, March 31, 2020 $ 1,114 $ 267 $ 31 $ 1,412 Outstanding liabilities for restructuring related activities at March 31, 2020 included in trade payables and accrued expenses and other were $90,000 and $1,322,000, respectively.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2020
Shareholders' Equity
Shareholders' Equity	7. Shareholders’ Equity a. 2018 Private Placement In June 2018, the Company completed a $22.9 million fundraising round from investors in the United States and Israel. In consideration for the investment, the Company issued 5,960,787 ordinary shares at a price per share of approximately $3.842, as well as 2,713,159 warrants to acquire additional shares equal to 80% of the shares issued, at an exercise price per share of NIS 16.20 (approximately $4.32). The warrants are exercisable for five years from December 31, 2018, the closing date of the transaction, and may be exercised on a cashless basis. In addition, the investors were granted price protection rights (to shares and warrants) in the event of a future share issuance by the Company wherein the price does not increase by at least approximately 42.86% over the price per share in the fundraising (or is less than the adjusted price per share, if the price has already been adjusted). For details of an allocation that took place in 2019 pursuant to these rights, see Note 7b below. The warrants and shares were recorded within equity on the issuance date. Effective January 1, 2019, the Company changed its functional currency from NIS to USD. Due to this change, the exercise price of the warrants was no longer denominated in the Company’s functional currency and therefore not considered indexed to the Company’s own stock according to ASC 815‑40. Accordingly, the Company recorded the fair value of the warrants as a liability at January 1, 2019. Subsequently, upon the Company’s Nasdaq initial public offering on February 14, 2019, the warrants’ term was modified such that the exercise price currency was changed to USD. As a result, the warrants were once again considered indexed to the Company’s own stock according to ASC 815‑40. Accordingly, the fair value of the warrants at February 14, 2019 was reclassified from a liability to equity on that date. The following table summarizes the activity for the warrants whose fair value measurements are estimated utilizing Level 3 inputs (in thousands): 2019 Fair value on January 1, 2019 $ 3,628 Adjustments-finance expenses 4,570 Fair value on February 14, 2019 $ 8,198 The Company has determined the fair value of the warrants (a Level 3 valuation) as of January 1, 2019 and February 14, 2019. The fair value of these warrants was estimated by implementing the Probability-Weighted Expected Return Method or the Black-Scholes Method. The following parameters were used: Derivative Financial Instrument February 14, 2019 January 1, 2019 Stock price $ 1.84 $ 2.50 Expected term End of 2022 End of 2022 Risk free rate 2.49 % 1.37 % Volatility 52 % 48 % b. Public Offering On February 14, 2019, the Company raised gross proceeds of $30.5 million in its Nasdaq initial public offering (“IPO”), allocating 2,652,174 ADSs, each representing five ordinary shares of the Company. The ADSs are listed under the symbol “ANCN.” In accordance with price protection rights granted in 2018 and activated in the offering (see Note 7a above for details and accounting treatment), the Company issued an additional 8,262,800 ordinary shares (equivalent to 1,652,560 ADSs) to rights holders and adjusted their warrants to be exercisable for an additional 6,207,330 ordinary shares (equivalent to 1,241,466 ADSs). c. Share-based compensation The Company has two share-based compensation plans under which share options or other share-based awards have been granted: the 2011 Share Option Plan and the 2017 Share Option Plan (the “2017 Plan”). The 2017 Plan replaced the 2011 Share Option Plan with respect to future grants; and, therefore, no further awards may be made under 2011 Share Option Plan. The Compensation Committee of the Board of Directors and the Board of Directors administer these plans. The fair value of each option granted is estimated using the Black-Scholes option pricing method. The volatility is based on the Company’s historical volatility. The risk-free interest rate assumption is based on observed Treasury yields over the expected term of the options granted with USD-denominated exercise prices (options granted in the past with NIS-denominated exercise prices used the equivalent Israeli government bond yields). The Company’s management uses the mid-point between the vesting date and the contractual term for each vesting tranche or its expectations, as applicable, of each option as its expected term. The expected term of the options granted represents the period of time that granted options are expected to remain outstanding The fair value of each option granted in the three months ended March 31, 2019 was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: Three months ended March 31, 2019 Value of ordinary share $ 1.54 Dividend yield 0% Expected volatility 52.3% - 68.6% Risk-free interest rate 2.4% - 2.5% Expected term (years) 5.5 - 6.9 The were no grants of stock options in the three months ended March 31, 2020. The following table summarizes the number of options outstanding and exercisable as of March 31, 2020: Weighted Average Weighted Remaining Number of Average Contractual Life in Shares Exercise Price Years Options outstanding - January 1, 2020 3,822,374 $ 2.50 8.5 Forfeited/expired/cancelled (120,106) Options outstanding - March 31, 2020 3,702,268 $ 2.52 8.3 Options exercisable - March 31, 2020 1,893,715 The aggregate intrinsic value of both outstanding and exercisable options at March 31, 2020 is $0. The following table illustrates the effect of share-based compensation on the statements of operations (in thousands): Three months ended March 31, 2020 2019 Research and development $ 73 $ 142 General and administrative 113 238 $ 186 $ 380

Net Loss per share

Net Loss per share	3 Months Ended
	Mar. 31, 2020
Net Loss per share
Net Loss per share	8. Net Loss per share Basic loss per share is computed on the basis of the net loss for the period divided by the weighted-average number of ordinary shares outstanding during the period. Diluted loss per share is based upon the weighted-average number of ordinary shares and of ordinary shares equivalents outstanding when dilutive. Ordinary share equivalents include outstanding stock options which are included under the treasury stock method when dilutive. The following ordinary shares underlying stock options and warrants were excluded from the calculation of diluted net loss per ordinary share, because their effect would have been anti-dilutive for the years presented: Three months ended March 31, 2020 2019 Stock Options 3,702,268 2,405,642 Warrants 10,975,959 10,975,959

Subsequent events

Subsequent events	3 Months Ended
	Mar. 31, 2020
Subsequent events
Subsequent events	9. Subsequent events COVID‑19 Outbreak In March 2020 the World Health Organization declared the global novel coronavirus (COVID‑19) outbreak a pandemic. As of May 7, 2020, the Company’s operations have not been significantly impacted by the COVID‑19 outbreak. However, the Company cannot at this time predict the specific extent, duration, or full impact that the COVID‑19 outbreak will have on its financial condition and operations, including ongoing and planned pre-clinical development activities. Share Capital On Aril 23, 2020, in connection with the Annual General Meeting of Shareholders, the shareholders of the Company agreed to increase the authorized share capital from 100,000,000 ordinary shares to 500,000,000 ordinary shares.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Summary of Significant Accounting Policies
Use of Estimates	a. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. The Company evaluates its assumptions on an ongoing basis, including those related to share-based compensation, leases and derivatives. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates.
Reclassification	a. Reclassifications Certain prior year amounts shown in the accompanying unaudited condensed consolidated financial statements have been reclassified to conform to the 2020 presentation. These reclassifications did not have any effect on total current assets, total assets, total current liabilities, total liabilities, total shareholders’ equity, net loss, or loss per share.
Recent Accounting Pronouncement	a. Recent Accounting Pronouncements Recent accounting pronouncements, other than below, issued by the FASB (including its Emerging Issues Task Force), the AICPA and the SEC did not or are not believed by management to have a material effect on the Company’s present or future financial statements. In December 2019, the FASB issued “ASU 2019‑12, Simplifying the Accounting for Income Taxes.” The objective of the standard is to improve areas of GAAP by removing certain exceptions permitted by ASC 740 and clarifying existing guidance to facilitate consistent application. The standard will become effective for us beginning on January 1, 2021. The Company is currently evaluating the new standard to determine the potential impact on its financial condition, results of operations, cash flows, and financial statement disclosures.

Accrued expenses and other (Tab

Accrued expenses and other (Tables)	3 Months Ended
	Mar. 31, 2020
Accrued expenses and other
Accrued and other current liabilities	Accrued and other current liabilities consist of the following for the periods indicated (in thousands): March 31, December 31, 2020 2019 Accrued expenses $ 935 $ 372 Restructuring accrual 1,322 2,161 Payroll and related 170 60 Liability for employee rights upon retirement 254 262 $ 2,681 $ 2,855

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Mar. 31, 2020
Restructuring
Schedule of roll forward of the restructuring and other activities	CRO, Facility Manufacturing Severance- and and other related related Leases Total Balance, January 1, 2020 $ 2,572 $ 336 $ — $ 2,908 Expenses 423 — 247 670 Paid or consummed (1,881) (69) (216) (2,166) Balance, March 31, 2020 $ 1,114 $ 267 $ 31 $ 1,412

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Shareholders' Equity
Summary of the activity for the warrants whose fair value measurements are estimated utilizing Level 3 inputs	2019 Fair value on January 1, 2019 $ 3,628 Adjustments-finance expenses 4,570 Fair value on February 14, 2019 $ 8,198
Summary of assumptions used in valuation of the fair value of the warrants	Derivative Financial Instrument February 14, 2019 January 1, 2019 Stock price $ 1.84 $ 2.50 Expected term End of 2022 End of 2022 Risk free rate 2.49 % 1.37 % Volatility 52 % 48 %
Summary of assumptions used in valuation of the fair value of the options granted	Three months ended March 31, 2019 Value of ordinary share $ 1.54 Dividend yield 0% Expected volatility 52.3% - 68.6% Risk-free interest rate 2.4% - 2.5% Expected term (years) 5.5 - 6.9
Summary of outstanding and exercisable options	Weighted Average Weighted Remaining Number of Average Contractual Life in Shares Exercise Price Years Options outstanding - January 1, 2020 3,822,374 $ 2.50 8.5 Forfeited/expired/cancelled (120,106) Options outstanding - March 31, 2020 3,702,268 $ 2.52 8.3 Options exercisable - March 31, 2020 1,893,715
Summary of the effect of share-based compensation on the statements of operations	Three months ended March 31, 2020 2019 Research and development $ 73 $ 142 General and administrative 113 238 $ 186 $ 380

Net Loss per share (Tables)

Net Loss per share (Tables)	3 Months Ended
	Mar. 31, 2020
Net Loss per share
Schedule of share options and warrants were excluded from the calculation of diluted net loss per ordinary share because their effect would have been anti-dilutive for the years presented	Three months ended March 31, 2020 2019 Stock Options 3,702,268 2,405,642 Warrants 10,975,959 10,975,959

The Company and Basic of Presen

The Company and Basic of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
The Company and Basis of Presentation
Number of ordinary shares represented by each ADS (in shares)	5
Ordinary shares, par value (in dollars per share)	$ 0		$ 0
Accumulated deficit	$ 108,966	$ 105,431

Accrued expenses and other (Det

Accrued expenses and other (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accrued expenses and other
Accrued expenses	$ 935	$ 372
Restructuring accrual	1,322	2,161
Payroll and related	170	60
Liability for employee rights upon retirement	254	262
Total	$ 2,681	$ 2,855

Leases (Details)

Leases (Details) $ in Thousands	May 31, 2018USD ($)	Jan. 31, 2020USD ($)	Jan. 31, 2018USD ($)	Mar. 31, 2020USD ($)	Feb. 01, 2020ft²
Leases
Option for extend agreement			5 years
Annual rent including management fees	$ 200		$ 400
Bank guarantees provided to property owner			$ 100
Restructuring expenses		$ 247		$ 670
Area of land | ft²					2,400
Options to extend the lease				false

License Agreement (Details)

License Agreement (Details) $ in Millions	1 Months Ended
	Sep. 30, 2019USD ($)
License Agreement
Upfront fee for license arrangements	$ 3
Written notice period for termination of the agreement	90 days

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2020	Mar. 31, 2020
Restructuring
Beginning balance	$ 2,908	$ 2,908
Expenses	247	670
Paid or consumed		(2,166)
Closing balance		1,412
CRO, manufacturing and other related
Restructuring
Beginning balance	2,572	2,572
Expenses		423
Paid or consumed		(1,881)
Closing balance		1,114
Severance-Related
Restructuring
Beginning balance	336	336
Expenses		0
Paid or consumed		(69)
Closing balance		267
Facilities and Leases
Restructuring
Beginning balance	$ 0	0
Expenses		247
Paid or consumed		(216)
Closing balance		$ 31

Restructuring - Narrative (Deta

Restructuring - Narrative (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 1,322,000	$ 2,161,000
Trade Payable
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	90,000
Accrued Liabilities
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 1,322,000

Shareholders' Equity - 2019 Pub

Shareholders' Equity - 2019 Public offering and 2018 Private Placement (Details) $ / shares in Units, $ in Millions	Feb. 14, 2019USD ($)shares	Jun. 30, 2018USD ($)$ / sharesshares	Mar. 31, 2020shares	Dec. 31, 2018	Jun. 30, 2018₪ / shares	Jun. 30, 2018$ / shares
Sale Of Stock [Line Items]
Number of ordinary shares represented by each ADS (in shares)			5
2019 Public offering
Sale Of Stock [Line Items]
Initial public offering cost | $	$ 30.5
Number of ADSs issued	2,652,174
Number of ordinary shares represented by each ADS (in shares)	5
Number of ordinary shares issued	8,262,800
Number of equivalent ADS for ordinary shares	1,652,560
Additional warrants exercisable	6,207,330
Number of equivalent ADS for warrants	1,241,466
2018 Private Placement
Sale Of Stock [Line Items]
Number of warrants issued		2,713,159
Number of ordinary shares issued		5,960,787
Proceeds from issuance of shares | $		$ 22.9
Share price per share | $ / shares		$ 3.842
Percentage of additional share issued, to be acquired by warrants.		80.00%
Warrant exercise price | (per share)					₪ 16.20	$ 4.32
Warrants exercisable period				5 years
Threshold percentage for future share issuance price			42.86%

Shareholders' Equity - Warrants

Shareholders' Equity - Warrants activity (Details) - Level 3 $ in Thousands	2 Months Ended
	Feb. 14, 2019USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value at the beginning of the year	$ 3,628
Adjustments - Additional paid-in capital	4,570
Fair value at the end of the year	$ 8,198

Shareholders' Equity - Fair Val

Shareholders' Equity - Fair Value assumptions of warrants and 2018 Reverse Split (Details)	Apr. 23, 2020shares	Apr. 22, 2020shares	Mar. 31, 2020shares	Dec. 31, 2019shares	Feb. 14, 2019$ / shares	Jan. 01, 2019$ / shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Ordinary shares, shares authorized			100,000,000	100,000,000
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Ordinary shares, shares authorized		100,000,000
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Ordinary shares, shares authorized	500,000,000
Level 3 | Derivative Financial Instruments - Warrants | Stock price (USD)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative Liability, Measurement Input | $ / shares					1.84	2.50
Level 3 | Derivative Financial Instruments - Warrants | Risk free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative Liability, Measurement Input					2.49	1.37
Level 3 | Derivative Financial Instruments - Warrants | Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative Liability, Measurement Input					52	48

Shareholders' Equity - Fair v_2

Shareholders' Equity - Fair value of stock options (Details) - 2011 share option plan	3 Months Ended
	Mar. 31, 2020plan$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of ordinary share | $ / shares	$ 1.54
Dividend yield	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	5 years 6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, maximum	68.60%
Risk-free interest rate, maximum	2.50%
Expected term	6 years 10 months 24 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share based compensation plans | plan	2
Expected volatility, minimum	52.30%
Risk-free interest rate, minimum	2.40%

Shareholders' Equity - Summary

Shareholders' Equity - Summary of outstanding and exercisable options (Details) - Stock Options - 2011 share option plan - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Share-based compensation
Aggregate intrinsic value	$ 0
Number of options
Outstanding at the beginning	3,822,374
Granted	0
Forfeited	(120,106)
Outstanding at the end	3,702,268	3,822,374
Options exercisable	1,893,715
Weighted Average Exercise Price
Outstanding at the beginning	$ 2.50
Outstanding at the end	$ 2.52	$ 2.50
Weighted Average Remaining Contractual Life in Years
Weighted Average Remaining Contractual Life in Years	8 years 3 months 18 days	8 years 6 months

Shareholders' Equity - Share-ba

Shareholders' Equity - Share-based compensation expenses (Details) - 2011 share option plan - Stock Options - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expenses	$ 186	$ 380
Research and development expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expenses	73	142
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expenses	$ 113	$ 238

Net Loss per share - Severance

Net Loss per share - Severance pay and Antidilutive securities (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities	3,702,268	2,405,642
Derivative Financial Instruments - Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities	10,975,959	10,975,959

Subsequent events (Details)

Subsequent events (Details) - shares	Apr. 23, 2020	Apr. 22, 2020	Mar. 31, 2020	Dec. 31, 2019
Subsequent Event [Line Items]
Common share authorized			100,000,000	100,000,000
Maximum
Subsequent Event [Line Items]
Common share authorized	500,000,000
Minimum
Subsequent Event [Line Items]
Common share authorized		100,000,000